The Role of Sustainable Leadership in Delivering Frugal Innovation in Pakistan: A Mediated Moderation Model
DOI:
https://doi.org/10.47067/ramss.v8i2.508Keywords:
Frugal Innovation, Sustainable Leadership, Knowledge Management, Market Turbulence, Collaborative CultureAbstract
Innovation and sustainability are important priorities in current business landscapes. This study carries extreme importance in revealing how sustainable leadership (SL) delivers frugal innovation (FI) in organizations. Moreover, insights into the mediating effect of knowledge management (KM) and the moderating role played by collaborative culture (CC) and market turbulence (MT) for the relationship offers important information for managers looking to formulate effective strategies. This research has been quantitative in nature and used cross-sectional research design. A questionnaire was constructed for data collection and an organization was the unit of analysis. The data collection was made from top level and middle level managers working in e-commerce, IT, tech based, and handicraft firms in Pakistan. Based on a sample of 250 companies and using SmartPLS 4.0, this study reports its findings as follows. Sustainable leadership positively contributes to frugal innovations and knowledge management plays the role of complementary mediator in the relationship. Moreover, when market turbulence is greater and an organization has highly active collaborative culture, the effect of SL on FI is more pronounced. This research contributes to organization leadership theory, knowledge based view, innovation diffusion theory, social exchange theory, and industrial organization theory through its findings. It provides empirical evidence in the context of a growing economy i.e. Pakistan by establishing a positive link between SL and FI. It suggests managers focusing on frugal innovations to promote sustainable leadership and cultivate an environment of collaborative culture to be successful in the marketplace.
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