Impact of frugal innovations on the social entrepreneurship of Multinational enterprises (MNEs) in developing countries


Aims: The current research is conducted to analyze the impact of frugal innovation on the social entrepreneurship of MNEs in developing countries. The study also aims to identify the effect of economies of scale as the mediating factor between frugal innovation and MNEs.

Method/design: The study is based on a primary quantitative method in which the responses of 200 participants were collected through a survey questionnaire on a 5-point Likert scale.

Findings: Statistical analysis showed a high correlation between the affordability of frugal

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Frugal innovation is defined as new products that are low in cost, created with methods and designs that require less cost and target the specific main feature of the product (Hossain, 2018). After the introduction of frugal innovation, many sectors like manufacturing, automobiles, food, and healthcare started working on this innovation. Frugal innovation is a flexible approach, not a new strategy of thinking about utilizing sustainable resources. The developed world has started using frugal innovation to decrease government spending (Prabhu, 2017). Experts call it the entrepreneur’s mindset to make an innovative product using minimum resources.

A person that takes the challenge and has the potential to solve problems in the community is known as a social entrepreneur (Petrovskaya & Mirakyan, 2017). Social entrepreneurship is a company’s venture to solve social issues and is willing to take the initiative for positive change in society (Saebi, Foss & Linder, 2019). Social entrepreneurship companies are mostly working for the betterment of society and are not focusing too much on making huge revenue.

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