Frugal Digital Transformation in SMEs: Low-cost solutions for high-impact outcomes

Frugal Digital Transformation is a new, emerging paradigm of low-cost innovation. It integrates the concept of frugal innovation with the practices of digital transformation to allow for novel, yet affordable and impactful innovations in products, services, processes, platforms, and business models. This paper highlights frugal digital transformation in the context of three SMEs in the U.K., Canada, and India. The paper follows a qualitative research approach using the multiple case study method to explain how SMEs conduct frugal digital transformation. It sheds light on the underlying digital mechanisms and business processes that enable transformation. The research informs the current literatures on frugal innovation, digital responsibility, and digital transformation. It provides insights to practitioners about the benefits and pitfalls of this type of innovation. It also lays a foundation for future research in this domain.