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Sustainable Development through Frugal Innovation—A Challenge or an Opportunity?
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Sustainable Development through Frugal Innovation—A Challenge or an Opportunity?

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (15 January 2023) | Viewed by 52010

Special Issue Editors

Dr. Eglantina Hysa

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Guest Editor
Department of Economics, Epoka University, Tirana 1032, Albania
Interests: growth economics; economic theory; economic development; poverty analysis; economic analysis; economics of education; foreign direct investment; income inequality; sustainable development strategies; economic growth; regional economics; quality evaluation; higher education quality; economic policy analysis; economics analysis; applied macroeconomics; academic development; sustainable development education
Special Issues, Collections and Topics in MDPI journals
Prof. Dr. Félix Puime Guillén

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Guest Editor
Department of Business, Coruña University, Spain
Interests: wellbeing; entrepreneurship; innovation; sustainability
Dr. Alba Kruja

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Guest Editor
Department of Business Administration, Epoka University, Albania
Interests: entrepreneurship; innovation; performance; sustainability
Prof. Dr. Mirela Panait

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Guest Editor
Faculty of Economic Sciences, Petroleum-Gas University of Ploieşti, 100680 Ploieşti, Romania
Interests: energy transition; corporate social responsibility; sustainable development; international finance
Special Issues, Collections and Topics in MDPI journals
Prof. Dr. Ahsan Akbar

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Guest Editor
International Business School, Guangzhou College of South China University of Technology, Guangzhou 510080, China
Interests: enterprise sustainability; corporate life cycle; corporate social responsibility; green investments; energy economics
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

In a resource-constrained ecosystem, not only emerging but also developed markets face an uphill of challenge to innovate. Frugal innovation refers to the process of economizing the usage of scarce resources by reducing product costs, which results in not only building technologically advanced solutions, but also enabling solution integration for emerging markets. These solutions have proven to be effective, socially valuable, economical, profitable, and in some cases, their business models have disrupted the existing markets. Albert (2019) in his study associates frugal innovation specifically with ecological and social sustainability, recommending the use of the term “ecologically sustainable frugal innovation” for frugal innovation with a positive connection to ecological sustainability. Meanwhile, Von Janda et al. (2020) further extend the concept by defining frugal innovation as a four-dimensional put-up of cost of consumption, sustainability, simplicity, and basic quality. Following this approach, frugal innovation contributes not only to economic and ecological sustainability but also to social sustainability through considering the consumption impact. For a sustainable development achievement, while designing innovative business models, entrepreneurs need to consider the economic, ecological, and social aspects altogether. Frugal innovation is the mean which creates value for customers, investors, and society as a whole by preserving financial and natural resources not only crucial for the advancement of developing but also for developed countries. This business model needs to be further explored by the policymakers, implemented and developed by entrepreneurs, and validated and advocated by the academicians.

Another dimension of frugal innovation is its linkage with the concept of sharing economy, being an innovative business model that has grown up with the revolution of Industry 4.0. Also known as a collaborative economy or peer-to-peer sharing, it provides several opportunities and benefits to its users. Nonetheless, as an emerging business model, it is facing developmental and operational challenges in the world markets. Furthermore, it is equally imperative to explore the possible consequences of frugal innovation to mitigate the impact of climate change on corporate efficiency. Likewise, the positive impacts of frugal innovation on environmental variables in various regional settings is an interesting and under-researched area.

The aim of this Special Issue is to present state-of-the-art theoretical and empirical advances in research on sustainable development, frugal economy, and environmental innovation to stimulate and foster discussions on these topics.

Assoc. Prof. Dr. Eglantina Hysa
Prof. Dr. Félix Puime Guillén
Dr. Alba Kruja
Assoc. Prof. Dr. Mirela Panait
Assoc. Prof. Dr. Ahsan Akbar
Guest Editors

Manuscript Submission Information

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Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • Frugal innovation
  • Sustainable development
  • Circular economy
  • Ecological sustainability
  • Value co-creation
  • Sharing economy
  • Sustainable business models

Published Papers (15 papers)

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Research

18 pages, 2358 KiB  
Article
Influence of Eco-Innovation and Recycling on Raw Material Consumption; Econometric Approach in the Case of the European Union
by Victor Platon, Florin Marius Pavelescu, Marius Surugiu, Simona Frone, Raluca Mazilescu, Andreea Constantinescu and Florina Popa
Sustainability 2023, 15(5), 3996; https://doi.org/10.3390/su15053996 - 22 Feb 2023
Cited by 8 | Viewed by 1239
Abstract
The main objective of this paper is to identify the intensity and the sense of the impact that eco-innovation and recycling exert on raw material consumption in the European Union member-states. The basic hypothesis is that eco-innovation and recycling have a significant influence [...] Read more.
The main objective of this paper is to identify the intensity and the sense of the impact that eco-innovation and recycling exert on raw material consumption in the European Union member-states. The basic hypothesis is that eco-innovation and recycling have a significant influence on raw material consumption. The authors consider that, in the long run, by promoting eco-innovation and recycling, countries will minimize their demand and use of raw materials. In the paper, the material footprint per capita has been considered as an adequate indicator to measure the material consumption induced by economic and social activities. The model used has estimated the influence of eco-innovation and recycling on the material footprint per capita using panel data regression by considering the 27 EU countries, for the 2010–2019 time period. The authors found that the most adequate econometric model is the panel model with fixed effects. The respective econometric model validates the hypothesis that eco-innovation and recycling have significant influence on reducing the material footprint per capita and reveals heterogeneity existing among EU countries. At the same time, the model shows the intensity of influence exerted by each regressor. The eco-innovation and recycling have an important role in decreasing the material footprint per capita and should be in the centre of policies aimed at decoupling the economic growth from the raw material consumption. Full article
(This article belongs to the Special Issue Sustainable Development through Frugal Innovation—A Challenge or an Opportunity?)
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30 pages, 6020 KiB  
Article
A Methodological Framework for Developing a Smart-Tourism Destination in the Southeastern Adriatic–Ionian Area
by Valentina Ndou, Eglantina Hysa and Ylenia Maruccia
Sustainability 2023, 15(3), 2057; https://doi.org/10.3390/su15032057 - 21 Jan 2023
Cited by 3 | Viewed by 1817
Abstract
This paper presents a methodological framework aiming to support the creation of a smart-tourism destination. Specifically, the study is realised in the frame of NEST, a European Union Interreg project aiming to create a smart-tourism destination in the Adriatic–Ionian area. Therefore, the study [...] Read more.
This paper presents a methodological framework aiming to support the creation of a smart-tourism destination. Specifically, the study is realised in the frame of NEST, a European Union Interreg project aiming to create a smart-tourism destination in the Adriatic–Ionian area. Therefore, the study focuses on the southeastern Adriatic–Ionian area, as a portion of the European macro-region including the Italian regions of Molise and Apulia and the Balkan countries of Albania and Montenegro. This area presents a clear vocation for tourism, with a distinctive cultural heritage, attractive natural landscapes, and old culinary traditions offering a variety of eno-gastronomic and folk craft products. In the frame of the EU neighbour policies and in coherence with the objectives of the EU smart specialization strategy, several initiatives have been promoted for innovating the tourism offering in this area. Despite this, the full achievement of the creation of an Adriatic–Ionian smart destination calls for the adoption of a multidimensional strategy able to leverage knowledge-intensive dynamics of collaboration. This paper, therefore, aims to highlight the opportunities of adoptions and implications of this methodological framework for the cross-border marketing and management of the Adriatic–Ionian smart destination. Full article
(This article belongs to the Special Issue Sustainable Development through Frugal Innovation—A Challenge or an Opportunity?)
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16 pages, 951 KiB  
Article
The Impact of New Energy Vehicle Product Attributes on Consumer Purchase Intention in the Backdrop of Sustainable Development Goals
by Yueying Wang and Ying Tian
Sustainability 2023, 15(3), 1989; https://doi.org/10.3390/su15031989 - 20 Jan 2023
Cited by 1 | Viewed by 2607
Abstract
In the backdrop of the ‘dual carbon goal’, which aims to promote sustainable development of China, adoption of new energy vehicles (NEVs) is an important measure to help improve the environment, so it is of great significance to investigate the purchase intention of [...] Read more.
In the backdrop of the ‘dual carbon goal’, which aims to promote sustainable development of China, adoption of new energy vehicles (NEVs) is an important measure to help improve the environment, so it is of great significance to investigate the purchase intention of NEVs. Previous studies have established that subsidies and various product attributes could affect consumers’ purchase intention toward NEVs. As government subsidies have been on the decline in recent years, product attributes of NEVs need to be given more attention. However, there have been limited studies that quantitatively analyze the impact of product attributes of NEVs on purchase intention. Therefore, to fill this gap and help further expand the NEV market, this study investigated consumers’ adoption of NEVs empirically from the perception of product attributes. A questionnaire survey and structural equation model (SEM) were used for data collection and analysis. The results indicate that (1) both the functional and symbolic attributes of NEVs had a significant positive impact on consumers’ purchase intention; (2) both the functional and symbolic attributes of NEVs had a significant positive impact on consumers’ purchase intention through consumers’ perceived value; and (3) citizens’ environmental awareness positively moderated the relationship between products attributes and purchase intention. According to the results, to meet consumers’ needs of daily driving and self-image expression, new energy vehicle enterprises need to focus on improving the products in both functional and symbolic aspects by using various marketing strategies. Full article
(This article belongs to the Special Issue Sustainable Development through Frugal Innovation—A Challenge or an Opportunity?)
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14 pages, 619 KiB  
Article
Value Creation through Frugal Innovation, Innovation Capability and Knowledge Sharing in a Circular Economy
by Zahid Yousaf, Mirela Panait, Umair Tanveer, Alina Cretu, Andrei Hrebenciuc and Sheikh Muhammad Zahid
Sustainability 2022, 14(14), 8504; https://doi.org/10.3390/su14148504 - 11 Jul 2022
Cited by 3 | Viewed by 2382
Abstract
This study aims to examine the direct effect of innovation capability on value creation. The mediating role of frugal innovation and the moderating role of knowledge sharing are also explored between innovation capability and value creation link. This exploratory study uses quantitative and [...] Read more.
This study aims to examine the direct effect of innovation capability on value creation. The mediating role of frugal innovation and the moderating role of knowledge sharing are also explored between innovation capability and value creation link. This exploratory study uses quantitative and cross-sectional data collected through questionnaires. Structural equation modelling (SEM) was used to examine the hypothesis. Findings show a significant positive impact of innovation capability on value creation. Results proved that frugal innovation mediates the relations between innovation capability and value creation. Knowledge sharing strengthens the association between innovation capability and value creation in their association. Our research provides a framework for the sustainable advancement of SMEs in a circular economy and recommends that they increase the value creation of the products/services through frugal innovation based on the innovation capabilities. Moreover, knowledge-sharing practices speed up the interplay between innovation capability and value creation in the circular economy. Full article
(This article belongs to the Special Issue Sustainable Development through Frugal Innovation—A Challenge or an Opportunity?)
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13 pages, 418 KiB  
Article
Organizational Innovativeness in the Circular Economy: The Interplay of Innovation Networks, Frugal Innovation, and Organizational Readiness
by Zahid Yousaf, Daniela Mihai, Umair Tanveer, Mădălina Brutu, Smaranda Toma and Sheikh Muhammad Zahid
Sustainability 2022, 14(11), 6501; https://doi.org/10.3390/su14116501 - 26 May 2022
Cited by 5 | Viewed by 2368
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 [...] Read more.
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. Full article
(This article belongs to the Special Issue Sustainable Development through Frugal Innovation—A Challenge or an Opportunity?)
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21 pages, 2808 KiB  
Article
How do Internal Control Environments Connect to Sustainable Development to Curb Fraud in Brazil?
by Debora Kobayashi Mendes de Oliveira, Joshua Onome Imoniana, Valmor Slomski, Luciane Reginato and Vilma Geni Slomski
Sustainability 2022, 14(9), 5593; https://doi.org/10.3390/su14095593 - 06 May 2022
Cited by 3 | Viewed by 2604
Abstract
This paper investigates the connection of internal control environment to sustainable development goals to curb fraud in Brazil. We drew on the interpretivist and constructivist perspectives with discourse analysis. Data corpus consists of interviews of 20 respondents who are external auditors, internal auditors, [...] Read more.
This paper investigates the connection of internal control environment to sustainable development goals to curb fraud in Brazil. We drew on the interpretivist and constructivist perspectives with discourse analysis. Data corpus consists of interviews of 20 respondents who are external auditors, internal auditors, and employees of the controller’s department of an organization of ecommerce and archival documents. Results did not find any significant relationship between the connection of internal control functions (ICF) and the Sustainable Development Goals (SDGs) inasmuch as the connection of ICF to efficiency is tied to policies in compliance with standards, management tone, roles of enforcement, accountability, and adherence and obedience of rules. Triangulating SDG-16 with the dimensions of the control environment, fraud manifests mainly as a result of lack of commitment to integrity and values, as well as ineffectiveness of monitoring functions. This study concludes for the building of effective, accountable and even institutions with the embedding monitoring functions to sustain development goals. Since ex ante literatures examined the conceptual framework in isolation, this study connects it to sustainable development goals. Finally, this study signals an implication in the internal control literature as it clarifies the scientific theories and practical baseline of internal control environment to the policymakers, practitioners, and academia in view of the way forward on the connection of ICF to the SDG in the fight against corporate frauds. Full article
(This article belongs to the Special Issue Sustainable Development through Frugal Innovation—A Challenge or an Opportunity?)
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16 pages, 287 KiB  
Article
A Frugal Eco-Innovation Policy? Ecological Poverty Alleviation in Contemporary China from a Perspective of Eco-Civilization Progress
by Qingzhi Huan, Yiwen Chen and Xincong Huan
Sustainability 2022, 14(8), 4570; https://doi.org/10.3390/su14084570 - 12 Apr 2022
Cited by 10 | Viewed by 2083
Abstract
Ecological poverty alleviation is a discursive and policy system with rich theoretical implications, comprehensive policy tools and multiple practical approaches, constituting an important dimension of contemporary Chinese poverty alleviation theory and practice, or a complete case of eco-innovation. Promoting green development, establishing ecological [...] Read more.
Ecological poverty alleviation is a discursive and policy system with rich theoretical implications, comprehensive policy tools and multiple practical approaches, constituting an important dimension of contemporary Chinese poverty alleviation theory and practice, or a complete case of eco-innovation. Promoting green development, establishing ecological public-welfare compensation mechanisms and organizing ecological relocation are the three major modes or paths of implementing this policy. It is undoubtedly a historic success on the one hand and has still great potential for self-adjustment or self-transformation on the other from a perspective of eco-civilization progress or sustainability. Full article
(This article belongs to the Special Issue Sustainable Development through Frugal Innovation—A Challenge or an Opportunity?)
11 pages, 840 KiB  
Article
Nexus of Innovation Network, Digital Innovation and Frugal Innovation towards Innovation Performance: Investigation of Energy Firms
by Abdelmohsen A. Nassani, Crenguta Sinisi, Loredana Paunescu, Zahid Yousaf, Mohamed Haffar and Ahmad Kabbani
Sustainability 2022, 14(7), 4330; https://doi.org/10.3390/su14074330 - 06 Apr 2022
Cited by 10 | Viewed by 3249
Abstract
The present research aims to find how firms achieve innovation performance through innovation networks. This study also explores the mediating role of digital innovation and the moderating role of frugal innovation. Quantitative research design is used for data collection and analysis. To analyze [...] Read more.
The present research aims to find how firms achieve innovation performance through innovation networks. This study also explores the mediating role of digital innovation and the moderating role of frugal innovation. Quantitative research design is used for data collection and analysis. To analyze the study’s hypotheses we select the energy firms which aim to attain innovation performance. An indirect effect with Soble test was used to check mediation analysis. The results proved that the innovation performance of energy firms is predicted by innovation networks. Our findings proved that digital innovation acts as a mediator between innovation networks and innovation performance links. Our results also show that frugal innovation strengthens the interplay between innovation networks and innovation performance links. This study highlights how energy firms can stabilize innovation performance through the combined influence of innovation networks, digital innovation and frugal innovation. The managers of energy firms should prefer innovation networks to update their knowledge about the upcoming/latest procedures to achieve innovation performance. Moreover, the role of digital innovation in the current digital world is also very important, and the present study used it as mediator. Full article
(This article belongs to the Special Issue Sustainable Development through Frugal Innovation—A Challenge or an Opportunity?)
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12 pages, 568 KiB  
Article
Towards the Achievement of Frugal Innovation: Exploring Major Antecedents among SMEs
by Abdelmohsen A. Nassani, Crenguta Sinisi, Daniela Mihai, Loredana Paunescu, Zahid Yousaf and Mohamed Haffar
Sustainability 2022, 14(7), 4120; https://doi.org/10.3390/su14074120 - 30 Mar 2022
Cited by 5 | Viewed by 2257
Abstract
The study in hand investigates the impact of the Internet of things (IoT) and digital platforms on frugal innovation. Furthermore, we also tested the intervening role of digital platforms and moderating role of organizational readiness. Data were collected from SMEs and the collected [...] Read more.
The study in hand investigates the impact of the Internet of things (IoT) and digital platforms on frugal innovation. Furthermore, we also tested the intervening role of digital platforms and moderating role of organizational readiness. Data were collected from SMEs and the collected data were analyzed with various statistical techniques. Findings shown that the IoT positively affects digital platforms and frugal innovation. Results proved that digital platforms mediate the association between the IoT and frugal innovation. Furthermore, organizational readiness also moderates on the association between digital platforms and frugal innovation. The findings revealed that only those businesses that update their business operations according to the needs of their customers can achieve success. Frugal innovation is an emerging concept, and its achievement is a very tricky and complex task. This study shows that only those businesses that update their business operations using the IoT and digital platforms can achieve success. Moreover, modern SMEs should be able to adapt to the required changes in their business activities. Hence, SMEs also require some strategic changes in their operations in order to cope with changing business circumstances. Full article
(This article belongs to the Special Issue Sustainable Development through Frugal Innovation—A Challenge or an Opportunity?)
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14 pages, 1510 KiB  
Article
Can the Economic Value Added Be Used as the Universal Financial Metric?
by Zbysław Dobrowolski, Grzegorz Drozdowski, Mirela Panait and Arkadiusz Babczuk
Sustainability 2022, 14(5), 2967; https://doi.org/10.3390/su14052967 - 03 Mar 2022
Cited by 15 | Viewed by 4109
Abstract
Previous research into Economic Value Added (EVA) has extensively described it as a business metric of firms. Still, no studies have confirmed or denied that EVA is a universal metric and that one may use EVA in unstable markets in the same way [...] Read more.
Previous research into Economic Value Added (EVA) has extensively described it as a business metric of firms. Still, no studies have confirmed or denied that EVA is a universal metric and that one may use EVA in unstable markets in the same way as in stable and developed economies. Meanwhile, the green energy revolution, ensuring carbon neutrality through green innovations, requires enormous investments, and the projects realised must be appropriately tailored. These projects are realised by different firms, including those from developing countries, and investors need solid financial metrics. The study determines whether EVA is a universal metric of owners’ value in the energy sector. The research proves that this metric does not correctly reflect the limitations of emerging markets, can lead to incorrect managerial decisions and limit shareholders’ value. Therefore, there is a need to reanalyse financial metrics used in financial planning, including EVA. The study eliminates this research gap and, based on data from seven countries and the Euro Zone, explains why one may not perceive the currently used EVA formula as a universal financial metric. Consequently, the study modifies the EVA formula and presents a universal solution tailored to unstable economies. In the conducted research, literature studies were used, taking into account the methodology of a systematic literature review, including bibliometric analysis. Based on this review, it is shown that little is known about whether EVA as a financial measure can be used in energy management. Two conclusions emerged: first, the research contributes to developing the business and management science; second, identifying risks associated with EVA metrics helps practitioners. In addition, the study defined further research directions. Full article
(This article belongs to the Special Issue Sustainable Development through Frugal Innovation—A Challenge or an Opportunity?)
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36 pages, 5997 KiB  
Article
Exploring the Research Regarding Frugal Innovation and Business Sustainability through Bibliometric Analysis
by Adriana Dima, Alexandru-Mihai Bugheanu, Ruxandra Dinulescu, Ana-Madalina Potcovaru, Constanta Alice Stefanescu and Irinel Marin
Sustainability 2022, 14(3), 1326; https://doi.org/10.3390/su14031326 - 25 Jan 2022
Cited by 29 | Viewed by 5103
Abstract
Nowadays, innovation is valued as being of utmost significance when evaluating measures of sustainable development and performance constructs. The current research develops investigations into the field of frugal innovation (FI) and how this process can contribute to business sustainability. This study performs a [...] Read more.
Nowadays, innovation is valued as being of utmost significance when evaluating measures of sustainable development and performance constructs. The current research develops investigations into the field of frugal innovation (FI) and how this process can contribute to business sustainability. This study performs a comprehensive evaluation of scientific production through the quantitative method of bibliometric analysis to facilitate our understanding of the current structure of studies and to highlight future research paths on FI and business sustainability. The paper maps the literature by narrowing its research topics and identifying certain patterns. Using the Web of Science database (WoS) on a sample of 2072 documents, descriptive and performance analyses were conducted. The VOSviewer software was used to perform the science mapping of the conceptual, intellectual, and social structure that provides scholars with a quantified and graphic representation of the FI and business sustainability field. The trend towards the analysis of business sustainability and consumer behaviour in the context of FI is highlighted. Annual scientific production and citation analysis reveal significant growth in international interest and scientific production, indicating an increasing line of inquiry for this topic at the start of the twenty-first century. The prominent scholars in the field are of European origin, while the highly active countries in the subject of FI and business sustainability are the USA, Germany, England, the Netherlands, and India, with major collaborations across the globe. This paper covers the limits identified by previous scholars by detailing the knowledge base and by using science mapping tools to document the structure of the literature; distinguish key journals, articles, and authors; and highlight new emerging topics of research. Full article
(This article belongs to the Special Issue Sustainable Development through Frugal Innovation—A Challenge or an Opportunity?)
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12 pages, 413 KiB  
Article
Hegemony of Network Capabilities, Frugal Innovation and Innovation Strategies: The Innovation Performance Perspective
by Mohamed Haffar, Rasim Ozcan, Magdalena Radulescu, Nicoleta Isac and Abdelmohsen A. Nassani
Sustainability 2022, 14(1), 2; https://doi.org/10.3390/su14010002 - 21 Dec 2021
Cited by 8 | Viewed by 3487
Abstract
The emergence of advanced technologies has brought new challenges and opportunities for all kinds of business organizations. In a technologically advanced era, innovation plays a dominant role for the successful operation of the commercial landscape. Therefore, the current study was conducted to investigate [...] Read more.
The emergence of advanced technologies has brought new challenges and opportunities for all kinds of business organizations. In a technologically advanced era, innovation plays a dominant role for the successful operation of the commercial landscape. Therefore, the current study was conducted to investigate the impact of network capabilities (NC) and frugal innovation (FI) on innovation performance (IP). Furthermore, the mediating role of FI and moderating role of innovation strategies has also been tested on the link between NC and IP. Small and medium enterprises (SMEs) registered with small and medium enterprises development authorities (SMEDA) were approached for the completion of the current study. Only 509 owner/managers agreed to participate. A quantitative research design was employed for the current study. During the two–three months process of data collection only 387 complete responses were received from the SMEs working in Pakistan’s big cities. Correlation, regression and bootstrap methods were applied to test the study hypotheses. The findings revealed that NC positively affect FI and IP. Furthermore, the findings also confirmed the mediating effect of FI between NC and IP link. The performance of SMEs working in emerging economies is largely based on their innovative activities. In this dynamic scenario SMEs’ survival is attached to continuous IP in their products and services. Full article
(This article belongs to the Special Issue Sustainable Development through Frugal Innovation—A Challenge or an Opportunity?)
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26 pages, 955 KiB  
Article
Sustainable Business Model and Corporate Performance: The Mediating Role of Sustainable Orientation and Management Accounting Control in the United Arab Emirates
by Enas Nadher Al-Baghdadi, Ahmad Abu Alrub and Husam Rjoub
Sustainability 2021, 13(16), 8947; https://doi.org/10.3390/su13168947 - 10 Aug 2021
Cited by 11 | Viewed by 3994
Abstract
This study aimed to investigate the mediating role of management accounting control systems (MACS) and sustainable innovations orientation (SIO) in the relationship between business model innovations (BMI) and overall corporate performance. A total of 355 managers drawn from different types of manufacturing firms [...] Read more.
This study aimed to investigate the mediating role of management accounting control systems (MACS) and sustainable innovations orientation (SIO) in the relationship between business model innovations (BMI) and overall corporate performance. A total of 355 managers drawn from different types of manufacturing firms in the United Arab Emirate (UAE) participated in the study, and the collected data were analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM) to test the structural model with the aid of Smart PLS 3. The findings from the study revealed that BMI does not directly influence SIO but has an indirect effect through MACS. Moreover, this study revealed that MACS mediate the relationship between BMI and financial performance. In addition, the argument that SIO influences overall corporate per-formance was supported with our findings. Finally, it was established in this study that MACS and SIO partially mediate the relationship between BMI and environmental performance as well as BMI and employee performance. Full article
(This article belongs to the Special Issue Sustainable Development through Frugal Innovation—A Challenge or an Opportunity?)
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25 pages, 1300 KiB  
Article
Finances and National Economy: Frugal Economy as a Forced Approach of the COVID Pandemic
by Otilia Manta, Eglantina Hysa and Alba Kruja
Sustainability 2021, 13(11), 6470; https://doi.org/10.3390/su13116470 - 07 Jun 2021
Cited by 14 | Viewed by 2905
Abstract
This paper aims to create an image both in terms of description and in terms of graphical representation, with multiannual coverage (2007–2019), the evolution of the financial indicators of the population, and their impact on the national economy. The main objective is to [...] Read more.
This paper aims to create an image both in terms of description and in terms of graphical representation, with multiannual coverage (2007–2019), the evolution of the financial indicators of the population, and their impact on the national economy. The main objective is to establish the basic pillars of the concentrated table of population financial indicators in terms of the values of absolute primary indicators, on the basis of which the values of the three relevant relative indicators that characterize the financial situation of the population were calculated directly for the potential and performance of the national economy, especially in the current context of the COVID-19 pandemic. The research methodology was based on a series of numerical data from public databases, tools, and appropriate research methods based on the calculation of primary indicators, and indicators derived by appropriate calculation formulas, for the identification of factors influencing the financial status of the population at and a comparative analysis of the financial assets and liabilities of households in Romania and the European Union. The results of the paper are given by the evolution of primary indicators on the characterization of the financial situation of the population in 2007–2019, especially for the active population, and are directly influenced by the quality of eligible employment and employed adults, as well as the sustainability of the national economy. The personal contribution of the research team consists of the mathematical correlations given by the population finances for the economy of a state, which are extremely relevant, especially since, depending on their positive or negative levels, systemic financial and social imbalances are created with direct impact on the sustainability of the national economy. Thus, we want to determine these financial indicators relevant to the economy. Additionally, due to the COVID-19 pandemic, the related issues to the population finances have aggravated and as such, there is a need for structural changes and adoptions. Finally, as an immediate and less costly solution, this study comes up with the suggestion of shifting the national economy toward frugality, therefore, significantly supporting sustainable development. Full article
(This article belongs to the Special Issue Sustainable Development through Frugal Innovation—A Challenge or an Opportunity?)
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28 pages, 791 KiB  
Article
Towards Sustainable Digital Innovation of SMEs from the Developing Countries in the Context of the Digital Economy and Frugal Environment
by Zahid Yousaf, Magdalena Radulescu, Crenguta Ileana Sinisi, Luminita Serbanescu and Loredana Maria Păunescu
Sustainability 2021, 13(10), 5715; https://doi.org/10.3390/su13105715 - 19 May 2021
Cited by 62 | Viewed by 7928
Abstract
This study aims to explore the direct impact of the digital orientation, Internet of Things (IoT) and digital platforms on the sustainable digital innovation in the context of the digital economy and frugal environment. This study also investigated the mediating role of the [...] Read more.
This study aims to explore the direct impact of the digital orientation, Internet of Things (IoT) and digital platforms on the sustainable digital innovation in the context of the digital economy and frugal environment. This study also investigated the mediating role of the digital platforms in these relations. The study was based on the quantitative research design and data were collected from the 397 CEOs and managing directors of Small and Medium Enterprises in Pakistan. Correlation and structural equation modeling approaches were applied for the analysis and testing of the hypotheses. Results revealed that the digital orientation, IoT and digital platform are major antecedents of the sustainable digital innovation. Results also show that the digital platforms mediate between both digital orientation-sustainable digital innovation link and IoT-sustainable digital innovation link. The rapid pace of change in the technology has forced the business organizations to think out of box and align their operational mechanism accordingly. The need for the sustainable digital innovation is a major need of the current decade for meeting the increasing demands of the society in a sustainable way. Organizations, especially SMEs, should be able to deal with these challenges and rapid technological transformations through cost effective frugal business models. The frugal innovation is an important element of sustainable digital innovation enables SMEs to reduce resources usage and waste and to enhance sustainable economic activities. In this way, they can develop and gain advantages in this highly competitive digital environment. This is the first study showing the bright harmony of the digital orientation, IoT and digital platforms for achieving the sustainable digital innovation in the rapid evolving digital economy. Full article
(This article belongs to the Special Issue Sustainable Development through Frugal Innovation—A Challenge or an Opportunity?)
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