Business Models for Frugal Innovation in Emerging Markets: The Case of the Medical Device and Laboratory Equipment Industry |
| |
Institution: | 1. Jacobs University, School of Mathematics and Logistics, Campus Ring 1, 28759 Bremen, Germany;2. University of Oldenburg, School of Educational and Social Science, Faculty 1, we.b, D-26111 Oldenburg, Germany;1. Instituto de Economía, Facultad de Ciencias Económicas y de Administración, Universidad de la República, Joaquín Requena 1375, CP. 11200, Montevideo, Uruguay;2. Comisión Sectorial de Investigación Científica (Academic Unit), Universidad de la República, Juan D. Jackson 1303, CP. 11200, Montevideo, Uruguay;3. Unidad de Sociología de la Salud, Departamento de Medicina Preventiva y Social, Facultad de Medicina, Universidad de la República. Dr. Alfredo Navarro 3051, CP. 11600, Montevideo, Uruguay;1. LUMSA University, Rome, Italy;2. University of Insubria, Varese, Italy;3. CrESIT - University of Insubria, Varese, Italy |
| |
Abstract: | This study investigates business models for frugal innovation (i.e. a specific form of resource-constrained innovation) in the medical device and laboratory equipment industry in the context of emerging markets. Based on original data from five case studies, we investigate how firms can set up value creation and value capturing mechanisms to reach new customer segments in remote rural areas with unprecedented value propositions. With this research, we contribute to the literature on frugal innovation and business models in emerging markets. It is among the first empirical studies to apply a fine-grained perspective on resource-constrained innovation in emerging markets. In doing so, we focus on its most disruptive form, which is when these innovations entail entirely new applications. We advance and detail the value proposition for frugal innovation in these industries and argue that frugal innovation create new markets. Further, we show how firms set up their value creation and value capturing mechanisms to achieve the value proposition and identify two distinct Research & Development (R&D) strategies for frugal innovation. |
| |
Keywords: | Business models Resource-constrained environments Frugal innovation Emerging markets Medical device industry Western multinationals corporations (MNCs) Emerging market firms |
本文献已被 ScienceDirect 等数据库收录! |
|