Prioritizing barriers to implementing frugal innovation: a TOPSIS approach

Purpose This study aims to examine and ranks the predominant barriers that hinder the practice of frugal innovation within Vietnamese small- and medium-sized enterprises (SMEs). Design/methodology/approach The Technique for Order of Preference by Similarity to Ideal Solution approach, recognized as an effective method for ranking critical factors, was applied to uncover the key challenges encountered in adopting frugal innovation within Vietnamese enterprises. The authors gathered data from eight specialists across various Vietnamese firms, all of whom acted as decision-makers in responding to the survey and possessed several years of professional experience in the field of innovation. Findings In the case of Vietnamese SMEs, 13 barriers to frugal innovation were systematically identified and ranked. The most significant barriers include difficulties in developing a frugal mindset, a lack of reliable consumer data and limited support from top management. Conversely, fear of competitors and prototyping challenges during product development were found to be the least influential obstacles. Originality/value By focusing on a transitional economy, this research ranks the barriers to frugal innovation in Vietnamese SMEs, thereby expanding the literature on frugal innovation adoption and offering practical recommendations for implementation. The findings offer both scholars and practitioners a detailed understanding of the challenges surrounding frugal innovation, particularly aiding SMEs in improving decision-making efficiency and enhancing business performance.