Co-creating frugal innovation at the bottom of the pyramid

Frugal innovation, characterised by affordable, cost-effective, resource-efficient solutions, has become increasingly significant for addressing the needs of the Bottom of the Pyramid (BoP) in emerging markets. It necessitates concerted efforts by key stakeholders with the shared goal of co-creating new solutions to enhance the quality of life at the BoP. However, the exploration of co-creation in devising affordable solutions for the underserved BoP market is limited in the literature. This study explores how entrepreneurs collaborate with key stakeholders to co-create frugal innovations for the BoP customers in an emerging market. We employed a multiple case study approach to address the research question. Analyzing data from 12 start-ups, including 43 interviews, our findings revealed the collaboration mechanisms in the frugal innovation process addressing BOP needs. We also demonstrate how start-ups form collaborative networks co-create frugal innovations, overcoming multiple constraints by utilising shared resources, knowledge, and capabilities. Furthermore, we reveal the key outcomes of frugal innovations. The findings advance the frugal innovation literature by incorporating co-creation as a strategic approach to addressing innovation challenges at the BoP. We extend both co-creation and frugal innovation literature by stressing the significance of co-creation in identifying problems, understanding complex scenarios, and devising affordable solutions.