Tackling grand societal challenges: Understanding when and how reverse engineering fosters frugal product innovation in an emerging market

Samuel Adomako, Michael Asiedu Gyensare, Joseph Amankwah-Amoah, Pervaiz Akhtar, Nazim Hussain

kHUB post date: May 21, 2024
Originally published: May 19, 2023 (PDMA JPIM • Vol 41, Issue 2 • March 2024)
Read time: 45 minutes

Access the Full Article

Societies are confronted with grand challenges that require the efforts and coordination of diverse stakeholders. In this context, the role of for-profit organizations has become vital in addressing such challenges. Drawing on the strategy tripod perspective, this study investigated the influence of reverse engineering on frugal product-innovation performance (PIP) through the mediating effect of frugal innovation (i.e., cost innovation, and affordable value innovation). In addition, we examined the moderating impact of the industry environment (i.e., technological turbulence) and institutional context (i.e., legal inefficiency) on this relationship. We tested our hypotheses using time-lagged data from 243 small to medium-sized enterprises (SMEs) in an emerging economy—Ghana. Results from our analyses show that several of our hypotheses are supported which offers important implications for the indirect impact of reverse engineering on frugal product-innovation performance in the context of resource-constrained emerging markets. These findings extend the grand challenges, strategy, and innovation literature.

Practitioner points

• Reverse engineering positively affects cost innovation and affordable value innovation (AVI) in emerging markets.
• The influence of reverse engineering on cost innovation is amplified when technological turbulence is high.
• Technological turbulence attenuates the impact of reverse engineering on AVI.
• Legal inefficiency in emerging markets strengthens the impact of reverse engineering on AVI.
• The effect of reverse engineering on frugal product-innovation performance is mediated by cost innovation and AVI.

What did you think of this post?

Start a conversation with your peers by posting to our kHUB Discussion board! Browse trending posts and reply to other thought leaders OR start your own discussion by clicking "Post New Message."

Start a Discussion

If you don't have an account with us, create a guest account or become a member today and receive exclusive access to all PDMA member benefits. Please note that both members and non-members are welcome to participate in the kHUB.

Related Content