Purpose

This paper aims to analyse the factors that influence frugal innovation (FI) 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 FI as a process.

Design/methodology/approach

A multiple case study was performed with 25 MSEs at the BOP in Brazil, all of which were in the food industry.

Findings

This study indicates that dynamic capabilities are present in enterprises that are migrating to low income and middle-class consumers, which influences their FI practices. To analyse FI in the context of MSEs at the BOP, the I-P-O framework was adapted. Enterprises that have focussed on extremely poor and subsistence markets develop more disruptive innovation, aiming to reduce the final prices they charge consumers. The primary focus of these enterprises is on maintaining ordinary capabilities. Enterprises that have focussed on low income and middle-class customers have implemented incremental innovation, adding value based on colonial tastes and close relationships with their consumers. Such a strategy demands changes in the physical facilities, use of social media and investment in quality control of these enterprises. Considerations for policymakers and institutions are also presented.

Originality/value

The use of a dynamic capabilities lens in such a context is a new approach and provides a relevant basis for further studies. The study has identified different approaches to FI and different sets of barriers and successful practices, both related to the target market segment, that could leverage FI. This study contributes to case studies from Brazil, spreading the research context beyond Asia.

中文翻译：

---

利用巴西金字塔底部的微型和小型企业的节俭创新：从动态能力的角度进行分析

目的

本文旨在通过动态能力的理论视角分析影响金字塔底部微型和小型企业 (MSE) 节俭创新 (FI) 的因素。投入-过程-产出 (IPO) 框架被用作支持将 FI 作为一个过程进行分析的工具。

设计/方法/方法

对巴西 BOP 的 25 个 MSE 进行了多案例研究，所有这些 MSE 都在食品行业。

发现

这项研究表明，正在向低收入和中产阶级消费者迁移的企业中存在动态能力，这影响了他们的金融机构实践。为了在 BOP 的 MSE 背景下分析 FI，调整了 IPO 框架。专注于极端贫困和生计市场的企业开发更具破坏性的创新，旨在降低他们向消费者收取的最终价格。这些企业的主要重点是维持普通能力。专注于低收入和中产阶级客户的企业实施了渐进式创新，根据殖民品味和与消费者的密切关系增加价值。这样的战略要求改变这些企业的实体设施、社交媒体的使用以及对质量控制的投资。

原创性/价值

在这种背景下使用动态能力镜头是一种新方法，并为进一步研究提供了相关基础。该研究确定了不同的 FI 方法以及不同的障碍和成功实践，两者都与目标细分市场相关，可以利用 FI。这项研究有助于巴西的案例研究，将研究背景传播到亚洲以外。