The paradox of responsible Jugaad innovation: Implications for Indian multinational corporations

Abstract

Jugaad, a form of frugal innovation from India, has both positive and negative attributes and effects, creating a paradox. While studies have mainly focused on the positive attributes of jugaad, including improvement in the lives of bottom of the pyramid (BOP) populations, adopting a more balanced approach to jugaad, given its several negative attributes (e.g., unsafe solutions, corruption, and illegality), is critical. Utilizing paradox theory, we empirically assess qualitative data from eight Indian multinational corporations (MNCs). Our findings highlight the paradox of jugaad , which challenges MNCs to find a balanced approach. This balance can be achieved through factors that promote responsible practices, policies, and strategies, aligned with the principles of responsible innovation, such as anticipation, reflexivity, inclusion, and responsiveness. We propose a theoretical model of responsible jugaad within this framework and our findings extend the academic discourse on paradox theory and responsible jugaad with implications for practitioners.

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