The Rise Of Digital Frugality: A Post-Pandemic Strategy For Lean Innovation And Resilient Business Models In Emerging Economies

Abstract

The COVID‑19 pandemic accelerated digital transformation across global business landscapes, but emerging economies faced unique constraints due to limited resources and infrastructural disparities. Against this backdrop, the concept of Digital Frugality—innovating with minimal digital resources, open‑source tools, and agile practices—has gained traction among micro, small, and medium enterprises (MSMEs) in India. This research explores how digital frugality has shaped lean innovation and resilience in Indian SMEs post‑pandemic, using simulated primary data from a nationally representative sample. Through mixed quantitative and qualitative methods, we analyze the relationships between frugal digital investment, operational resilience, and performance outcomes. Findings reveal that firms adopting digital frugality frameworks exhibited higher survival rates, greater customer retention, and improved cost efficiencies compared to peers relying on conventional digital investments. The paper concludes with actionable recommendations tailored to managers, policymakers, and development practitioners aiming to harness digital frugality for resilient business models in emerging economies.