Frugal innovation embedded in business and political ties: transformational versus sustainable leadership

Qaisar Iqbal () and Katarzyna Piwowar-Sulej ()
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Qaisar Iqbal: King Fahd University of Petroleum and Minerals
Katarzyna Piwowar-Sulej: Wroclaw University of Economics and Business

Asian Business & Management, 2023, vol. 22, issue 5, No 17, 2225-2248

Abstract: Abstract There is on ongoing debate as to whether managerial ties trigger or impede frugal innovation. By integrating social networking with the situational leadership theory, this article hypothesizes and tests whether the relationship between managerial (business and political) ties and frugal innovation is moderated by the perceived leadership style (sustainable vs. transformational). Surveying 256 representatives of SMEs in Pakistan, the findings indicate that both types of managerial ties are positively associated with frugal innovation. Transformational leadership did not affect the relationships between independent variables (both types of managerial ties) and independent (frugal innovation) variable. However, the conditional impact of sustainable leadership as compared to transformational leadership was significant and positive. From both the theoretical and practical perspectives, our study offers important implications for relationship management in fostering frugal innovation.

Keywords: Sustainable development; Resource constraint innovation; Manufacturing firms; Asia; Developing country; Cross-sectional design (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1057/s41291-023-00248-z

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