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Value Creation through Frugal Innovation, Innovation Capability and Knowledge Sharing in a Circular Economy

Author

Listed:
  • Zahid Yousaf

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

  • Mirela Panait

    (Department of Cybernetics, Economic Informatics, Finance and Accounting, Petroleum-Gas University of Ploiesti, 100680 Ploiesti, Romania)

  • Umair Tanveer

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

  • Alina Cretu

    (Department of Economic Doctrines and Communication, Bucharest University of Economic Studies, 010375 Bucharest, Romania)

  • Andrei Hrebenciuc

    (Department of Economic and Economic Policies, Bucharest University of Economic Studies, 010375 Bucharest, Romania)

  • Sheikh Muhammad Zahid

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

Abstract

This study aims to examine the direct effect of innovation capability on value creation. The mediating role of frugal innovation and the moderating role of knowledge sharing are also explored between innovation capability and value creation link. This exploratory study uses quantitative and cross-sectional data collected through questionnaires. Structural equation modelling (SEM) was used to examine the hypothesis. Findings show a significant positive impact of innovation capability on value creation. Results proved that frugal innovation mediates the relations between innovation capability and value creation. Knowledge sharing strengthens the association between innovation capability and value creation in their association. Our research provides a framework for the sustainable advancement of SMEs in a circular economy and recommends that they increase the value creation of the products/services through frugal innovation based on the innovation capabilities. Moreover, knowledge-sharing practices speed up the interplay between innovation capability and value creation in the circular economy.

Suggested Citation

  • Zahid Yousaf & Mirela Panait & Umair Tanveer & Alina Cretu & Andrei Hrebenciuc & Sheikh Muhammad Zahid, 2022. "Value Creation through Frugal Innovation, Innovation Capability and Knowledge Sharing in a Circular Economy," Sustainability, MDPI, vol. 14(14), pages 1-14, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8504-:d:860397
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    References listed on IDEAS

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    Cited by:

    1. Ionela Munteanu & Liliana Ionescu-Feleagă & Bogdan Ștefan Ionescu, 2024. "Financial Strategies for Sustainability: Examining the Circular Economy Perspective," Sustainability, MDPI, vol. 16(20), pages 1-22, October.
    2. João Francisco da Fontoura Vieira & Márcia Elisa Soares Echeveste & Maria Auxiliadora Cannarozzo Tinoco & Arthur Marcon & Érico Marcon & Fernando Henrique Lermen, 2025. "Enhancing value cocreation orientation in service innovation: a new service development and service design integrated process," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-24, December.
    3. Jawad Abbas & Stefano Bresciani & Ghulam Subhani & Paola Bernardi, 2025. "Nexus of ambidexterity and frugal innovation for enhanced ESG performance of entrepreneurial firms. The role of organizational capabilities," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-23, December.

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