New Sources of Growth: The Role of Frugal Innovation and Transformational Leadership

Abstract

This paper’s main thesis is that frugal innovation and transformational leadership offeradditional sources of growth. Our main contribution is the proposal of what we referto as the breakthrough possibility frontier (BPF) model, which integrates two aspectsof leadership: innovation quality (frugal innovation) and leadership competency(transformational leadership). We test the BPF model on two groups of respondents,one group consisting of university students who had never been formal leadersand the other formal leaders who had office experience. The BPF analysis suggeststhat transformational leadership is a game changer, required for breakthroughs.Transformational leadership is key to encouraging innovation quality and leadershipcompetency and, we argue, to facilitating new sources of growth. Our results implythe development of an integrated institutional framework for innovation. We believethat innovative leadership development programs that can be easily implementedand replicated in other regions are needed to develop transformational leadershipcompetencies.

Sustainable Leadership in Frontier Asia Region: Managerial Discretion and Environmental Innovation

“…Sustainable leaders also nurture generation and sharing of ideas, two-way communication, which leads to a mentally secure environment for innovation [33,36]. A polite relationship between top management and employees also plays a critical role in promoting creative activities within organizations [42], which is one of the fundamental practices of sustainable leadership [27]. By innovating incrementally, sustainable leadership practices introduce continuous improvements in products and processes at a small scale [43,44].…”

Insights on entrepreneurial bricolage and frugal innovation for sustainable performance

“…With a clear vision and knowledge‐sharing practices, sustainable leaders encourage the impact of frugal innovation (Juhro & Aulia, 2019). Highly effective innovation is in itself self‐sufficient, and minimizes negative consequences to nature (Juhro & Aulia, 2019). Practices such as vision‐sharing and top management support in experimenting with these attributes are determining factors in frugal innovation (Iqbal et al, 2020).…”

“…Sustainable leaders also believe in two‐way communication and knowledge‐sharing among diverse stakeholders (Iqbal & Ahmad, 2020). Moreover, the relationship between top management and employees influences creativity and innovation (Juhro & Aulia, 2019). Sustainable leadership promotes a lifelong learning culture, propagates amicable relationships with employees, protects the environment, promotes innovation and excellence, and respects existing conventions (Gerard, McMillan, & D'Annunzio‐Green, 2017; Iqbal & Ahmad, 2020).…”

A direct test of Kuznets in a developing economy: a cross-district analysis of structural transformation and inequality in Indonesia

“…The above two forces combined may have led to a shift of economic resources in the immediate aftermath and for a few years after the AFC, away from the manufacturing sector towards the natural resource sectors, particularly the quick-yielding raw commodity exporting sector. This shift may have slowed labour absorption in urban manufacturing sector, leaving the low value-added tertiary sector as the sector that does the job of absorbing labour migration from rural agriculture sector (Juhro and Aulia, 2019).…”