In the early 2000s, the German government introduced the Hartz reforms, which deregulated German labor markets. These reforms were praised internationally as striking a balance between job growth and productivity growth. While macroeconomic research has shown that the reforms have indeed lowered German unemployment, their effects on labor productivity need to be better understood. This paper addresses the impact of temporary agency work (TAW) on German labor productivity during 2010–2019, based on data from a firm-level panel of the German Institute for Employment Research (IAB). It contributes to the rising number of firm-level studies by extending their results in a broader temporal perspective, during which TAW intensities have increased substantially, especially in TAW-using firms. The system generalized method of moment (GMM) estimations based on a firm-level data set with 13,197 observations for the period 2010–2019 show that a robust hump-shaped relationship exists between the extent of TAW and the firms’ labor productivity. We find that the increase in the use of TAWs following the Hartz reforms has, on average, positively contributed to labor productivity growth in German firms. However, the findings also show that if numerical flexibility is increased too much, productivity growth in Germany will suffer. This is particularly the case for several industrial sectors that are important in the German economy. These results are important given recent calls for more labor market flexibility to help firms grow in an increasingly turbulent global economy.@en

While many climate activist groups enthusiastically advocate for the removal of fossil-fuel subsidies, we argue that this overstates both the climate effectiveness and political feasibility of such a strategy. Through synthesizing information from various global studies, we show that subsidies contribute to a relatively small portion of climate change and local externality problems, likely accounting for around 1%. We further argue that reform of fossil-fuel subsidies is hampered by various political and social factors, more so than the diffusion of carbon pricing. Based on these results, we argue that the far greater problem of unpriced externalities warrants a redirection or expansion of the enthusiasm for subsidy reform toward carbon pricing. This makes sense also as subsidy reform and carbon pricing essentially represent two sides of the same coin since both contribute to climate mitigation by raising fossil-fuel prices.@en

This paper investigates how a multinational enterprise (MNE) engages in frugal business model innovation to find the optimal balance between value creation and value capture in resource-constrained contexts in sub-Saharan Africa. Using qualitative content analysis, we analyse the case of Community Life Centres (CLC), a primary healthcare innovation developed by Royal Philips N.V., a multinational technology organisation headquartered in The Netherlands. Our findings show that an MNE can innovate by developing multiple iterations of the same business model—customising it to different geographical markets. Some aspects of the business model remain static, while others are dynamic. In this regard, the innovation process in a resource-constrained service sector is pegged on the financing model, and target markets are adjusted based on financial opportunities available, while the value proposition and costing mechanisms remain relatively static. This paper contributes new insights to the frugal innovation and business model innovation literature.@en

Reverse innovation (RI) is considered as an innovation originally designed and developed for low-income customers living in severely resource-constrained environments in emerging and developing countries’ markets, with the potential to be diffused in developed markets. After more than a decade of academic studies, the potential role of RI in creating higher impact global innovations has progressively advanced. With the upsurge in research on RI, there is a need for scholars and business practitioners to retrospectively reflect on existing/current research state and prospect for future research directions. In this article, we examine the existing conceptualization and research landscape of RI to further identify and map future research directions. First, through a bibliometric review of a decade of research (2009–2019), we provide insights into the evolution of research topics in the field of RI including the identification of main research streams, influential scholars and works, important scholarly associations, and collaborative networks. Second, we combine these bibliometric findings with structural hole theory, weak ties, and social network analysis to derive future research lines on RI.@en

Recent theoretical advances hold that platforms comprise a second strategic dimension next to size, called identity, which describes the platform's technological and market scope. Letting go of platform size as the main criterion for platform value opens the possibility for platforms to pursue differentiation strategies with a distinct market positioning. The concept of optimal distinctiveness (OD) implies that differentiation can be optimized so that it maximizes performance. In this paper, we draw on recent OD research in and outside of the field of platforms and elaborate on the role of platform size within the distinctiveness framework. We discuss platform size and identity in the context of OD and suggest propositions for future research. The paper contributes to the management of platforms and OD in platform markets by showing how a platform's distinctiveness strategy may depend on its size. We contribute to platform management across various platform sizes and to research on OD in platform markets.@en

This chapter sets the scene for the Handbook on Frugal Innovation. First, it describes the origins of the concept of frugal innovation and its emergence as an academic field of interest. Then, main drivers behind frugal innovation are explored. From the scholarly discussion on frugal innovation major themes are distilled that inform the structure and contents of the Handbook. The final part of the chapter presents the structure of the Handbook and the chapters of the Handbook are briefly introduced.@en

This chapter’s aims to link frugal innovation (FI) to some theoretical notions. First, it presents a brief overview of what FI is in order to identify characteristics that can be linked to theoretical notions. Second it links the concept of FI to 1) existing theoretical notions on profit-induced innovators and how these contribute to economic development and transformation, and 2) a conceptual way of thinking based on social entrepreneurs and their motives and opportunities to overcome resource constraint by designing and developing frugal innovation. Two takeaways on furthering theoretical attempts to understand frugal innovations are presented. The first one is working out of Comprehensive Schumpeterian models where dynamic patterns of polycentric innovation networks can be examined thoroughly. The second way is working further on the role of (networks of) social entrepreneurs as frugal innovators and providing them a broader validity.@en

This pioneering Handbook details the origins of the concept of frugal innovation, its emergence as an academic field of interest, and the driving forces behind it. It presents new empirical evidence and critical perspectives on what frugal innovation entails, from a range of disciplines including science and engineering, humanities, and the social sciences.

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This article presents data on companies' innovative behavior measured at the firm-level based on web scraped firm-level data derived from medium-high and high-technology companies in the European Union and the United Kingdom. The data are retrieved from individual company websites and contains in total data on 96,921 companies. The data provide information on various aspects of innovation, most significantly the research and development orientation of the company at the company and product level, the company's collaborative activities, company's products, and use of standards. In addition to the web scraped data, the dataset aggregates a variety firm-level indicators including patenting activities. In total, the dataset includes 21 variables with unique identifiers which enables connecting to other databases such as financial data.

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Four extensive literature reviews on factors for innovation success in terms of market, strategic and social impact for additive manufacturing were performed where the focus lies on three levels of analysis; (inter)organizational, business model, and project.@en

This chapter examines the question under what conditions frugal innovations can be considered as a responsible innovations. Frugal innovations are (re)designed products, services or systems at substantially lower costs as compared to ‘standard’ products, services or systems but without sacrificing user value, aimed at markets in developing countries. A responsible innovation is an innovation in the development and production of which ethical and social elements have been taken into account. Besides affordability and technological achievability successful frugal innovations are characterised by scalability. These characteristics do not automatically resemble the ethical and social elements that characterise responsible innovations. The central question in this chapter is examined in terms of two phenomena, (1) social standards, and (2) inclusion of low-income consumers. The case of frugal weather stations is used as an illustration. The conclusions report that (1) an optimal level of social standard – and hence responsibility – exists, and (2) polycentric innovation – including low-income producers/entrepreneurs and consumers in the international value chain – is a way to make frugal innovations inclusive and hence responsible. The mechanisms are the reduction of (1) instability in the product development process and of (2) the unreliability of existing technological and institutional infrastructures. @en

Frugal innovation and related concepts are receiving increasing scholarly attention. While recent progress in the conceptualisation of frugal innovation as a phenomenon has been considerable, insights into the antecedents of frugal innovation remain relatively poor. We add to this literature by systematically conceptualising, theorising and empirically testing the relationship between resource constraints and the propensity of firms to produce frugal innovations, drawing on concepts of problemistic search and opportunity recognition. We distinguish two levels of resource constraints (firm-level and firm environment-level), and two types of frugal innovation (internally oriented and customer-oriented), while using managerial experience as a moderating internal factor. We find that firm-level resource constraints have a strong effect on the propensity of firms to engage in internally oriented frugal innovation, although only so for firms with experienced managers. This effect is lower when these firms operate in an environment that also faces high constraints. We find no effect of resource constraints on customer-oriented frugal innovations, but find a surprising negative moderating effect of managerial experience. We discuss the theoretical and policy implications of these findings for the frugal and wider innovation literature. This study is the first large-scale empirical investigation of frugal innovation that estimates its prevalence. We find that frugal innovation is quite common when using the widest definition of frugal innovation. The majority of frugal innovations are mundane internal efficiency upgrades through capital investment.

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While consumer and marketing research in developed markets is an established field, research on consumers in an Bottom of the Pyramid (BoP) setting is less established and mostly conceptual or qualitative. This paper examines the individual heterogeneity and the local context of BoP consumers with an empirical study on consumption of low cost bottled water on the Kenyan coast and the capitals of Uganda and Rwanda. The empirical analysis builds on existing research exploring consumer behavior, and it studies a database of 713 bottled water consumers in Kenya, Uganda and Rwanda. Consumers with a higher level of education were less likely to be late consumers. Additionally, early consumers were more likely to purchase due to a purposeful search for a bottled drinking water solution. Since we control for location specific effects we highlight the importance of supply driven consumption in the BoP market. Furthermore, the results suggest that the two water companies may not be reaching their targeted low-income consumers but rather middle class consumers. The research contributes to the larger BoP debate by presenting evidence that consumers in a BoP setting may purchase more on the basis of supply of a product rather than other socio-demographic factors such as income.@en

Knowledge resources, mainly due to their causal ambiguity and inimitability, play a central role in shaping the competitive advantage of organizations. This chapter aims to illustrate a correspondence between knowledge types and organizational types in open innovation (OI) networks. It maps the knowledge types that shape diverse institutions of the economy as presented by the Triple Helix model: episteme at the academia, techne at the industry, and phronesis at the government. Each organization - beyond its institutional knowledge specialization - diversifies to incorporate the other two knowledge types in its knowledge integration portfolio. For example, a university may develop technologies and conduct responsible research and/or a firm may conduct scientific research and engage in corporate social responsibility activities. The implications of these institutional specialization and organizational diversification in OI networks are twofold: (a) organizations can gain a competitive edge by diversifying into a unique portfolio of knowledge integration encompassing a novel proportion of episteme, techne, and phronesis and (b) to achieve the highest level of knowledge integration, organizations belonging to diverse institutions can engage in inter-organizational knowledge sharing to meta-integrate their institutionally specialized and organizationally diversified knowledge types.@en

Organizations collaborate with external actors in order to acquire knowledge resources they cannot develop internally for economic and/or technical reasons. Mode 2 and Triple Helix models have examined the role of different organizational types in collaborative creation and knowledge use. This paper is an empirical investigation on whether universities differ from business-oriented or industrial organization types with regard to the extent of their knowledge collaborations. Using SEM methodology, it demonstrates the role of universities in knowledge collaboration through a survey of 472 organizations in the 7th Framework Programme for Research and Technological Development of the European Commission, Energy theme (FP7-Energy). In line with the Triple Helix model, universities are found to exhibit more extensive knowledge collaboration than businesses. Also, between-university collaborations are found to be more extensive knowledge collaboration relationship types than between-business relationships. The findings imply that (1) publically funded consortia should be aware that universities are more conducive and hence more effective in inter-organizational knowledge collaboration networks than other organizational types, particularly compared to for-profit business organizations. Universities should be included in these consortia. (2) Business organizations that do not have an extensive relationship with universities need to reconsider their partner portfolio and extend the knowledge collaboration of their network by connecting to more universities.(3) Policymakers should not only involve academic organizations but also include groups of more than one university per consortium to enable between-university knowledge collaboration to boost collaborative knowledge exploration and exploitation of the consortia.

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Purpose: This paper aims to explore the relationships between participants’ perceived benefits of sharing knowledge privately, within a group or with the general public within an organisational knowledge network. The quality and quantity of knowledge shared are explored in relation to the level of knowledge sharing visibility (both content and participants’ profiles). Design/methodology/approach: A research framework of perceived benefits of knowledge sharing is designed; survey and content analysis are used to explore influences of perceived benefits on the quantity and quality of knowledge shared by participants for each level of knowledge sharing within an organisation. The research model is empirically tested using a questionnaire survey with 205 participants and content analysis of their contributions in a high-tech corporate group. This study uses the partial least squares path-modelling method to explore relationships between constructs of the research model. Findings: The current research results show that intrinsic benefits are more influential than extrinsic benefits for private knowledge sharing, while extrinsic rewards play an important role at the public knowledge sharing within organisations. In addition, results indicate that both the quality and quantity of knowledge sharing at the group-level knowledge sharing are significantly higher than at the private and the public levels. Practical implications: Contemporary knowledge management systems are developed by integrating communication channels in different visibility levels of knowledge exchange. Managers of knowledge management systems are advised to use the research outcome for developing incentive strategies in different levels. Originality/value: In contrast to previous studies that focus on only one level of knowledge sharing, this paper explores relationships between perceived benefits of knowledge sharing with the quantity and quality of shared knowledge for three distinct levels of knowledge sharing.

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This article explores which private moneys qualify as (disruptive) social innovations. A case study into 30 Dutch-based complementary currencies and cryptocurrencies was conducted to understand the functioning of different designs of private money systems as well as the motivations and objectives of involved social innovators. We conclude that private moneys generally can be qualified as social innovations but that their potential for disruptiveness is limited by design. It is the externalities that come with the public and network nature of monetary systems that are likely to impede disruption by private (digital) moneys.

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Bringing value to end consumers is one of the main challenges for businesses in emerging markets. This paper examines the role of information technology (IT) advancements in frugal innovation and in influencing new business models to bring frugal innovations within reach of the poor. A thorough review of theoretical concepts of business models and their applicability to the Bottom-of-the-Pyramid (BoP) literature and frugal innovation is given. IT has three characteristics that have influenced both business models and frugal innovation. First IT reduces transaction costs, sensor prices have decreased, and IT's externalities have increased the economic and social value from one innovation. By discussing the case of a high-technology low cost weather sensor system deployed in sub-Saharan Africa, this paper demonstrates how IT has introduced new frugal innovations, and influenced new business models. The success of the weather station diffusion has been due to the value of the weather data generated, the adaptive business model, and the co-creation approach throughout the station and business model design. IT has played a strong part in diffusing new innovations in Africa, but also has the potential to exclude certain groups. Future research should explore how IT and frugal innovation can lead to inclusion.

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This paper examines frugal innovations as processes, products and systems that affect the resource constraints that are typical for many developing countries. The focus is on the impacts of mobile phone technology-induced frugal innovations’ on the resource constraints and how these influence productivity, public services provision and inclusiveness. The effects are illustrated with the help of the case of the M-Pesa payment system and more specifically two particular services that use M-Pesa, i.e. Kilimo-Salama, an agricultural microinsurance through mobile phones and M-Farm, market access services for small farmers. The results reveal positive impacts on private sector productivity and public services provisions due to, among others, reduction of transaction length and hence costs. With regard to inclusiveness it is likely that in the short term the application of IT-induced frugal innovations will not be inclusive. In the longer term the inclusiveness of these innovations can be expected to increase.

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