Organizational Innovativeness in the Circular Economy: The Interplay of Innovation Networks, Frugal Innovation, and Organizational Readiness

Abstract

Due to technological advancements, all types of businesses confront new opportunities. In the contemporary era of technology, innovation performs a key role in successful commercial landscape operations. Therefore, this research was conducted to examine the effect of the innovation network (IN) on organizational innovativeness (OI). Moreover, the mediating effects of frugal innovation (FI) and the moderating role of organizational readiness (OR) have also been examined. Data collection through a cross-sectional method was conducted for this study from SMEs. Some 442 managers and owners provided correct responses, which were used for further analysis. SEM was used for testing the hypotheses of the current study. The results showed that the innovation network positively affects organizational innovativeness. Furthermore, the outcomes also validated that frugal innovation plays a mediating role between the innovation network and the organizational innovativeness link. The SMEs working in the circular economy are mainly dependent on their innovative activities/actions. In the current dynamic scenario, the survival of SMEs is linked to continuous organizational innovativeness in their products/services.

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