The Impact of Frugal Innovation on Firm Performance: A Mediated Effect of Business Model Innovation
DOI:
https://doi.org/10.23726/cij.2026.1903Keywords:
frugal innovation, business model innovation, firm performance, ICT sectorAbstract
The role and impact of frugal innovation have been theoretically analysed by many authors, but empirical evidence on this relationship remains limited. To address this gap, this study aims to examine the role of frugal innovation in firm performance by exploring the mediating role of business model innovation. Data from a sample of 103 ICT firms were collected, and mediation analysis using the PROCESS Macro (Hayes) in SPSS was conducted to investigate the relationships between the variables. The study highlights that frugal innovation, when strategically integrated into an innovative business model, can significantly enhance firm performance. By empirically demonstrating the mediating role of business model innovation, our findings help bridge the gap between theory and practice in frugal innovation research and provide actionable insights for ICT companies seeking to thrive in a dynamic and resource-constrained environment.
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