Frugal Innovation: Organisational Climate and Culture

This chapter examines the mechanism of embedding Frugal innovation (FI) into organisational culture, and the reciprocal relationship between the latter and organisational climate, and how the interact to influence behaviour and relationship at the organisational level. FI encompasses flexibility and adaptability of mindset, process, and outcome/products. A mindset that is able to turn adversity and limitations into opportunities is essential for FI. Low-income customers or producers are the primary targets of FI; as such, the core customer base of this innovation is in the developing economies. One of the major means by which values and beliefs are embedded into organisational culture and perpetuated as the way of life of the organisation is through the teaching and communication of these values to members of the organisation. Leadership has tremendous influence on organisational culture, and can also influence organisational climate significantly.