Frugal Innovation as a Strategy for MSME Resilience in Community-Based Tourism: A Conceptual Review

Frugal innovation has emerged as a viable strategy for Micro, Small, and Medium Enterprises (MSMEs) operating within community-based tourism (CBT), particularly in rural and resource-constrained environments. The COVID-19 pandemic has further highlighted the vulnerability of these enterprises, reinforcing the need for resilience strategies that are cost-effective, sustainable, and contextually relevant. This conceptual paper explores the potential of frugal innovation in enhancing the resilience of MSMEs in CBT. Drawing on the Resource-Based View (RBV) as a theoretical framework, the paper proposes a conceptual model that links internal capabilities, such as local knowledge, creativity, and social capital, with adaptive and affordable innovation practices that support enterprise sustainability. This study provides a foundation for future empirical research and offers practical insights for policymakers and development agencies interested in empowering grassroots tourism enterprises through innovation.