Frugal Digitalization: An Exploratory Study of Determining Factors

The frugal digitalization, i.e., the digitalization while consuming minimum resources, is taking attention. The aim of this study is to explore the factors that may affect frugal digitalization at the organizational level. After reviewing the literature, we found that the current theoretical corpus is insufficient to address our research topic, which gives our study its exploratory nature. Therefore, we interviewed 23 experts, and content analysis is applied to analyze the gathered data. As a result, a research model is explored that combines the innovation characteristics of frugal digitalization from Diffusion of Innovation (Rogers 2003) with the technology, organization, and environment contexts (Tornatzky et al. 1990) of the organization that underline the adoption of frugal digitalization. Cost, expectations, relative advantage, and compatibility are the technological factors. The organizational factors include top management engagement, the organizational structure, resource optimization, the cultural aspect, marketing, the lack of resources, and sustainability. The environmental factors are government support and the digital divide. These findings contribute to both theoretical and practical areas. The study fills a theoretical gap in the literature; it explores a model that, combining two theoretical perspectives, helps to explain the factors of frugal digitalization. At a practical level, this research might serve as a guide for businesses interested in investing in frugal digitalization.