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Towards the Achievement of Frugal Innovation: Exploring Major Antecedents among SMEs

Author

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  • Abdelmohsen A. Nassani

    (Department of Management, College of Business Administration, King Saud University, P.O. Box 71115, Riyadh 11587, Saudi Arabia)

  • Crenguta Sinisi

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

  • Daniela Mihai

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

  • Loredana Paunescu

    (Department of Cybernetics, University of Petrol & Gas, 100680 Ploiesti, Romania)

  • Zahid Yousaf

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

  • Mohamed Haffar

    (Department of Management, Birmingham Business School, Birmingham B15 2TY, UK)

Abstract

The study in hand investigates the impact of the Internet of things (IoT) and digital platforms on frugal innovation. Furthermore, we also tested the intervening role of digital platforms and moderating role of organizational readiness. Data were collected from SMEs and the collected data were analyzed with various statistical techniques. Findings shown that the IoT positively affects digital platforms and frugal innovation. Results proved that digital platforms mediate the association between the IoT and frugal innovation. Furthermore, organizational readiness also moderates on the association between digital platforms and frugal innovation. The findings revealed that only those businesses that update their business operations according to the needs of their customers can achieve success. Frugal innovation is an emerging concept, and its achievement is a very tricky and complex task. This study shows that only those businesses that update their business operations using the IoT and digital platforms can achieve success. Moreover, modern SMEs should be able to adapt to the required changes in their business activities. Hence, SMEs also require some strategic changes in their operations in order to cope with changing business circumstances.

Suggested Citation

  • Abdelmohsen A. Nassani & Crenguta Sinisi & Daniela Mihai & Loredana Paunescu & Zahid Yousaf & Mohamed Haffar, 2022. "Towards the Achievement of Frugal Innovation: Exploring Major Antecedents among SMEs," Sustainability, MDPI, vol. 14(7), pages 1-12, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:7:p:4120-:d:783432
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Bruno Francisco Diniz Marinho & Isotilia Costa Melo, 2022. "Fostering Innovative SMEs in a Developing Country: The ALI Program Experience," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    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. Qingzhi Huan & Yiwen Chen & Xincong Huan, 2022. "A Frugal Eco-Innovation Policy? Ecological Poverty Alleviation in Contemporary China from a Perspective of Eco-Civilization Progress," Sustainability, MDPI, vol. 14(8), pages 1-16, April.
    5. Qin, Weiwei, 2024. "How to unleash frugal innovation through internet of things and artificial intelligence: Moderating role of entrepreneurial knowledge and future challenges," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    6. Suherman & Florentinus Pambudi Widiatmaka & Fitri Kensiwi & Didik Dwi Suharso & Sukirno & Pranyoto & Susena Karona Cahya & Kundori & Haniek Listyorini & Sapto Supriyanto & Pranoto & Sukrisno, 2024. "Resilience in tourism-based SMEs driven by initiatives and strategies through share value relational capital viewed from a resource-based theory perspective," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-16, December.
    7. Josephat D. Sengura & Mu Renyan, 2024. "The Role of Entrepreneurial Orientation and Entrepreneurial Bricolage on Frugal Innovation and SMEs Sustainable Performance in Emerging Markets," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 10(4), pages 19-37, May.

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