Doing more with less: role of grit, bricolage and frugal innovation to drive circular entrepreneurship in Industry 5.0

Purpose Traditionally, circular economy research has focused mostly on policy, technology and institutional factors, with minimal understanding of how entrepreneurial behaviour is translated into firm-level capabilities that enable circular economy practices (CEC). This study aims to examine how entrepreneurial grit drives CEC through green entrepreneurial bricolage (GEB) and frugal innovation capabilities (FICs) within the Industry 5.0 (I5.0) context. Design/methodology/approach The theoretical framework is underpinned by self-regulation and dynamic capabilities theories. A survey of 219 entrepreneurial manufacturing firms operating in Malaysia was conducted. A hybrid structural equation modeling (SEM)–artificial neural network (ANN) approach was used. Findings The SEM outcomes demonstrate that entrepreneurial grit strengthens GEB and FIC, which subsequently enhance CEC. The model explains 50.8% of the variance in CEC, while the ANN outcomes exhibit that FIC is the strongest predictor of CEC, followed by perseverance and GEB. Originality/value The present study advances circular economy research by understanding CEC from a behavioural capability perspective. It demonstrates how entrepreneurial grit is practically successful when converted into GEB and FIC. The findings also suggest that small and medium enterprises should emphasize frugal innovation and resource recombination as practical paths for circular transformation in I5.0.