The third chapter explores the empirical context of the dissertation, focusing on the material engineering department at Volkswagen AG in Wolfsburg, Germany. With the automotive industry’s growing emphasis on sustainable and circular materials, the internal requirement management system is identified as a potential barrier to innovation and sustainability. Over-engineering of materials frequently results in excessive performance demands, costly optimization cycles, and the rejection of “good enough” solutions. The empirical study adopts an action research approach to identify the organizational antecedents of over-engineering and develop interventions in favor of frugal engineering.