Modeling the antecedents and mechanisms that promote frugal innovation: the role of servant leadership and corporate social responsibility

Purpose The purpose of this study is to investigate the impact of servant leadership on frugal innovation through the mediating role of corporate social responsibility to employees. Design/methodology/approach This study used a quantitative research method and structural equation modeling to test hypotheses in the proposed research model based on a sample of 325 Vietnamese firms. Findings The research findings indicated that five dimensions of servant leadership including empowerment, humility, standing back, stewardship and authenticity are positively related to frugal innovation. Moreover, corporate social responsibility to employees partially mediates the connections between five servant leadership’s dimensions and frugal innovation. Research limitations/implications This study provides important insights and a novel approach for leaders of Vietnamese small and medium-sized firms to improve their firms’ frugal innovation capability through leadership practice and corporate social responsibility to employees. Originality/value This study significantly fills research gaps in the literature and advances the understanding of how servant leadership promotes corporate social responsibility to employees to improve frugal innovation.