Frugal-based innovation model for sustainable development: technological and market turbulence

Abstract

PurposeThis study draws on the upper echelon perspective and effectuation theory to put insights on the relationship between sustainable leadership and sustainable performance.Design/methodology/approachThe study had adopted the cluster-sampling approach to collect data from 500 small and medium enterprises (SMEs) established in China and India with 46.60% response rate. The SmartPLS 3.0 was employed for data analysis.FindingsThis study verified the mediating role of frugal innovation in emerging markets. Both market and technological turbulence significantly moderated the sustainable leadership-frugal innovation relationship. Nevertheless, the effect of sustainable leadership on frugal innovation did not vary for the different values of entrepreneurial bricolage.Originality/valueThis article contributes by revealing the moderating effect of market and technological turbulence as moderator. Greater market and technological turbulence led to greater impact of sustainable leadership practices on frugal innovation.