Navigating Frugal Innovation through Resource Bricolage: Insights from Emerging Economies

The purpose of this study is to investigate the association among resource bricolage, absorptive capacity, institutional support, and frugal innovation in entrepreneurial firms, particularly in emerging economies. We collected data from 472 firms and employed a partial least square structural equation modeling for data analysis. The findings reveal that resource bricolage has a significant and positive impact on frugal innovation through the partial mediating role of absorptive capacity. However, Institutional support also positively moderates the absorptive capacity and frugal innovation relationship. The current study contributes to the existing literature by extending the resource-based view that how entrepreneurial firms can foster frugal innovation through efficient bricolage practices and knowledge management. Results reveal also the significance of absorptive capacity and institutional support in fostering frugal innovation in entrepreneurial firms. The findings offer significant insights for entrepreneurs, policymakers and institutions for developing cost-effective products and services through leverage of available resources, information utilization and obtaining government support, are essential concepts to frugal innovation.