Drawing insights from a longitudinal case, this study aims to explore how companies use digital technologies to control frauds in resource-constrained environments.
The authors conducted a longitudinal study in a large Indian insurance company from 2013 to 2023, examining how economic, regulatory, competitive and professional pressures influenced the adoption of digital fraud detection tools in an institutional environment under resource constraints.
While regulatory mandates (coercive isomorphism) provided the necessary governance framework, they also increased compliance burdens. Mimetic and normative pressures were weaker due to financial and institutional limitations. The firm overcame these constraints by developing a low-cost, in-house tool – “Fraud-O-Meter” – using multi-trigger analysis and data mining. This frugal innovation enabled strategic fraud detection without reliance on expensive vendor software. The findings suggest that adaptive, internally developed solutions are more viable in emerging markets than imported best practices.
Regulators in emerging markets should create flexible compliance frameworks that allow companies to develop their own fraud detection tools rather than enforcing expensive, one-size-fits-all solutions.
This study shows how large firms in emerging markets can turn institutional and resource constraints into opportunities by using frugal digital innovation. It challenges the assumption that effective fraud control requires costly external models, highlighting context-driven, in-house solutions as viable and strategic. To the best of the authors’ knowledge, this is the first longitudinal case study in the context of fraud control.
