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Organising for reverse innovation in Western MNCs: the role of frugal product innovation capabilities

Marco Zeschky, Bastian Widenmayer, Oliver Gassmann · 2014 · International Journal of Technology Management

Summary. Western multinational companies in healthcare and electronics develop reverse innovations—products first adopted in developing countries—by locating design and development in resource-constrained subsidiaries. The study of four companies shows that frugal product innovation capabilities, not headquarters location, determine success in reverse innovation. Building these capabilities in subsidiaries operating under resource constraints proves critical for generating innovations that work in developing markets.

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Zeschky, M., Widenmayer, B., & Gassmann, O.. (2014). Organising for reverse innovation in Western MNCs: the role of frugal product innovation capabilities. International Journal of Technology Management. https://doi.org/10.1504/ijtm.2014.059948

Details

DOI
10.1504/ijtm.2014.059948
Countries
Switzerland
Regions
Europe
Categories
innovation-theory, regional-innovation-systems, general-innovation
Added
2026-04-28