Journal of Business Strategy

Going East: a framework for reverse innovation in SMEs

Dominik Dellermann,
Article information:
To cite this document:
Dominik Dellermann, (2017) "Going East: a framework for reverse innovation in SMEs", Journal of Business Strategy, Vol.
38 Issue: 3, pp.30-39, https://doi.org/10.1108/JBS-02-2016-0014 Permanent link to this document:
https://doi.org/10.1108/JBS-02-2016-0014
Downloaded on: 13 June 2017, At: 18:02 (PT)
References: this document contains references to 22 other documents.
Downloaded by State University of New York at Binghamton At 18:02 13 June 2017 (PT)

To copy this document: permissions@emeraldinsight.com

The fulltext of this document has been downloaded 22 times since 2017*
Users who downloaded this article also downloaded:
(2017) ,"The ambidextrous manager: what role does culture play?", Journal of Business Strategy, Vol. 38 Iss 3 pp. 3-9 <a
href="https://doi.org/10.1108/JBS-03-2016-0030">https://doi.org/10.1108/JBS-03-2016-0030</a>
(2017) ,"Social media: open innovation in SMEs finds new support", Journal of Business Strategy, Vol. 38 Iss 3 pp. 21-29 <a
href="https://doi.org/10.1108/JBS-02-2016-0015">https://doi.org/10.1108/JBS-02-2016-0015</a>

Access to this document was granted through an Emerald subscription provided by emerald-srm:203677 []

For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service
information about how to choose which publication to write for and submission guidelines are available for all. Please visit
www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of
more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online
products and additional customer resources and services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication
Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.
*Related content and download information correct at time of download.

Downloaded by State University of New York at Binghamton At 18:02 13 June 2017 (PT)
Going East: a framework for reverse
innovation in SMEs
Dominik both opportunities for new markets as well as potential hubs of innovation. A newly emerging middle
Dellermann class needs to be catered to in a new and special manner and, accordingly, unique product architecture
is required. Providing the newly emerging middle class in emerging markets with access to innovative
products requires the design of unique value propositions. If small firms in emerging economies want to
be able to enter their home markets and at the same time improve their competitive position in their
home markets, reverse innovation might be the formula for future success (Hart and Christensen,
2002).
Dominik Dellermann is
Research Assistant at the The term reverse innovation first appears in an article about recent innovation projects at general
Chair of Innovation electrics. This nomenclature identifies a specific approach to the global commercialization of products
Management, Otto initially developed in and for emerging markets. This approach signals a marked change or shift in view
Friedrich Universitat on the direction of the global movement or flow of innovations from the traditional approach of a top-
Bamberg Fachgebiet down flow of innovations, i.e. from rich to poor countries, reverse, which is to say from developing to
Betriebswirtschaftslehre, developed nations’ markets. This is possible as the solution to customer’s problems in developing
Bamberg, Germany. countries can lead to commercial success for MNCs by creating new markets in the developed world
Introduction (Immelt et al., 2009).
Developing countries
A number of small enterprises exhibit potential for success in accordance with this approach. One
are attracting special
example is the US non-profit start-up Diagnostics for All, which has developed small paper-based
attention in the
diagnostic tests containing chemicals that react with blood, urine and sweat to indicate specific
context of strategy
diseases via color changes. This unique technology fits the needs of developing countries’ health
research and
systems and has the potential to satisfy the requirements of rural hospitals in wealthy countries as well.
managerial practice. During the
Diagnostics for All has created a revolutionary business model based on strategic partnerships, grant-
past few years, emerging
giving organizations and private donators that will supply to markets in developed countries medical
markets have become the
diagnostics performed in developing countries (Diagnostics for All, 2012).
rising stars in terms of
economic growth and hence Against this background, we conducted a case study of the German healthcare industry, a small and
faded into the strategic focus of medium-sized enterprise (SME), Voigtmann, and we propose a framework for facilitating reverse
Western multinational innovation in SMEs. We also seek a better understanding of how SMEs can leverage inter-
corporations (MNCs). organizational networks and stimulate innovation to offer novel value propositions for emerging markets
Developing countries represent and using this new growth strategy to find applications in industries in developed countries.

PAGE30
 Downloaded by State University of New York at Binghamton At 18:02 13 June 2017 (PT)
‘‘Developing countries represent both opportunities for new
JOURNAL OF markets as well as potential hubs of innovation.’’
BUSINESS

STRATEGYVOL.
38 NO. 3 2017, pp. 30-39, © Emerald Publishing Limited, ISSN 0275-6668 DOI 10.1108/JBS-02-2016-0014
Why are emerging markets so attractive?
Economic indicators

The growing importance of emerging economies is due to several important factors: the high
population figures and potentially huge markets, market opportunities resulting from the large population
sizes, and the enormous economic growth they are experiencing. China and India alone represent
about 37.5 per cent of the global population and approximately 6.4 per cent of the world’s economic
output at current exchange rates. Further, they are accountable for 7 per cent of global gross domestic
product, rising, respectively, to the world’s first and third largest economies within the next 35 years.
In accordance with the concept of the economic pyramid, emerging economy markets represent
income groups that have incomes below US$20,000 (all figures in are in US$) per year (Hart and
Prahalad, 2002). Developing countries have an expanding middle class whose yearly income is
between US$1,500 to US$20,000 and who, as a group, represent a tremendous mass market
of roughly two- thirds of the world population, the so-called“bottom of the pyramid” ( BOP ).

The economic world consists of a potential business market of approximately four to five billion
people. India alone has a middle class of up to 470 million people and 260 million lower-income
people earning US$2 to US$13 per day (RBI, 2013). China, by 2030, will have approximately 1.4
billion middle-class consumers. By contrast, the developed economies will account only for 780 million people
in this tier of middle-income earners. Thus, China alone will contain about 70 per cent of the world’s middle
class market. The economic growth of developing countries raises the economic status of large numbers of
consumers, particularly consumers for low-end and mid-range products (Gadiesh et al., 2007). The healthcare
industry in particular is benefiting from rapidly increasing demand resulting from increasing awareness of
health-related issues by the beneficiaries of rising income along with increasing governmental investments in
public healthcare systems (Govindarajan and Ramamurti, 2013).

Technological indicators

Developing countries do not offer only promising markets for goods and services. Many developing countries
possess high levels of local technological expertise in an economic environment that fosters global R&D
activities and general innovation output as well as the potential for evolving into innovation hubs (Tiwari and
Herstatt, 2013). Although the trio of North America, Western Europe and Japan have been the undisputed
leaders of R&D for a long period, the focus is shifting to emerging economies with the increasing level of
Western foreign direct investment in those countries (Guinet and De Backer, 2008). The number of foreign-

VOL. 38 NO. 3 2017JOURNAL OF BUSINESS STRATEGYPAGE 31

owned R&D centers in India increased from approximately 100 in 2003 to about 750 by 2009, transforming
India into a prominent hub for MNC innovation (UNESCO, 2010).

In addition, developing countries themselves increased their own spending on R&D. China and India doubled
their investments between 2007 and 2012 from US$100 to US$200bn and from US$21 to US$40bn,
respectively. Together, they represent about 20 per cent of global R&D expenditures at the time of writing. Due
to an increasing emphasis on education in developing countries, the availability of local scientists and
engineers has

PAGE32
 increased, which, in turn, has led to growing innovation output. Between 2000 and 2010 , the numbers of patent
registrations submitted in Europe and the USA from developing countries grew dramatically. The top innovation
performers, India and China, reached double-digit expansion rates but Brazil, South Africa, Russia and Saudi Arabia
are all following closely on the heels of India and China (Brunke, 2012).
Downloaded by State University of New York at Binghamton At 18:02 13 June 2017 (PT)

Lead market indicators

In the context of reverse innovation, the function of developing countries as lead markets is obvious. Lead markets
can forecast the global success of a product. Five factors reveal the potential of developing countries as lead
markets (Table I): market structure, demand, price and cost, transfer and export advantage (Tiwari and Herstatt,
2013).

What do emerging market customers need?

Emerging market customers are different, and their needs reflect five significant gaps that create the opportunity for
reverse innovation products (Govindarajan and Trimble, 2013).

The performance gap suggests the extreme differences in income of the emerging middle classes, but consumers in
developing countries are highly sophisticated and require innovation. They will accept lower product performance
standards but only at an affordable price. A new price–performance ratio therefore becomes indispensable.

Another big difference in these markets is in an infrastructure gap, the frequent lack of physical infrastructure such as
healthcare facilities. Products or services that represent exciting opportunities for innovation, for example, in the
fields of renewable energy or healthcare, but lack sufficient infrastructure, could otherwise be available in these
markets.

Due to their rapid economic growth and large populations, developing countries suffer from a sustainability gap,
marked by air and water pollution. Such problems need to be solved and offer business opportunities for innovative
products.

The difference in regulatory systems has two aspects. On one hand, the frequently underdeveloped regulatory
process in emerging economies provides a faster time to market when compared to the bureaucratic hurdles in more
developed economies that often hinder innovation. On the other hand, high levels of regulation may ensure quality
and safety. Some systems may exhibit deficiencies in both respects. For example, the Indian healthcare system has
a complex approval process as well as an inadequate quality standard.

Due to differences in national attitudes or characteristics, climates and the environment, developing country
customers have unique preferences that often differ from those in developed countries and require adapted products
or services that target the uniqueness of needs.

Table I Emerging markets advantages for lead markets

Advantage Emerging market specificities

Cost High growth

Low cost for production factors
Demand Large, unserved group of customers
Innovation-friendly consumers
Technological High availability of skilled labour
Access to public institutions and R&D networks
Export Increasing integration in global economy
Different emerging markets with similar needs
Market structure Large and dynamic market structure
High competition

VOL. 38 NO. 3 2017JOURNAL OF BUSINESS STRATEGYPAGE 33

The frugal product architecture of emerging market innovation

Obviously, simple downsizing is not sufficient. Instead, a clean slate approach for developing new products requires
a special architecture. Zeschky et al. (2014) identified the most common features of emerging market

Downloaded by State University of New York at Binghamton At 18:02 13 June 2017 (PT)
products:

low-end/mid-end performance;

simplicity;

robust/maintenan ce-friendly; high volume

orientation; and

(relative) low price point.

Digital technology offers scalable solutions to foster the development of a 50 per cent performance solution at
a 15 per cent price point compared to products in developed countries.

The organizing logic of emerging market innovation

Firms from developed (mostly Western) nations need to transition from outdated practices to more
innovative thinking and adjust their organizational structures and business mindsets to implement
reverse innovations in their existing business. While the benefits of setting up highly independent
local growth teams directly in emerging markets has been extensively discussed in various studies
(Immelt et al., 2009; Govindarajan and Trimble, 2013; Zeschky et al., 2011), open innovation within the
context of reverse innovation is attracting attention. Opening up the innovation process and making use of
collaborative forms of R&D has a significant effect on emerging market innovation. Several examples
such the Tata Nano car, the ChotuKool fridge or the solar-powered Vortex ATM all demonstrate the
success of collaboration during different stages of the innovation process. Increasing adaption to local
demand requires cooperative development across borders. Openness of innovation enables a higher and
faster knowledge transfer and sharing of risk as well as cost and provides opportunities to engineer new low-cost
value propositions that suit local requirements. Further, it can support global distribution to create a reverse flow
(Singh and Chaudhuri, 2009).

Especially for SMEs, breaking geographical and organizational boundaries of innovation management provides two
benefits. First, SMEs can expand their barriers to innovation through international R&D activities. Second, small
companies are able to engineer low-cost products that also meet specific needs of emerging markets customers.
Collaborative forms of international innovation activities in general have proved promising for the resource-
constrained circumstances of small firms.

The reverse diffusion of emerging market innovation

Reverse innovation addresses the global commercialization of products developed in and for emerging markets. The
focus of product engineering shifts from the traditional approach of a top-down flow of innovations from rich to poor
countries to a new bottom-up maxim with innovation moving in the reverse direction, from developing to developed
markets. The increasing problem-solving ability in emerging economies, such as China and India,

‘‘The economic world consists of a potential business market

of approximately four to five billion people.’’

PAGE34JOURNAL OF BUSINESS STRATEGYVOL. 38 NO. 3 2017

‘‘. . . the frequently underdeveloped regulatory process in emerging
economies provides a faster time to market when compared to the
bureaucratic hurdles in more developed economies that often

Downloaded by State University of New York at Binghamton At 18:02 13 June 2017 (PT)
hinder innovation.’’

promotes the success of undertakings in those countries by creating new markets in the
developed world (Govindarajan and Ramamurti, 2011).

The emerging market healthcare industry

Emerging markets are gaining special importance for the future of healthcare. With
changes in the market for medical equipment in developed countries, emerging market
products have a high potential to flow in reverse (Bottles, 2012). Developing economies
are also supposed to become future hubs of medical innovation during the next few years,
putting them in the spotlight of reverse innovation efforts.

Emerging economies claim a high specificity of local needs that are particularly important
for the healthcare sector (Prahalad, 2006). The low number of physicians and medical
personnel per population, mass demand and minimal governmental healthcare
expenditure as well as low income present notable differences compared to developed
countries (World Health Organization, 2014). Most hospitals in emerging markets lack the
financial resources for diagnostic equipment that can withstand harsher local conditions.

Accelerating demand for medical solutions results from progressive urbanization,

increases in chronic disease frequency and advancing personal health awareness as
individual income grows. Governmental healthcare expenses have been increasing to
provide social benefits. Consequently, healthcare expenditures and the number of people
with health insurance in countries such as China have more than doubled during the past
few years and have provided market opportunities for Western companies from wealthy
nations. The medical expenditures in emerging markets are often a result of lifestyle
behaviors and chronic diseases such as diabetes or obesity, which, ironically, are caused
by increased wealth (Gougen, 2012). In 2010 , around 92.4 million people with diabetes
and 148.2 million people at a pre-diabetes stage were living in China. Not only do most of
these people still have no medical supervision, but with increasing affluence, demand for
medical care is also increasing. Thus, in light of both the high numbers of people without
medical supervision and the changing demand among those consumers for medical
treatment, there is an exceptionally large business opportunity for healthcare companies
from (Western) developing nations.

Within the healthcare industry, the digital technology segment is the fastest growing in
emerging economies and includes digital services, software layers and corresponding
hardware components. Such product architecture enables the development of low-cost
products. Accordingly, because of developing countries’ resource constraints, there is
excellent growth potential for an important part of the healthcare information technology
market known as telemedicine. An inadequate supply of physicians and stark disparities
with respect to availability of hospitals and medical services fuel the demand for innovative
technology. The widespread availability of mobile networks, the need for cheap, low power
and portable medical monitoring devices and the implementation of tele-enabled inter-
hospital workflow systems, all allow low-cost diagnosing. Recordings of patients can be
taken by technicians with a low level of medical expertise, and better quality medical

VOL. 38 NO. 3 2017JOURNAL OF BUSINESS STRATEGYPAGE 35

 assistance can be offered anywhere at any time. Developing countries have thus become
the leading markets for digital technology in the healthcare industry.
Methodology

Downloaded by State University of New York at Binghamton At 18:02 13 June 2017 (PT)
This paper adopts an exploratory and descriptive single case study research design that allows research on
unexplored topics (Yin, 2013). The company we chose is an SME operating in the German healthcare
industry, where more than 80 per cent of total companies providing medical devices are SMEs. Second,
while the company operates in a developed country, it maintains a strong focus on developing
products for emerging markets. Third, the company’s unique approach offers insights into designing a
blueprint for reverse innovation in SMEs. For an in-depth examination, we used multiple data sources,
including formal interviews, internal company documents, academic publications and media sources.

The low-cost Fundus camera project at Voigtmann

Voigtmann is a German, owner-managed SME operating in the IT and healthcare industries. The IT house
system develops and operates customized software solutions for business clients as well as tele-medical
diagnosing systems.

The “Low-Cost Fundus Camera” project is a collaborative and publicly subsidized project under the aegis of
Medical Valley EMN, which, since its initial start in 2010, has been led by Voigtmann to provide software-
based tele- medical systems and a hand-held camera for low-cost and automated diagnosing of
diabetic retinopathy.

Small and medium-sized enterprise strategy

The analysis of Voigtmann‘s strategy reveals an innovative and atypical approach for an SME to enter an
emerging market. The firm is developing the low-cost fundus camera system as an initial product for
developing countries to solve problems rather than to compete with low cost products. A German-
based R&D team applies an open innovation approach with several research institutions. The idea for reverse
commercialization emerged at an early stage of the project during key discussions on identifying and deciding on
potential applications in Germany.

Internal resources

The R&D team draws on internal resources such as core technologies and knowledge, human resources and
financial support from operating activities to ensure competitive advantage of the SME.

External resources

External financing and market expertise as well as expertise on technical components that are not available within
the corporate network support reverse innovation in the SME. Moreover, the valuable contacts and networks of
partners can be leveraged. Membership in a medical business cluster has turned out to be a constructive procedure
to build partnerships. These resources have come primarily from partners located within the national boundaries of
the SME.

‘‘The empirical data of this research indicate that small firms

can capitalize from reverse innovation and should consider
this strategic approach. ’’

PAGE36JOURNAL OF BUSINESS STRATEGYVOL. 38 NO. 3 2017

 Local environment
Downloaded by State University of New York at Binghamton At 18:02 13 June 2017 (PT)

The local environment is crucial for enabling reverse innovation. Contacts with local physicians and hospitals
facilitate sharpening focus on the local demand in the emerging economies’ healthcare systems and enable
gathering valuable market insights. Relationships to local suppliers are a foundation for emerging market production
to achieve cost advantage. Lead market factors, especially technological, export and demand advantage foster the
implementation of reverse innovation (Figure 1).

Emerging market product architecture

To apply reverse innovation in SMEs, a frugal value proposition is most suitable. Thus, a mid-end performance,
easy-to-use technological architecture was developed. Engineers designed a product with a high priority on
simplicity, robustness and ease of maintenance. Applying a digital layer enables engineering a scalable software
solution to ensure high volume orientation at a relatively low price point. The product has to be adapted to meet
regulatory demands of Western healthcare markets and enable a reverse flow.

Emerging market innovation organization

The resource constraints of SMEs require an emerging reverse innovation organization. Therefore, a collaborative
R&D team is most effective. Additionally, being a member in a medical cluster constitutes a special situation for the
organization of the small firm. The SME’s team members can initially work on core business projects and in
accordance with demand can adjust their priorities to focus on the reverse innovation venture. In time, a separate
organization will emerge to enable a dual structure linked to the project’s progress and success. The decision to
pursue a reverse innovation approach or operation can only be taken by a company’s headquarters and demands
high levels of central control, financial and other resources support. To proceed with this approach, a member of the
SME’s top management team must be responsible for the venture. Voigtmann’s R&D team is located in Germany, as
the company has no local subsidiaries. Decision rights about the product portfolio are centralized while knowledge is
shared with partners of the R&D cooperation. Each member of the alliance has high-technological autonomy
corresponding to its core competences. Decisions concerning technical features are joint within collaborative
discussions to ensure input representing different points of view.

Conception and implementation

The management of the SME initiated the reverse innovation project. To generate applicable ideas, a collaborative
search with physicians as well as medical centers for

Figure 1 Framework for reverse innovation SMEs

VOL. 38 NO. 3 2017JOURNAL OF BUSINESS STRATEGYPAGE 37

possible solutions is most valuable in the healthcare industry. The cluster provides networks and contacts with
suitable partners. For the development stage, a collaborative R&D team consisting of internal engineers and external
researchers from a university combined their technological knowledge. The open approach places high demands on
management to respect intellectual property rights, including securing patents and creating technological
Downloaded by State University of New York at Binghamton At 18:02 13 June 2017 (PT)

barriers. Conducting testing in real-life contexts both in developed as well as in developing countries
involved cooperation with local physicians and hospitals to ensure applicability both globally as well
as in the emerging market.

Marketing

During the last stage of the innovation process, local production provided a cost advantage. Intermediaries
are a crucial part of commercialization of the reverse innovation and help SMEs overcome the lack of an
adequate sales organization in emerging markets.

Emerging market commercialization

High demand for a frugal value proposition and the export advantage of similar needs within emerging
markets’ healthcare systems allowed the company to launch the product simultaneously in
developing countries as opposed to one market. The creation of a new sales organization required a
new network of sales contacts and intermediaries. This is particularly important if the SME has no existing
business activities within emerging markets. Voigtmann commercialized the tele-medical system at a low-price
point, offering a new solution for unserved customers and not competing with local low-cost companies.

A reverse innovation management framework for small and medium-sized enterprises

Managers of SMEs in developed countries can expect competition from reverse innovation efforts. To
leverage growth opportunities in emerging markets and find applications in the developed world, the
management of SMEs has to find a way to implement and embrace reverse innovation within their firms.

PAGE38JOURNAL OF BUSINESS STRATEGYVOL. 38 NO. 3 2017

Therefore, three main pillars are crucial for adapting the management framework: the corporate strategy, the new
business model and the architecture of the product itself (Figure 2).

From the beginning, the strategic focus must be clearly on the demand in the emerging markets as well as on the
identification of possible developed country markets. Firms must engineer products with the potential to flow in or
between markets in reverse to the traditional paradigm, and frugal value propositions are required to meet emerging
markets’ demands. Modular technological patterns (e.g. digital) that allow low cost scaling and the

Figure 2 Management implications for reverse innovation in SMEs

ded by State University of New York at Binghamton At 18:02 13 June 2017 (PT)

Keywords: Small and medium sized

Emerging markets, enterprise, Frugal innovation adaption of the product for Western
Healthcare, markets are most suitable for establishing in new markets.
Open innovation,
Finally, applying a hybrid business model allows reverse innovation
Digital, operations beside the existing business models and distributes innovation
Reverse innovation, activities for single components within business networks to overcome

VOL. 38 NO. 3 2017JOURNAL OF BUSINESS STRATEGYPAGE 39

 Do
resource constraints of Bottles, K. (2012), “Reverse innovation and American healthcare in a time of cost crisis”,
small firms. Physician Executive Journal, Vol. 38 No. 4, pp. 18-20.

Brunke, B. (2012), “Innovation – how the emerging markets are driving the global innovation
agenda”, available at:
Conclusion www.rolandberger.de/media/pdf/Roland_Berger_8_Billion_Emerging_markets_are_
driving_the_global_innovation_agenda_20121109.pdf
The empirical data of
this research indicate Diagnostics for All (2012), “Our unique model”, available at: http://dfa.org/our-vision/our-unique-
that small firms can model. php (accessed 1 December 2015).
capitalize from reverse Gadiesh, O., Leung, P. and Vestring, T. (2007), “The battle for China’s good-enough market”,
innovation and should Harvard Business Review, Vol. 85 No. 9, p. 80.
consider this strategic
Gougen, F. (2012), Global Wealth Creation: The impact on Emerging Market’s Healthcare.
approach, even if they
previously were not Govindarajan, V. and Ramamurti, R. (2011), “Reverse innovation, emerging markets, and global
engaged in export or strategy”, Global Strategy Journal, Vol. 1 Nos 3/4, pp. 191-205.
direct operations in Govindarajan, V. and Ramamurti, R. (2013), “Delivering world-class healthcare, affordably”,
developing countries. Harvard Business Review, Vol. 91 No. 11, pp. 117-122.
Developing countries
Govindarajan, V. and Trimble, C. (2013), Reverse Innovation: Create Far From Home, Win
are no longer limited to Everywhere, Harvard Business Press.
local companies or
MNCs from developed Guinet, J. and De Backer, K. (2008), The Internationalisation of Business R&D: Evidence, Impact
and Implications, Organization for Economic.
nations. Developed
country SMEs can Hart, S.L. and Christensen, C.M. (2002), “The great leap”, Sloan Management Review, Vol. 44
leverage tremendous No. 1 , pp. 51-56.
growth opportunities Hart, S.L. and Prahalad, C.K. (2002), “The fortune at the bottom of the pyramid”, Strategy and
when applying a Business, No. 26, pp. 54-67.
reverse innovation
Immelt, J.R., Govindarajan, V. and Trimble, C. (2009), “How GE is disrupting itself”, Harvard
procedure. This recent Business Review, Vol. 87 No. 10, pp. 56-65.
pathway of innovation
is not restricted to local Prahalad, C.K. (2006), The Fortune at the Bottom of the Pyramid, Pearson Education India.
success in emerging RBI (2013), Handbook of Statistics on the Indian Economy, Reserve Bank of India, Mumbai.
markets but can also
facilitate prosperous Singh, S.K. and Chaudhuri, A. (2009), “The reality of India: folding constraints into business
strategy”, Journal of Business Strategy, Vol. 30 No. 4, pp. 5-16.
business activity at
home and, potentially, Tiwari, R. and Herstatt, C. (2013), Aiming Big With Small Cars: Emergence of a Lead Market in
globally. India, Springer Science & Business Media.

UNESCO (2010), UNESCO Science Report 2010: The Current Status of Science Around the
World, UNESCO Publishing.
References
World Health Organization (2014), Global Health Observatory:(GHO), World Health Organization.
Yin, R.K. (2013), Case Study Research: Design and Methods, Sage Publications, New York, NY.

Zeschky, M.B., Widenmayer, B. and Gassmann, O. (2011), “Frugal innovation in emerging markets”, Research-Technology
Management, Vol. 54 No. 4, pp. 38-45.

Zeschky, M.B., Winterhalter, S. and Gassmann, O. (2014), “From cost to frugal and reverse innovation: mapping the
University of New York at Binghamton At 18:02 13 June 2017 (PT)

field and implications for global competitiveness”, Research-Technology Management, Vol. 57 No. 4, pp. 20-27.

Further reading
Zedtwitz, M., Corsi, S., Søberg, P.V. and Frega, R. (2015), “A typology of reverse innovation”, Journal of Product
Innovation Management, Vol. 32 No. 1, pp. 12-28.

Corresponding author
Dominik Dellermann can be contacted at: dellermann@uni-kassel.de

PAGE40JOURNAL OF BUSINESS STRATEGYVOL. 38 NO. 3 2017

 Downloaded by
For instructions on how to order reprints of this article, please visit our website:
www.emeraldgrouppublishing.com/licensing/reprints.htm Or contact us for further details:
permissions@emeraldinsight.com

VOL. 38 NO. 3 2017JOURNAL OF BUSINESS STRATEGYPAGE 41