American International Journal of Research and Innovation

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Frugal Innovation and Entrepreneurship in Resource-Constrained Markets: An Integrated Framework for Scalable Value Creation

Author(s) Joliber M. Caminong
Country United States
Abstract Resource-constrained markets in emerging economies represent both severe operational challenges and profound entrepreneurial opportunities. Traditional research and development (R&D) paradigms, designed primarily for capital-abundant contexts, frequently fail to penetrate low-income demographics due to high unit costs, excessive feature complexity, and fragile infrastructure dependencies. This study develops an integrated conceptual and analytical framework for frugal innovation and entrepreneurship in resource-constrained environments. The framework synthesizes cost-core architectural redesign, institutional bricolage, eco-systemic value co-creation, adaptive distribution models, and strategic governance. Using a simulation-based research design, the paper evaluates how advancing through tiers of frugal entrepreneurial maturity—from ad-hoc improvisational hacks to structured frugal engineering and integrated ecosystem execution—influences overall organizational capability.
A composite Frugal Entrepreneurial Capability Index (FECI) is introduced to operationalize venture readiness across five core dimensions. Simulated results demonstrate that transitioning to an integrated frugal ecosystem elevates the composite index from 47.0 to 86.0, yielding substantial gains in scalable value delivery and architectural cost efficiency. Furthermore, the paper analyzes structural risk profiles across early, growth, and scale-up venture stages, emphasizing that long-term frugal viability requires institutionalizing resource constraints into core strategic capabilities rather than viewing them merely as temporary market barriers.
Keywords frugal innovation; resource-constrained markets; entrepreneurship; institutional bricolage; frugal engineering; bottom-of-the-pyramid (BoP); sustainable growth; emerging economies.
Field Engineering
Published In Volume 2, Issue 4, July-August 2020
Published On 2020-08-31
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