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Determinants of frugal innovation for firms in emerging markets: the roles of leadership, knowledge sharing and collaborative culture

Phong Ba Le (Hanoi University of Industry, Hanoi, Vietnam)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 20 October 2021

Issue publication date: 14 November 2023

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Abstract

Purpose

Due to the vital role of frugal innovation (FI) for firms in developing and emerging economies, the purpose of this study is to investigate the effect of transformational leadership (TL) and knowledge sharing (KS) on FI of firms in supply chains. This study aims to bring deeper insight on the correlation among the constructs by exploring and analyzing the moderating effect of collaborative culture (CC) in the KS-FI relationship.

Design/methodology/approach

The paper used the quantitative approach and structural equation modeling (SEM) to test the relationship among the latent factors in the proposed research model using data collected from 381 participants in 116 manufacturing and service firms.

Findings

The findings revealed that TL might be an important precursor to induce significant influences on FI directly or indirectly through its effect on active and passive KS processes in supply chains. In addition, the paper highlights the moderating role of CC in strengthening the impact of KS processes on FI.

Research limitations/implications

The paper provides a valuable understanding and novel approach for managers to improve firms' FI capability through leadership practice and KS processes. The research findings support the idea that FI capability of firms in developing and emerging nations will be significantly enhanced if leaders are interested in practicing TL style and fostering a climate of collaboration within organization.

Originality/value

This study contributes to bridging research gaps in the literature and advancing the insights of how TL directly and indirectly fosters FI via mediating roles of active and passive KS processes in supply chains under the climate of collaboration.

Keywords

Citation

Le, P.B. (2023), "Determinants of frugal innovation for firms in emerging markets: the roles of leadership, knowledge sharing and collaborative culture", International Journal of Emerging Markets, Vol. 18 No. 9, pp. 3334-3353. https://doi.org/10.1108/IJOEM-02-2021-0258

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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