Stimulating knowledge sharing behaviors for frugal innovation: the roles of inclusive leadership and competitive intensity

PurposeOwing to the growing importance of frugal innovation to the development of firms in the developing and emerging countries, the purpose of this paper is to investigate the effect of inclusive leadership (IL) on frugal innovation through the mediating roles of tacit and explicit knowledge sharing (EK). It also explores the possible moderating role of competitive intensity (CI) in the relationship between knowledge sharing (KS) and frugal innovation.Design/methodology/approachThis study collected data via a questionnaire survey of a sample of 325 participants from 112 manufacturing and service firms to validate the relationship between inclusive leadership, knowledge sharing behaviors, competitive intensity and frugal innovation. Structural equation modeling and regression are adopted to estimate the effects of inclusive leadership on frugal innovation through the mediating role of knowledge sharing and moderating role of competitive intensity.FindingsFindings reveals the significant impacts of inclusive leadership on aspects of knowledge sharing and frugal innovation. Moreover, the influences of tacit and explicit knowledge sharing on frugal innovation capability are enhanced in the intensive competitive environments.Research limitations/implicationsFuture research should investigate the potential moderating role of perceived organizational support in the relationship between specific aspects of knowledge sharing behaviors and frugal innovation.Practical implicationsThe paper provides a valuable understanding and novel approach for managers and directors of firms in developing and emerging countries to improve frugal innovation capability through inclusive leadership practices and promotion of knowledge sharing in organizations.Originality/valueThe paper is unique in its attempt to fill theoretical gaps on the relationship between inclusive leadership and frugal innovation, and advance the insights of how inclusive leadership directly and indirectly fosters frugal innovation via mediating roles of tacit and explicit knowledge sharing.