PurposeGiven the importance of frugal innovation for small and medium-sized enterprises (SME) in developing countries, this study aims to explore the role of IT resources on frugal innovation through the mediating roles of knowledge sources and to what extent the relationship between sources of knowledge and frugal innovation is strengthened or weakened under the moderating effects of market turbulence.Design/methodology/approachThis is an empirical study. Data were gathered from 355 SME employees of Pakistan through a questionnaire survey; the variance-based PLS-SEM approach was used to analyze the data.FindingsFindings reveal the significant impacts of IT resources on different aspects of frugal innovation, namely, frugal functionality (FF), frugal cost (FC) and frugal ecosystem (FE). Moreover, the paper highlights the mediating roles of sources of knowledge in the relationship between IT resources and frugal innovation in frugal functionality and frugal cost. Findings also revealed that the moderation of market turbulence strengthens the effects of sources of knowledge on frugal functionality and ecosystem, but surprisingly weakens the relationship between sources of knowledge and frugal cost.Research limitations/implicationsTo bring a deeper understanding of the significant role of IT and knowledge sources, future research should examine the potential moderating role of environmental factors or perceived organizational support or mediating role of knowledge management processes in the relationship between IT resources and frugal innovation.Practical implicationsThe paper provides a valuable understanding and novel approach for directors of SMEs in developing countries to improve their frugal innovation capability through IT and knowledge resources.Originality/valueThis study contributes to bridging research gaps in the literature and advances how IT resources, directly and indirectly, help firms improve frugal innovation capability via mediating roles of sources of knowledge.

PurposeDrawing on the knowledge-based view (KBV), the research examines the impact of knowledge sources (internal and external knowledge sources) on two aspects of innovation radical and incremental innovation. Additionally, the research seeks to provide deeper insight into the link between the variables by studying how information technology (IT) resources mediate the relationship between knowledge sources and innovation capability.Design/methodology/approachThe study assessed the relationship between latent variables using a quantitative research approach and variance-based structural equation modelling on a sample of 380 individuals from 83 Pakistani manufacturing and service firms.FindingsThe study's results revealed a significant impact of knowledge sources (internal and external knowledge sources) on radical and incremental innovation. Further, the study examines the mediating role of IT resources in connecting knowledge sources and a firm's innovation capability.Research limitations/implicationsFuture studies should investigate the association among the constructs under the moderating roles of environmental turbulence to provide insight into the relationship between knowledge sources, IT resources, and innovation capability.Practical implicationsThe paper provides evidence that knowledge sources and IT resources are the key driving factors of innovation capability. Managers and directors of firms in developing and emerging countries should establish firms' knowledge sources and IT resources to improve innovation capability.Originality/valueThere is a scarcity of studies that has explored the relationship between sources of knowledge, IT resources, and specific types of innovation, namely radical and incremental innovation. The paper helps fill research gaps in the literature and advances understanding of how knowledge sources, directly and indirectly, stimulate firms' innovation capabilities via the mediating role of IT resources.

Purpose Drawing on the knowledge-based view (KBV), the purpose of the study is to examine the impact of collaborative culture (CC) on frugal innovation (FI). It also advances insight into the pathways for stimulating distinct aspects of innovation capacity by assessing the mediating effects of knowledge management (KM) processes and the moderating role of perceived organizational support (POS). Design/methodology/approach Based on the data gathered from 430 participants from 80 Pakistani manufacturing and service firms, this study used structural equation modeling to evaluate hypotheses in the established research model. Findings The findings reveal that CC positively fosters the KM processes and different aspects of FI. The results indicated the positive direct impact of KM processes on frugal functionality (FF) and frugal cost (FC) while insignificant on the frugal ecosystem (FE). This study found partial mediation of KM processes on the relationship among CC, FF and FC, but the KM process does not mediate the relationship between CC and FE. The results also demonstrated that POS moderation enhances the impacts of CC on KM processes and FF while notably weakening the impacts of CC on FC and FE. Research limitations/implications To understand the crucial role of knowledge capital in companies’ innovation capability, future research should examine the mediating function of KM capability (knowledge process capability and knowledge infrastructure capability) and moderating role of environmental turbulence in the relationship between CC and different aspects of innovation capability. Practical implications This study significantly advances a better understanding of the relationship between CC and specific facets of innovation capacity by emphasizing the importance of driving the KM process and improving POS. Originality/value This study has contributed to the theoretical and practical efforts on KBV, emphasizing the critical importance of CC in fostering a conducive environment for KM processes and innovation.

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