Given the important role of resource-constraint innovation in developing and emerging nations, the purpose of this paper is to investigate the effect of transformational leadership (TL) on frugal innovation through the mediating roles of knowledge sharing (KS) behaviors and moderating role of perceived organizational support (POS).
The paper used a quantitative research method and structural equation modeling to test the relationship among the latent factors based on a sample of 315 participants from 116 firms.
Findings reveal the significant impacts of TL on frugal innovation directly or indirectly via mediating role of tacit and explicit KS behaviors. It highlights the important role of POS in fostering influence of KS behaviors on frugal innovation.
The paper provides a valuable understanding and novel approach for managers and directors of firms in developing and emerging markets to improve their firms’ frugal innovation capability through leadership practices and organizational knowledge resource.
This study contributes to bridging research gaps in the literature and advances the insights of the key antecedents and the appropriate conditions to pursue frugal innovation.
