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Organizational Innovativeness in the Circular Economy: The Interplay of Innovation Networks, Frugal Innovation, and Organizational Readiness

Author

Listed:
  • Zahid Yousaf

    (Higher Education Department, Government College of Management Sciences, Mansehra 23100, Pakistan)

  • Daniela Mihai

    (Department of Management and Business Administration, University of Pitesti, 110040 Pitesti, Romania)

  • Umair Tanveer

    (School of Management, University of Bristol, Bristol BS8 1PY, UK)

  • Mădălina Brutu

    (Department of Management and Business Administration, University of Pitesti, 110040 Pitesti, Romania)

  • Smaranda Toma

    (Department of Management and Business Administration, Faculty of Economics and Law, University of Pitesti, 110040 Pitesti, Romania)

  • Sheikh Muhammad Zahid

    (Business School Southlands College, University of Roehampton, London SW15 5SL, UK)

Abstract

Due to technological advancements, all types of businesses confront new opportunities. In the contemporary era of technology, innovation performs a key role in successful commercial landscape operations. Therefore, this research was conducted to examine the effect of the innovation network (IN) on organizational innovativeness (OI). Moreover, the mediating effects of frugal innovation (FI) and the moderating role of organizational readiness (OR) have also been examined. Data collection through a cross-sectional method was conducted for this study from SMEs. Some 442 managers and owners provided correct responses, which were used for further analysis. SEM was used for testing the hypotheses of the current study. The results showed that the innovation network positively affects organizational innovativeness. Furthermore, the outcomes also validated that frugal innovation plays a mediating role between the innovation network and the organizational innovativeness link. The SMEs working in the circular economy are mainly dependent on their innovative activities/actions. In the current dynamic scenario, the survival of SMEs is linked to continuous organizational innovativeness in their products/services.

Suggested Citation

  • Zahid Yousaf & Daniela Mihai & Umair Tanveer & Mădălina Brutu & Smaranda Toma & Sheikh Muhammad Zahid, 2022. "Organizational Innovativeness in the Circular Economy: The Interplay of Innovation Networks, Frugal Innovation, and Organizational Readiness," Sustainability, MDPI, vol. 14(11), pages 1-13, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:11:p:6501-:d:824548
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    References listed on IDEAS

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    2. Henrike Holwerda & Willem Haanstra & Jan Braaksma, 2024. "Operationalizing the Circular Economy—A Longitudinal Study on Sustained Circular Action," Sustainability, MDPI, vol. 16(14), pages 1-15, July.
    3. Maria Csutora & Gabor Harangozo & Cecilia Szigeti, 2022. "Factors behind the Consumer Acceptance of Sustainable Business Models in Pandemic Times," Sustainability, MDPI, vol. 14(15), pages 1-18, August.
    4. Al-Omoush, Khaled Saleh & Garcia-Monleon, Fernando & Mas Iglesias, José Manuel, 2024. "Exploring the interaction between big data analytics, frugal innovation, and competitive agility: The mediating role of organizational learning," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    5. Khalid Jamil & Wen Zhang & Aliya Anwar & Sohaib Mustafa, 2025. "Exploring the Influence of AI Adoption and Technological Readiness on Sustainable Performance in Pakistani Export Sector Manufacturing Small and Medium-Sized Enterprises," Sustainability, MDPI, vol. 17(8), pages 1-28, April.
    6. Chunyan Li & Mohsin Shafait, 2025. "Assessing the impact of network embeddedness on SMEs innovation performance through resource bricolage: a mediated-moderated model," Operations Management Research, Springer, vol. 18(1), pages 72-88, March.
    7. Al-kahtib, Ayman & Alghababsheh, Mohammad & Khattab, Mais, 2025. "The role of organizational ambidexterity and frugal innovation in enhancing circular supply chains: The effect of artificial intelligence capabilities," Technological Forecasting and Social Change, Elsevier, vol. 210(C).

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