Knowledge management process as a mediator between collaborative culture and frugal innovation: the moderating role of perceived organizational support

Abstract

PurposeDrawing on the knowledge-based view (KBV), the purpose of the study is to examine the impact of collaborative culture (CC) on frugal innovation (FI). It also advances insight into the pathways for stimulating distinct aspects of innovation capacity by assessing the mediating effects of knowledge management (KM) processes and the moderating role of perceived organizational support (POS).Design/methodology/approachBased on the data gathered from 430 participants from 80 Pakistani manufacturing and service firms, this study used structural equation modeling to evaluate hypotheses in the established research model.FindingsThe findings reveal that CC positively fosters the KM processes and different aspects of FI. The results indicated the positive direct impact of KM processes on frugal functionality (FF) and frugal cost (FC) while insignificant on the frugal ecosystem (FE). This study found partial mediation of KM processes on the relationship among CC, FF and FC, but the KM process does not mediate the relationship between CC and FE. The results also demonstrated that POS moderation enhances the impacts of CC on KM processes and FF while notably weakening the impacts of CC on FC and FE.Research limitations/implicationsTo understand the crucial role of knowledge capital in companies’ innovation capability, future research should examine the mediating function of KM capability (knowledge process capability and knowledge infrastructure capability) and moderating role of environmental turbulence in the relationship between CC and different aspects of innovation capability.Practical implicationsThis study significantly advances a better understanding of the relationship between CC and specific facets of innovation capacity by emphasizing the importance of driving the KM process and improving POS.Originality/valueThis study has contributed to the theoretical and practical efforts on KBV, emphasizing the critical importance of CC in fostering a conducive environment for KM processes and innovation.