Mapping the Enablers of Frugal Innovation and Firm Performance of Indigenous Innovation in Emerging Economies

Frugal innovation (FI) has the potential to address challenges faced by emerging economies, such as resource constraints, limited infrastructure, and diverse consumer needs. It serves as a powerful driver of growth for these economies by enabling resourceful solutions tailored to local contexts. Despite its significance, limited research has explored the enablers of FI and their influence on the firm performance of indigenous innovation. Addressing this gap is essential to better understand how firms in resource-constrained environments can achieve sustainable growth. Therefore, this paper establishes a hierarchical framework illustrating the relationships between the identified enablers of FI and the firm performance of indigenous innovation. This study employs modified total interpretive structural modeling (m-TISM) and MICMAC (Matrice d'impacts croisés multiplication appliquée á un classment) analysis to analyze these relationships. By consolidating existing literature, this research draws general conclusions and builds a five-level hierarchical model impacting FI and firm performance of indigenous innovation. The study classifies enablers into three quadrants: independent (resource-constrained environment, prosocial motivation, consumer income, frugal design principles, and collaborative culture), dependent (frugal innovation and firm performance of indigenous innovation), and linkage factors (frugal creativity, knowledge integration, and bricolage capability). The study offers valuable insights for practitioners and academicians into the interconnections among identified enablers, their impact on FI, and the firm performance of indigenous innovation.