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This research aims to answer the following question: Could bricolage become a capability for companies in emerging markets to develop frugal innovations in times of crisis? Therefore, in this paper the main aim is to identify whether in times of crisis the development of frugal innovation in emerging markets depends on the bricolage capability.

The hypotheses were statistically tested using the structural equation modeling technique, with data collected through the survey method applied to 215 companies in Brazil.

The results allowed support for the hypothesis that bricolage capability has a positive impact on the development of frugal innovation. Therefore, a mediating test was verified, allowing confirmation that to develop frugal innovation in emerging markets, bricolage becomes a required capability for companies in times of crisis.

The limitation of this study lies in considering the effect of bricolage on frugal innovation only in the context of Brazil, while in developed countries this effect may be similar, as they also suffer from resource constraints caused by crises.

This research provides insights to guide managers by highlighting bricolage as a key managerial capability for the development of frugal innovation. A set of managerial recommendations are provided based on bricolage skills.

The study has contributed to the literature on bricolage and frugal innovation by addressing bricolage as an antecedent of frugal innovation in emerging markets, especially when those markets are affected by resource scarcity.

Is the development of local innovation capabilities enough for foreign subsidiaries in emerging markets to be able to integrate into global R&D projects? The authors argue that it is not. The purpose of this paper is to show the central role of R&D capacities when it comes to inserting foreign subsidiaries in emerging markets into global R&D projects.

The study investigated 131 foreign multinational subsidiaries operating in Brazil. For each subsidiary, the authors surveyed two to five directors or C-level executives from innovation, R&D, engineering, product development and projects. the authors used structural equation modeling for analysis.

The results indicate that product and process innovations alone do not guarantee the insertion of the emerging market subsidiaries into global innovation projects. Such insertion depends on the subsidiary’s accumulation of R&D capacities.

The results reinforce the central issue of building product and process innovation capabilities as the first step toward a blueprint for global projects. However, the effort is not limited to these initiatives. Product and process innovation efforts need be reverted in headquarters’ eyes in order for subsidiaries to gain R&D center status. To achieve this, subsidiaries must align their technological innovations with multinational corporations’ innovation strategies.

In authors’ view, this study contributes to the literature in three main areas: the evolutionary process of innovation capability in subsidiaries, the reverse innovation debate and the discussion of subsidiaries’ initiatives.

The objective is to determine if there are groups of subsidiaries that are different in regard to the implementation of strategies, structures, and processes and the transfer of marketing knowledge in emerging markets.

A survey with 101 largest foreign subsidiaries located in Brazil was conducted. The data collection process was conducted online and by telephone.

Three subsidiary groups based on the configuration of their international marketing activities were characterized: Cluster 1, called “Subsidiary with Knowledge Marketing Activities”; Cluster 2, called “Subsidiaries with Global Marketing Activities”; and Cluster 3, called “Subsidiaries with Local Marketing Activities.” Compared to the two other groups, Cluster 1 is the group with the minor number of companies, but it has a better strategic performance than other clusters.

This study was developed in only one emerging country, Brazil, and with 101 subsidiaries from MNCs. This could be extended to other countries, such as China, Russia, India, and Turkey and with more subsidiaries. Related to the construct measurements, one limitation is the qualitative measure of performance.

Subsidiaries that work with global marketing should pool their efforts to create and transfer marketing knowledge to improve their performance. Subsidiaries with local marketing activities may even perform more satisfactorily in the short term, but they should concern to contribute to the overall competitive edge of the corporation.

The discussion about marketing in emerging markets and the way in which the transfer of marketing knowledge can be reflected in the performance.