IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i7p4120-d783432.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/7/4120/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/7/4120/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Claiborne, Nancy & Auerbach, Charles & Lawrence, Catherine & Schudrich, Wendy Zeitlin, 2013. "Organizational change: The role of climate and job satisfaction in child welfare workers' perception of readiness for change," Children and Youth Services Review, Elsevier, vol. 35(12), pages 2013-2019.
    2. Arun Rai & Xinlin Tang, 2010. "Leveraging IT Capabilities and Competitive Process Capabilities for the Management of Interorganizational Relationship Portfolios," Information Systems Research, INFORMS, vol. 21(3), pages 516-542, September.
    3. Piotr F. Borowski, 2021. "Digitization, Digital Twins, Blockchain, and Industry 4.0 as Elements of Management Process in Enterprises in the Energy Sector," Energies, MDPI, vol. 14(7), pages 1-20, March.
    4. Sestino, Andrea & Prete, Maria Irene & Piper, Luigi & Guido, Gianluigi, 2020. "Internet of Things and Big Data as enablers for business digitalization strategies," Technovation, Elsevier, vol. 98(C).
    5. de Reuver, Mark & Sørensen, Carsten & Basole, Rahul C., 2018. "The digital platform: a research agenda," LSE Research Online Documents on Economics 80669, London School of Economics and Political Science, LSE Library.
    6. Gupta, Shaphali & Leszkiewicz, Agata & Kumar, V. & Bijmolt, Tammo & Potapov, Dmitriy, 2020. "Digital Analytics: Modeling for Insights and New Methods," Journal of Interactive Marketing, Elsevier, vol. 51(C), pages 26-43.
    7. Fahim Ullah & Samad M. E. Sepasgozar & Changxin Wang, 2018. "A Systematic Review of Smart Real Estate Technology: Drivers of, and Barriers to, the Use of Digital Disruptive Technologies and Online Platforms," Sustainability, MDPI, vol. 10(9), pages 1-44, September.
    8. Howell, Rachel & van Beers, Cees & Doorn, Neelke, 2018. "Value capture and value creation: The role of information technology in business models for frugal innovations in Africa," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 227-239.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.
    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. 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.
    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," Palgrave 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bessagnet, Arnauld & Crespo, Joan & Vicente, Jérôme, 2021. "Unraveling the multi-scalar and evolutionary forces of entrepreneurial ecosystems: A historical event analysis applied to IoT Valley," Technovation, Elsevier, vol. 108(C).
    2. Wang, Bo & Wang, Jianda & Dong, Kangyin & Dong, Xiucheng, 2023. "Is the digital economy conducive to the development of renewable energy in Asia?," Energy Policy, Elsevier, vol. 173(C).
    3. Zibiao Li & Han Li & Siwei Wang, 2022. "How Multidimensional Digital Empowerment Affects Technology Innovation Performance: The Moderating Effect of Adaptability to Technology Embedding," Sustainability, MDPI, vol. 14(23), pages 1-27, November.
    4. Wang, Bing & Ma, Ming & Zhang, Zongyi & Li, Chunhong, 2024. "How do the key capabilities of the industrial internet platform support its growth? A longitudinal case study based on the resource orchestration perspective," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    5. John A. Mathews, 2020. "Schumpeterian economic dynamics of greening: propagation of green eco-platforms," Journal of Evolutionary Economics, Springer, vol. 30(4), pages 929-948, September.
    6. Najda Hayajneh & Taghrid Suifan & Bader Yousef Obeidat & Mohammd Abuhashesh & Raed Kareem Kanaan, 2020. "The relationship between organizational changes and job satisfaction in the Jordanian telecommunication industry," Journal of Social Sciences (COES&RJ-JSS), , vol. 9(1), pages 1-20, January.
    7. Agnieszka Kuś & Dorota Grego-Planer, 2021. "A Model of Innovation Activity in Small Enterprises in the Context of Selected Financial Factors: The Example of the Renewable Energy Sector," Energies, MDPI, vol. 14(10), pages 1-17, May.
    8. Long Xue & Qianyu Zhang & Xuemang Zhang & Chengyu Li, 2022. "Can Digital Transformation Promote Green Technology Innovation?," Sustainability, MDPI, vol. 14(12), pages 1-20, June.
    9. Sören Wallbach & Katrin Coleman & Ralf Elbert & Alexander Benlian, 2019. "Multi-sided platform diffusion in competitive B2B networks: inhibiting factors and their impact on network effects," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 693-710, December.
    10. Lawrence, Catherine & Claiborne, Nancy & Zeitlin, Wendy & Auerbach, Charles, 2016. "Finish what you start: A study of Design Team change initiatives' impact on agency climate," Children and Youth Services Review, Elsevier, vol. 63(C), pages 40-46.
    11. Muhammad Khalid Anser & Zahid Yousaf & Muhammad Usman & Seemab Yousaf, 2020. "Towards Strategic Business Performance of the Hospitality Sector: Nexus of ICT, E-Marketing and Organizational Readiness," Sustainability, MDPI, vol. 12(4), pages 1-17, February.
    12. Jean-Michel Sahut & Luca Iandoli & Frédéric Teulon, 2021. "The age of digital entrepreneurship," Small Business Economics, Springer, vol. 56(3), pages 1159-1169, February.
    13. Maik Hesse & Timm Teubner & Marc T. P. Adam, 2022. "In Stars We Trust – A Note on Reputation Portability Between Digital Platforms," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 64(3), pages 349-358, June.
    14. Huigang Liang & Nianxin Wang & Yajiong Xue & Shilun Ge, 2017. "Unraveling the Alignment Paradox: How Does Business—IT Alignment Shape Organizational Agility?," Information Systems Research, INFORMS, vol. 28(4), pages 863-879, December.
    15. Büttgen, Marion & al.,, 2021. "Blockchain in Service Management and Service Research - Developing a Research Agenda and Managerial Implications," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 5(2), pages 71-102.
    16. Jun Liu & Yu Qian & Huihong Chang & Jeffrey Yi-Lin Forrest, 2022. "The Impact of Technology Innovation on Enterprise Capacity Utilization—Evidence from China’s Yangtze River Economic Belt," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    17. Chenglei Xu & Shuxin Zhu & Boru Yang & Bin Miao & Yi Duan, 2023. "A Review of Policy Framework Research on Promoting Sustainable Transformation of Digital Innovation," Sustainability, MDPI, vol. 15(9), pages 1-26, April.
    18. Matzner, Martin & Pauli, Tobias & Marx, Emanuel & Anke, Jürgen & Poeppelbuss, Jens & Fielt, Erwin & Gregor, Shirley & Sun, Ruonan & Hydle, Katja Maria & Aas, Tor Helge & Aanestad, Margunn & Gordijn, J, 2021. "Transitioning to Platform-based Services and Business Models in a B2B Environment," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 5(3), pages 143-162.
    19. Jia, Yibo & Su, Jingqin & Cui, Li & Wu, Lin & Hua Tan, Kim, 2023. "Platform business model innovation in the digitalization era: A “driver-process-result” perspective," Journal of Business Research, Elsevier, vol. 160(C).
    20. Sebastian Kussl & Andreas Wald, 2022. "Smart Mobility and its Implications for Road Infrastructure Provision: A Systematic Literature Review," Sustainability, MDPI, vol. 15(1), pages 1-20, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:7:p:4120-:d:783432. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.