Frugal innovation and sustainable leadership in resource constrained environments: the role of tacit and explicit knowledge sharing

Purpose This study seeks to examine the relationship between sustainable leadership and frugal innovation, with tacit and explicit knowledge sharing acting as a mediator. Design/methodology/approach The research involved 339 employees from 25 manufacturing firms and employed a 2-1-1 research structure. Findings In this framework, sustainable leadership (a level 2 construct) influences frugal innovation (a level 1 variable), with the mediation of tacit and explicit knowledge sharing explaining the nature of this relationship. The findings indicate that sustainable leadership positively relates to employee frugal innovation via mediation effects through tacit and explicit knowledge sharing. Originality/value This approach offers a nuanced understanding of how leadership practices at the organizational level translate into frugal innovation at the individual level. The study enhances understanding of employee frugal innovation by developing and testing a multi-level process model.