An Indirect Metric of Frugal Innovation From Product, Open, Cost, and Sustainable Innovation Scales

Frugal innovation (FI) has challenged management to think beyond small cost-based improvements in existing products or services, favoring the redesign and reconfiguration of resources, skills, and expertise. FI often goes hand in hand with models of more socially sustainable innovation. Product innovation approaches in emerging markets try to overcome resource constraints while meeting the demand for lower-priced products. The reliability of each dimension was measured by the composite reliability coefficients and Cronbach’s alpha. In turn, validity tests included the use of convergent and discriminant validity. The nature of the FI process was represented in this research using two constructs: innovation in cost and open innovation. The developed model contributes to the understanding of how FIs manifest themselves, showing a new perspective to measure frugality by combining the dimensions presented in this research. This research also helps to outline how a frugal strategic orientation is formed, avoiding conceptual overlaps.