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Hegemony of Network Capabilities, Frugal Innovation and Innovation Strategies: The Innovation Performance Perspective

Author

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  • Mohamed Haffar

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

  • Rasim Ozcan

    (Department of Economics, Faculty of Humanities & Social Sciences, Ibn Haldu University, 34480 Istanbul, Turkey)

  • Magdalena Radulescu

    (Department of Finance, Accounting and Economics, University of Pitesti, 110040 Pitesti, Romania)

  • Nicoleta Isac

    (Department of Business Administration, İstanbul Sabahattin Zaim Üniversitesi, 34303 Istanbul, Turkey)

  • Abdelmohsen A. Nassani

    (Department of Management, College of Business Administration, King Saud University, Riyadh 11587, Saudi Arabia)

Abstract

The emergence of advanced technologies has brought new challenges and opportunities for all kinds of business organizations. In a technologically advanced era, innovation plays a dominant role for the successful operation of the commercial landscape. Therefore, the current study was conducted to investigate the impact of network capabilities (NC) and frugal innovation (FI) on innovation performance (IP). Furthermore, the mediating role of FI and moderating role of innovation strategies has also been tested on the link between NC and IP. Small and medium enterprises (SMEs) registered with small and medium enterprises development authorities (SMEDA) were approached for the completion of the current study. Only 509 owner/managers agreed to participate. A quantitative research design was employed for the current study. During the two–three months process of data collection only 387 complete responses were received from the SMEs working in Pakistan’s big cities. Correlation, regression and bootstrap methods were applied to test the study hypotheses. The findings revealed that NC positively affect FI and IP. Furthermore, the findings also confirmed the mediating effect of FI between NC and IP link. The performance of SMEs working in emerging economies is largely based on their innovative activities. In this dynamic scenario SMEs’ survival is attached to continuous IP in their products and services.

Suggested Citation

  • Mohamed Haffar & Rasim Ozcan & Magdalena Radulescu & Nicoleta Isac & Abdelmohsen A. Nassani, 2021. "Hegemony of Network Capabilities, Frugal Innovation and Innovation Strategies: The Innovation Performance Perspective," Sustainability, MDPI, vol. 14(1), pages 1-12, December.
    • Handle: RePEc:gam:jsusta:v:14:y:2021:i:1:p:2-:d:707174
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    References listed on IDEAS

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    1. Walter, Achim & Auer, Michael & Ritter, Thomas, 2006. "The impact of network capabilities and entrepreneurial orientation on university spin-off performance," Journal of Business Venturing, Elsevier, vol. 21(4), pages 541-567, July.
    2. Dandan Li & Yehua Dennis Wei & Changhong Miao & Yangyi Wu & Weiye Xiao, 2019. "Innovation, Network Capabilities, and Sustainable Development of Regional Economies in China," Sustainability, MDPI, vol. 11(17), pages 1-21, September.
    3. Curado, Carla & Muñoz-Pascual, Lucía & Galende, Jesús, 2018. "Antecedents to innovation performance in SMEs: A mixed methods approach," Journal of Business Research, Elsevier, vol. 89(C), pages 206-215.
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    Cited by:

    1. 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).
    2. 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.
    3. 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.
    4. Hongni Zhang & Xiangyi Xu, 2023. "Innovative Technology Method Based on Evolutionary Game Model of Enterprise Sustainable Development and CNN–GRU," Sustainability, MDPI, vol. 15(5), pages 1-17, February.

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