How to identify frugal innovation: make it relative and contextual

Purpose The purpose of this paper is to address the relative and contextual character of frugal innovation (FI) and provide a framework to improve its identification. Although some core characteristics typify the definition of FI and a growing body of literature is empirically studying the phenomenon, there is a lack of clarity and transparency around how its identification is being analytically performed. In addition, FI seems to be implicitly taken as a relative construct, with frugality being gauged, often tacitly, in comparison against an existing conventional benchmark. This study argues that making relativeness explicit is central to the interpretation of FI, because whether and why an innovation is frugal is context dependent. Design/methodology/approach A multi-method research approach was used, consolidating three analytical elements from 1) an umbrella literature review, 2) an abductive analysis of 28 innovation cases, and 3) six paired interviews with FI experts. Findings This study proposes a framework to operationalize the qualitative identification of FI cases making its relative nature explicit, focusing attention on the context where the innovation is embedded and incorporating a local mainstream benchmark. Originality/value This paper provides one practical tool that enables researchers and practitioners to conduct a coherent and contextually grounded identification of what constitutes a case of FI and why, contributing to the evolution of FI at conceptual and practical level. Its proposal can be of interest for scholars, entrepreneurs and managers that are intrigued by FI and other types of alternative innovations such as social and inclusive innovation, which face similar research ambiguities.