Frugal business model innovation in an Indian emerging market: a multiple case study

PurposeThis multiple case study aims to investigate the frugal business model innovation exemplified by three pioneering organisations in India: Aravind Eye Care System (AECS), ChotuKool and SELCO India. This study elucidates the key factors contributing to their success and explores the broader implications for frugal innovation in addressing societal challenges in emerging markets.Design/methodology/approachThe authors use a qualitative case study methodology to analyse the approaches of AECS, ChotuKool and SELCO India towards product development, distribution strategies and financing mechanisms and their impact on underserved communities. Data is collected through archival research and analysis of secondary sources.FindingsThe findings of the study reveal common themes and unique characteristics of frugal business model innovation across the three organisations. Key findings include innovative approaches to product/service design, distribution channels tailored to reach underserved populations and the implementation of flexible financing mechanisms to make products/services accessible to low-income consumers.Research limitations/implicationsThis study enhances the understanding of frugal innovation in emerging markets and highlights the importance of affordability, accessibility and sustainability in driving positive social impact. Limitations include focus on only three case studies and the qualitative nature of the research, which may limit generalisability.Practical implicationsThis study offers insights for managers and decisionmakers on implementing frugal innovation strategies to address societal challenges and promote inclusive growth in emerging markets. Key managerial implications include the importance of understanding local contexts, building partnerships and leveraging innovative financing mechanisms. The study provides guidance for practitioners and social entrepreneurs in developing scalable and sustainable solutions for underserved communities. Practical implications include the adoption of decentralised distribution models, customisation of products/services and investment in capacity-building and training programmes.Social implicationsThe study highlights the significant impact of frugal business model innovation on underserved communities, including improved access to essential services, enhanced quality of life and socioeconomic empowerment. Implications for society include the potential for frugal innovation to address pressing societal challenges and promote inclusive growth.Originality/valueThe originality and value of this study lie in its comprehensive analysis of frugal business model innovation across multiple sectors in the Indian context. By examining the experiences of AECS, ChotuKool and SELCO India, the study contributes to the literature on frugal innovation and provides actionable insights for businesses, policymakers and development practitioners seeking to create positive social impact in emerging countries.