Hanna Nari Kahle, Anna Dubiel, Holger Ernst and Jaideep Prabhu
The aim of this paper is to examine the impact of frugal innovation in the fields of livelihood provision, education, infrastructure, and distribution networks on state-building…
Abstract
Purpose
The aim of this paper is to examine the impact of frugal innovation in the fields of livelihood provision, education, infrastructure, and distribution networks on state-building in countries where a significant proportion of the population lives at the base of the pyramid (BoP).
Design/methodology/approach
The paper reviews the literature on frugal innovation, democratization and state-building, offers practical examples in support of the conceptual arguments, and provides research propositions for empirical assessment.
Findings
The paper provides support for the notion that the creation of more inclusive markets through frugal innovation contributes to socio-economic development, which in turn strengthens democratization and state-building.
Practical implications
Multinational corporations can have a positive impact on democratization by offering for-profit products and services to serve BoP markets.
Originality/value
The paper provides novel insights into the role that frugal innovation plays in state-building and democratization.