Leveraging frugal innovation in micro- and small enterprises at the base of the pyramid in Brazil: an analysis through the lens of dynamic capabilities

What is it about?

Micro- and small enterprises (MSEs) at the base of the pyramid (BOP) are significant both in terms of their quantity and their social impact on the BOP itself. This paper analyzed the factors that influence frugal innovation in micro- and small enterprises (MSEs) at the base of the pyramid (BOP) through the theoretical lens of dynamic capabilities. The input-process-output (I-P-O) framework was used as a tool to support the analysis of frugal innovation as a process. We contribute to the academic discussion by identifying different frugal innovation approaches as well as factors that impede and promote frugal innovation according to the targeted consumer segment within the BOP: extreme poverty and subsistence or lower- and middle-class consumers.

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