Modeling the impact of servant leadership on frugal innovation: sequential mediation of collaborative culture and corporate social responsibility to employees

Purpose This study aims to examine how servant leadership promotes frugal innovation through the sequential mediating roles of collaborative culture and corporate social responsibility to employees (CSRE), with perceived organizational support as a moderating factor. Design/methodology/approach A two-stage partial least squares structural equation modeling approach was employed to analyze survey data from 412 small and medium-sized enterprises in Vietnam. Findings The findings indicate that servant leadership significantly enhances collaborative culture which fosters CSRE and ultimately leads to improved frugal innovation. Both collaborative culture and CSRE serve as significant mediators in the relationship between servant leadership and frugal innovation, supporting the proposed sequential mediation framework. The moderating effect of perceived organizational support also amplifies the impact of leadership and collaborative culture on innovation. Research limitations/implications This study provides practical insights for small and medium-sized enterprises operating under resource constraints, emphasizing the importance of leadership, culture and employee-centered CSR in driving cost-effective and sustainable innovation. Originality/value By introducing a novel sequential mediation model linking servant leadership to frugal innovation via collaborative culture and CSRE and examining perceived organizational support as a moderator, this study advances current understanding of how leadership and internal organizational practices jointly shape innovation in resource-limited contexts.