MNCs in India: focus on frugal innovation

2014 ◽  
Vol 6 (1) ◽  
pp. 4-28 ◽  
Author(s):  
Abhoy K. Ojha

Purpose – Frugal innovation is a term that has been used to describe the low-cost products and services, as well as the systems and processes adopted by organizations to develop them. The purpose of this paper is to examine the experience of multi-national companies (MNCs) in India as they adopt the philosophy of frugal innovation to develop products that are high in technology but low in terms of cost to meet the requirements of the market conditions in India, and similar low-income economies. Design/methodology/approach – The case study methodology was adopted to understand the experiences of the Indian subsidiaries of two MNCs, Bosch India and 3M India. Data were acquired through interviews with key decision makers, documents, and publicly available information. Findings – The two MNCs have increased research and development (R&D) in India and adopted the philosophy of frugal innovation which combines high technology with low costs. Based on the analysis, some propositions are presented indicating that MNCs will shift R&D to India if there are market opportunities; they will adopt the philosophy of frugal innovation to produce high technology products that are lost cost and low cost over product lifetime and will also expand to new-to-the-world innovation and finally contribute to global innovation. Research limitations/implications – The study is based on only two case studies and a large sample study may be required before the findings can be generalized. Practical implications – Other MNCs can learn from Bosch India and 3M India in terms of adopting frugal innovation practices to be successful in low-income economies. Originality/value – The field of frugal innovation is quite new and largely based on anecdotal accounts of successful low-cost innovation. This paper provides a more detailed account of the experiences of two well-known organizations to present propositions that may be used to conduct a large sample study.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Leonor Costa ◽  
Aurora Teixeira ◽  
Ana Brochado

Purpose This study aims to understand why young people are interested in buying frugal innovations. Design/methodology/approach Data were collected with a survey administered to 534 university students enrolled in various fields of study (e.g. sciences, technology, economics and fine arts). Using the Tata Nano car as an example of frugal innovation, a model based on the unified theory of acceptance and use of technology was developed using partial least squares structural equation modeling. Findings The model’s results reveal that effort expectancy, performance expectancy and facilitating conditions are critical factors that explain university students’ intention to buy Tata Nano. Originality/value Although frugal innovations are often introduced first in developing countries, frugal innovations could be highly relevant to users in developed nations as these innovations can provide market opportunities in terms of cost-conscious, relatively low-income and sustainability-conscious consumers.


2017 ◽  
Vol 10 (3) ◽  
pp. 410-430 ◽  
Author(s):  
Bashir Olanrewaju Ganiyu ◽  
Julius Ayodeji Fapohunda ◽  
Rainer Haldenwang

Purpose This study aims to identify and establish effective housing financing concepts to be adopted by government in achieving its mandate of providing sustainable affordable housing for the poor to decrease the building of shacks, as well as proposing solutions to the housing deficit in South Africa. A rise in demand and shortage in supply of housing calls for the need to address issues of affordable housing in South Africa, and developing countries in general, to ensure a stable and promising future for poor families. Design/methodology/approach Literature has revealed that the South African government, at all levels, accorded high priority to the provision of low-cost housing. Thus, government has adopted subsidy payment as a method of financing affordable housing to ensure that houses are allocated free to the beneficiaries. This also addresses the historically race-based inequalities of the past, but unfortunately, this has not been fully realised. This study uses a sequential mixed method approach, where private housing developers and general building contractors were the research participants. The qualitative data were analysed using a case-by-case analysis, and quantitative data were analysed using a descriptive statistical technique on SPSS. Findings The results of the qualitative analysis reveal a gross abuse of the housing subsidies system by the beneficiaries of government-funded housing in South Africa. This is evident from illegal sale of the houses below market value. This has led to a continual building of shacks and an increased number of people on the housing waiting list instead of a decrease in the housing deficit. The results from quantitative analysis affirm the use of “Mortgage Payment Subsidies, Mortgage Payment Deductions, Down-Payment Grant and Mortgage Interest Deductions” as viable alternatives to subsidy payment currently in use to finance affordable housing projects by the South African Government. Practical implications At the moment, the focus of the South African National Government is continual provision of free housing to the historically disadvantage citizens, but the housing financing method being used encourages unapproved transfer of ownership in the affordable housing sector. This study thus recommends the use of an all-inclusive housing financing method that requires a monetary contribution from the beneficiaries to enable them take control of the process. Originality/value The relational interface model proposed in this study will reduce pressure on government budgetary provision for housing and guarantee quick return of private developers’ investment in housing. Government must, as a matter of urgency, launch a continuous awareness programme to educate the low-income population on the value and the long-term benefits of the housing.


2020 ◽  
Vol 38 (3) ◽  
pp. 325-343 ◽  
Author(s):  
Andrew Ebekozien ◽  
Abdul-Rashid Abdul-Aziz ◽  
Mastura Jaafar

PurposeMalaysia's open registration system (ORS) scheme, which began in 1997, was established as part of prevention mechanism by the Ministry of Housing and Local Government to plug the leakage in the low-cost housing (LCH) allocation process. After two decades, ineligible persons still secure LCH to the detriment of the Malaysian low-income earners (LIEs) house-buyers/rentals. This paper explored the LCH computerised ORS for LIEs and proffered policy solutions to improve the scheme.Design/methodology/approachThe data were collected via unexplored exploratory sequential mixed methods approach that engaged 25 well-informed participants and the ‘quantilised findings’, validated by the Malaysian LCH policymakers.FindingsThis paper found that there is weak compliance to computerised ORS, which is pronounced in states with relaxed eligibility clearance. Also, it was found that under-declaration of income evident in states where there is relaxed verification and lack of data sharing between states and with federal governments, among others, are the root cause of weak compliance to computerised ORS.Research limitations/implicationsThis paper is limited to unravelling the encumbrances in the low-cost housing computerised open registration system in Malaysia's major cities. Future research is needed to use relevant information to access the level of enforcement of the computerised open registration system across the states of Malaysia.Practical implicationsThis paper recommended that LCH computerised ORS should be devoid of party favouritism, state government should establish functional LCH computerised ORS, and the state and federal governments, should embrace cooperative federalism. Also, applicants should be subjected to the Central Credit Reference Information System check, and culprits should be referred to the Malaysian Anti-Corruption Commission. This paper provides salutary lessons on how to improve the scheme with a view to achieving the Sustainable Development Goals regarding housing in 2030.Originality/valueThis paper demonstrates that the low-cost housing computerised open registration system in Malaysia is yet to be implemented across the states.


2016 ◽  
Vol 24 (5) ◽  
pp. 4-6 ◽  
Author(s):  
Vivek Kumar ◽  
Arpita Srivastava

Purpose This paper aims to describe an innovative recruitment campaign at HCL Technologies, India’s fourth largest information technology company. This campaign received media coverage in 60 national and international news outlets. Design/methodology/approach Using case study methodology, this paper explains how the unique process was carried out. Risks associated with the process are also identified. Findings It reveals that creative thinking and innovate practices can generate high social media engagement at a very low cost, while also fulfilling the task of recruitment. Managing risks inherent in the process is essential for reaping the rewards of this creative recruitment process. Practical implications The process described here can be emulated by other companies too. If executed well, rich dividends can be obtained at a modest cost. Companies can increase their engagement and brad equity at a low cost using this process. Originality/value The case study described here is unique in its approach toward recruitment and brand building.


2020 ◽  
Vol 36 (9) ◽  
pp. 17-18

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The review is based on “In search of the frugal innovation strategy” by Santos et al. (2020), published in “Review of International Business and Strategy.” This literature review paper concentrates on explaining that pursuing frugal innovation involves developing products and services, in a tightly resource-constrained environment, that are both affordable and sufficiently high quality to cater for low income consumers. Pursuing such a frugal innovation strategy is originated in emerging markets but can also translate across to developed markets and their value-seeking consumers. The study's results reveal that frugal innovation is most effective for executing innovation in products and processes. Original/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


2014 ◽  
Vol 21 (4) ◽  
pp. 421-443 ◽  
Author(s):  
Surangkana Trangkanont ◽  
Chotchai Charoenngam

Purpose – Numerous studies to date have demonstrated the public-private partnership (PPP) project procurement method's failure to deliver low-cost housing (LCH) to low-income groups (LIGs) in developing countries. The purpose of this paper is to investigate critical failure factors (CFFs), and how they cause the failure of PPP-LCH program. Design/methodology/approach – Grounded Theory methodology was used to gather and analyze the data in order to identify, categorize, and develop the logically causal relationships among CFFs that cause PPP-LCH program failure. Findings – Ten CFFs in various phases of PPP-LCH project life cycle caused PPP-LCH program failure. Some CFFs resulted from ineffective PPP policy and strategy, while some were beyond the control of the project/program management team. These CFFs were inter-/intra-related to one another in a particular way. Originality/value – Despite the increase in PPP-LCH projects/programs for LIGs in practice and the prevalence of failure, the studies of PPP-LCH project/program failure still suffer from insufficient conceptual clarity about the causes of these failures. The lessons learned, to some extent, help decision makers in both public and private sectors to reduce the probability of the PPP-LCH project/program failure by clearly explaining the nature of each CFF.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Glyn Atwal ◽  
Douglas Bryson

Purpose The conceptualization of the Base of Pyramid (BOP) proposes that low-income markets can lead to profitable opportunities for businesses. The purpose of this study is to identify key success factors of a BOP business strategy based on a case study of the discount retailer, Dollar General, in the USA. Design/methodology/approach The research design used in this research is an in-depth case study of Dollar General in the USA. Qualitative methods are applied in both the primary and secondary data collection and during the follow-on data analysis of Dollar General. Findings Dollar General’s strategic profile is achieved through the combination of the following four actions which are tailored to compete effectively at the BOP in the USA: creating the neighborhood discounter, raising aspirational appeal, reducing service and eliminating internationalization. Research limitations/implications The case is specific to Dollar General in a US cultural context. Practical implications The case of Dollar General demonstrates how a discounter retailer should not only follow a low-cost strategy to compete at the BOP. Its ability to craft a distinctive strategy is coherent with meeting the logistical, rational and emotional needs of the low-income consumer in the USA. Social implications Many businesses have neglected rural areas of the USA as being unprofitable. The ability for businesses such as Dollar General to serve the BOP segment can foster the socio-economic well-being of communities. Originality/value The overwhelming body of the BOP literature is based on emerging markets. To the best of the authors’ knowledge, this is one of the few studies to investigate BOP business strategy in the USA.


2015 ◽  
Vol 59 (12) ◽  
pp. 7197-7204 ◽  
Author(s):  
Kyle D. Smith ◽  
Beatrice Achan ◽  
Kathy Huppler Hullsiek ◽  
Tami R. McDonald ◽  
Laura H. Okagaki ◽  
...  

ABSTRACTCryptococcal antigen screening is recommended among people living with AIDS when entering HIV care with a CD4 count of <100 cells/μl, and preemptive fluconazole monotherapy treatment is recommended for those with subclinical cryptococcal antigenemia. Yet, knowledge is limited of current antimicrobial resistance in Africa. We examined antifungal drug susceptibility in 198 clinical isolates collected from Kampala, Uganda, between 2010 and 2014 using the CLSI broth microdilution assay. In comparison with two previous studies from 1998 to 1999 that reported an MIC50of 4 μg/ml and an MIC90of 8 μg/ml prior to widespread human fluconazole and agricultural azole fungicide usage, we report an upward shift in the fluconazole MIC50to 8 μg/ml and an MIC90value of 32 μg/ml, with 31% of isolates with a fluconazole MIC of ≥16 μg/ml. We observed an amphotericin B MIC50of 0.5 μg/ml and an MIC90of 1 μg/ml, of which 99.5% of isolates (197 of 198 isolates) were still susceptible. No correlation between MIC and clinical outcome was observed in the context of amphotericin B and fluconazole combination induction therapy. We also analyzedCryptococcussusceptibility to sertraline, with an MIC50of 4 μg/ml, suggesting that sertraline is a promising oral, low-cost, available, novel medication and a possible alternative to fluconazole. Although the CLSI broth microdilution assay is ideal to standardize results, limit human bias, and increase assay capacity, such assays are often inaccessible in low-income countries. Thus, we also developed and validated an assay that could easily be implemented in a resource-limited setting, with similar susceptibility results (P= 0.52).


2020 ◽  
Vol 18 (3) ◽  
pp. 431-459
Author(s):  
Lloyd Levine

Purpose The digital divide has persisted in California and the USA as a whole at approximately the same level for the past decade. This is despite multiple programs being created and billions of dollars being spent to close it. This paper examines why the efforts to date have been ineffective and to offers policy alternatives that might be more successful. Design/methodology/approach Using data from three, variable constrained projects in California, this paper examines the effectiveness of information-based outreach efforts at closing the digital divide. The projects tested various outreach and enrollment methods to see which, if any, could increase broadband adoption in low-income households. Findings This project found that providing low-income households’ information about low-cost broadband offerings was ineffective at closing the digital divide. The findings in this paper were similar to those of two other works that examined the federal Broadband Technology Opportunities Program (BTOP) grants under the American Recovery and Reinvestment Act. Practical implications The findings of this paper along with the works cited that evaluated the BTOP program should be enough to change public policy. For the past ten years, efforts to close the digital divide have focused on providing information to low-income households. However, two independent surveys show broadband adoption has remained virtually flat during that period. Social implications The digital divide brings concomitant economic and education harms and challenges that plague those unable to access information, services, educational and employment opportunities with the same ease, speed and sufficiency as their connected peers and neighbors. Those harms exacerbate the already existing education and income divides. This paper shows that without a change in strategy, those harms will persist. Originality/value This paper breaks new ground and addresses one of the weaknesses identified in existing research. To the best of author’s knowledge, this is the first paper of its type to use programs designed to generate data that can be empirically evaluated for effectiveness. Prior studies attempted to assess program effectiveness by using data generated from fully implemented government programs. However, those programs contained a vast number of unidentified variables and insufficient data collection. They were not designed to facilitate academic evaluation, and as such made a true effectiveness evaluation challenging.


2019 ◽  
Vol 19 (2) ◽  
pp. 126-148 ◽  
Author(s):  
Sheila Belayutham ◽  
Che Khairil Izam Che Ibrahim ◽  
Assrul Reedza Zulkifli ◽  
Norhati Ibrahim

PurposeThe purpose of this study is to develop a dual-functional university-enabled social innovation process model on the subject of low-cost houses that addresses the distinct elements of social obligation and university teaching–learning.Design/methodology/approachThis study has predominantly adopted a longitudinal single case study approach, where data have been collected through interviews, survey, participant observation, direct observation and document review. The case study details on the social innovation processes, which was conducted by Universiti Teknologi MARA, Malaysia.FindingsThis study has demonstrated the social innovation processes toward addressing the issue of insufficient low-cost houses, concurrently benefitting the teaching–learning dimension. Three sub-innovations have been highlighted in the developed social innovation process model, which are collaboration process, teaching–learning and design-construct innovation.Research limitations/implicationsBecause the study has been based on a single prototype project, further investigation is necessary to confirm the applicability of the full-fledged model. The established social innovation process model is also suggested to be tested in other social fields.Practical implicationsThe established social innovation process model has created a new perspective that enables universities to contribute in providing shelter for low-income families, simultaneously enhancing the teaching–learning dimension through experiential learning.Social implicationsThe dual-functional social innovation process model provides a synergistic relationship between the university and the society. Ultimately, the model could address social issues pertaining to low-income families with the built of low-cost houses, concurrently preparing graduates who are highly marketable, which could reduce the rate of graduate unemployment in the country.Originality/valueThe development of the social innovation process model for low-cost houses through university-enabled initiative is a novel establishment, particularly for developing nations, as limited studies have been conducted in this regard. The significant insights into how university could play a role in addressing major social issues, along with their core focus (teaching–learning and research development), is a breakthrough for further diffusions of social innovation by universities.


Sign in / Sign up

Export Citation Format

Share Document