Frugal innovation as a concept was initially sparked by a groundbreaking article published in The Economist in 2010. In it, the conception and application of a handheld electrocardiogram (ECG), the Mac 400, specifically designed to serve the rural population in India, was introduced. Every aspect of this product and its ecosystem was designed to serve the customer at less than 25% of the original cost. Since this publication, a lively discussion around this concept has developed in academia as well as in the industry. As a term, “frugal innovation” refers to solutions (products or services), methods, or designs that focus on serving new customers in resource-constrained contexts at the bottom of the pyramid (BoP) and/or emerging and developing markets. This understanding has broadened somewhat as such innovations gain increasing attention and relevance throughout all customer segments across the globe. What remains consistent is that frugal innovation is based on a new type of value architecture that is specifically developed to serve customers’ needs in the respective context by utilizing as few resources as possible. This approach leads to many cases where frugal innovations are novel and disruptive to their market environment. Research shows that for firms, especially traditional “Western” ones, these innovations require significant changes in firms’ activities along the entire value chain.
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Frugal Innovation: Context, Theory, and Practice
Lukas Neumann and Oliver Gassmann
Article
The Concept, Treatment, and Future of Language in Contemporary Business and Management
Terry Mughan
In the literature of business and management, language, unlike the contiguous concepts of culture and communication, did not have a recognized place until the early part of the 21st century. Isolated publications about language might have appeared occasionally in journals in subdisciplines such as marketing, communication, and international business (IB), but there was no real visible research community or concentration of output in the field. Special issues appearing in International Studies of Management and Organization, 2005 and the Journal of World Business, 2011 were significant steps in demonstrating the emergence of active researchers at this time. In 2014, the Journal of International Business Studies (JIBS), the top-ranked IB journal and the only such journal used by the Financial Times for its global journal rankings, published its first special issue on the subject. This landmark issue attracted 78 submissions, of which 14 were published in JIBS over two issues, and this represented a breakthrough in terms of both quality and quantity that captured the attention of all in the IB field. Many explanations have been proffered for the delay in breaching this barrier, from tacit resistance on the part of monolingual executives and institutions to methodological bias in favor of numerical data to the daunting definitional complexity of the term “language” itself and its relation to nation-level phenomena.
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Leader–Member Exchange: A Commentary on Long-Term Staying Power and Future Research Directions
Terri A. Scandura and Kim Gower
In 1975, the phrase “vertical dyad linkage” (VDL) was introduced to begin examining the quality of the roles between the leaders and direct reports, and it was soon discovered that the linkages ranged between high quality and low quality. That linkage progressed into “leader–member exchange” (LMX) in 1982. In essence, research reached a point where it found a continuum of the quality of the relationship between the two members. High-quality relationships put the employees into the leader’s “ingroup,” while low-quality relationships left employees on the outside looking in. It followed that those in the ingroup would have some say in the decision-making, would have easier access to the leader, and would garner more respect and “liking.”
Researchers have used the LMX-7 to examine how the quality of superior/subordinate relationships affects individual, interpersonal, and organization factors like job satisfaction, communication motives, and organizational identification (as did the original LMX scale). Although the LMX-7 remains one of the most prominent psychometric measures of LMX, researchers still debate whether the construct should be considered unidimensional or multidimensional.
While the intricacies of LMX-7 versus LMX have been argued, and with teams becoming more of an organizational resource, team–member exchange (TMX) was found to be a supported extension of LMX. While at this point TMX is lacking in the volume and pace of research, due to the difficulties of measurement among a group of people who might have a variety of leaders during the process, the existing research has produced some results that are extremely relevant, now and in the future. Examples of what has been found when the team exchange relationship is high include reduced stress, increased psychological empowerment, increased creativity, increased team performance, increased individual performance, increased organizational citizenship behaviors, increased organizational commitment, and increased job satisfaction, just to name a few.
In sum, the investigation into LMX provides a history of the field of LMX and its many iterations and the role it plays in leadership studies. This research includes LMX antecedents, consequences, moderators, mediators, and outcomes, as any field in which over 4,500 papers have been published needs an effective way to highlight the progress and pathways.
