Thank you so much for your detailed reply but as far as my readings guide me the frugal innovation must not be necessarily provided cheaply as it is the discretion of the producer to pass the benefits, earned by the frugal innovation, to consumers. As it is sometimes difficult to offer products with razor-thin profit margins in developed countries as the volume may not be sufficient enough to justify the cost. Frugality can also be practiced by the companies abundant in resources as well and may not be just considered as a solution to resource constraints. Also I think it varies with the target consumers as well. If the innovative solution is for some social pressing problems of BOP market then the benefit should not be constrained to the innovator and shared thereof.
Regarding your opinion about game theory, nowadays few firms think of any strategy without adding a bit of game theory and win-win outcome applies to social enterprises context where nobody wins at the cost of other party. Though I don’t know about this theory in detail but this what I can see. Kindly disagree if you don’t find me on right track. However, the problem here is that I am doing a quantitative research on Social enterprises and looking for an established questionnaire of frugal innovation or social innovation.
Any ways thank you so much for giving such a detailed answer which definitely ignited thought provoking ideas.
Im working on development a scale for identify and measure the Frugal Innovation. I'm in the final stage of validation of this scale. My scale have is a reflexive multidimensional scale with three dimensions and nine items, already was applied in 450 brazilian firms and on the next week I'll apply this scale in 500 US firms and mexican firms, for final validation purpose.
I've published a first version of my Fruga Innovation Scale at 77th Academy of Management Meeting in Atlanta, in August 4th though 8th. Currently, the full paper is under review process. I hope get it published by half of 2018.
I've published a preliminary version with the outcomes presented at 77th AOM a few days ago. It's available on my ResearchGate profile. If you've any difficult, let me know.