Measuring frugal innovation capabilities: An initial scale proposition

This paper proposes an initial scale to measure the frugal innovation capabilities within organizations. Our scale comprises three major dimensions: (1) focus on core functionalities, (2) substantial cost reduction, and (3) shared sustainable engagement. We adopted the frugal innovation efficiency-driven perspective based on both the resource-based and the capability-based views. From primary survey data of 1,097 companies in three countries (Brazil, India, and the USA), we developed a reliable and valid scale to measure frugal innovation capabilities comprising ten features with clear psychometric properties. We also contribute to the innovation research literature by revisiting its main texts and proposing a concept of frugal innovation capabilities. In doing so, we introduce an initial measuring instrument. Such an initiative represents an advance in the literature to better understand the development of frugal innovation, guiding the exploration of frugality-based advantages. It enables managers to identify the organizational capabilities that are needed to increase the odds of developing frugal innovations. This is a first attempt to measure the concept of frugal innovation capabilities. There is much room for the exploration of its other dimensions.