Exploring the antecedents of frugal innovation and operational performance: the role of organizational learning capability and entrepreneurial orientation

Purpose This study aimed to analyze the role of organizational learning capability and entrepreneurial orientation on frugal innovation and, consequently, operational performance within the Brazilian textile industry. Design/methodology/approach The sample consisted of 257 valid questionnaires from the textile industry in the state of Santa Catarina, Brazil. Data were analyzed using structural equation modeling using SmartPLS software. Findings The results showed that organizational learning capability is a strong driver of the operational performance when mediated by frugal innovation. Evidence also showed that relationships between entrepreneurial orientation, organizational learning capability, frugal innovation and operational performance are significant once the direct effect has more power than the indirect effect. Results elucidated different outcomes that are not in accordance with previously seen studies. Moreover, the latter shines a light on a possible interference caused by the COVID-19 pandemic. Originality/value The study clarifies the relationship that entrepreneurial orientation and organizational learning capability unleash in frugal innovation and operational performance. It also shows a new situation when looking at the relationship between entrepreneurial orientation, organizational learning capability and operational performance.