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Opportunities of frugality in the post-Corona era

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  • Herstatt, Cornelius
  • Tiwari, Rajnish

Abstract

Objective of this discussion paper is twofold: First, we assess the likely impact of the Corona crisis on the economic and societal choices of people, especially in relation to voluntary simplicity. Second, we contextualize the impact of those choices in the field of innovation management. Taking a normative-conceptual perspective we seek to understand in how far frugality, and inter alia, frugal innovations can play a role in better managing the after-effects of the Corona crisis and what implications arise out of this for the relevant societal stakeholders, especially for corporates, policy makers and consumers. Taking note of historical discussions of the role of frugality as a "virtuell", we propose that the currently ongoing fourth renaissance of frugality needs to - and is likely to - emerge as a megatrend that may shape a frugal "AGE" resulting in "affordable green excellence" as the dominant innovation paradigm. To realize this potential, however, it is necessary to move away from the unidimensional focus on monetary affordability of frugal solutions. There is a need for developing a more comprehensive and multidimensional understanding of affordability that is targeted at ensuring financial, societal, infrastructural and ecological affordability of frugal products, services, technologies and business models. Frugal innovators and entrepreneurs should not merely target "significant cost reduction" in relation to existing substitute products but rather aim at ensuring "high affordability" that will open up new business arenas with means of breakthrough innovations and technological excellence. This paradigm shift requires action from all relevant stakeholders including policymakers.

Suggested Citation

  • Herstatt, Cornelius & Tiwari, Rajnish, 2020. "Opportunities of frugality in the post-Corona era," Working Papers 110, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    • Handle: RePEc:zbw:tuhtim:110
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    References listed on IDEAS

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    4. Rajnish Tiwari, 2017. "Frugality in Indian Context: What Makes India a Lead Market for Affordable Excellence?," India Studies in Business and Economics, in: Cornelius Herstatt & Rajnish Tiwari (ed.), Lead Market India, pages 37-61, Springer.
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    10. Herstatt, Cornelius & Tiwari, Rajnish, 2015. "Frugale Innovation: Wissenschaftliche Einordnung eines neuen Innovationsbegriffs," Working Papers 88, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
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    1. Qaisar Iqbal & Katarzyna Piwowar-Sulej, 2023. "Frugal innovation embedded in business and political ties: transformational versus sustainable leadership," Asian Business & Management, Palgrave Macmillan, vol. 22(5), pages 2225-2248, November.
    2. Achtelik, Timo & Herstatt, Cornelius & Tiwari, Rajnish, 2022. "Frugal sustainability: A new perspective to foster corporate sustainability," Working Papers 112, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management, revised 2022.
    3. Sharmelly, Rifat & Ray, Pradeep Kanta, 2021. "Managing resource-constrained innovation in emerging markets: Perspectives from a business model," Technology in Society, Elsevier, vol. 65(C).
    4. Achtelik, Timo & Tiwari, Rajnish, 2022. "Ecological lightweight design for sustainable composites: Need for application of frugal engineering principles," Working Papers 114, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.

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    More about this item

    Keywords

    Corona Crisis; Covid-19 Pandemic; Frugality 4.0; Frugal Innovation; Affordable Green Excellence; Circular Economy; Voluntary Simplicity;
    All these keywords.

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