Organizational and Individual Capabilities and Implementation Mechanisms for Sustainable Value Creation through Frugal Innovation

Frugal innovation has evolved from cost efficiency to a broader sustainability approach, yet research remains fragmented on how organizations develop capabilities for its successful implementation. This study explores how organizations in resource-constrained environments integrate frugal innovation to drive sustainable value creation. Using a mixed-methods approach, the research consists of three complementary studies: (1) a qualitative multiple-case analysis of ten organizations in Colombia and Brazil to examine sustainability integration in frugal innovation processes, (2) a quantitative PLS-SEM study assessing how frugal innovation adoption influences sustainable value creation in social enterprises, and (3) a qualitative investigation of virtual mentoring processes in the development of frugal innovations. The findings provide a structured framework linking organizational capabilities, implementation mechanisms, individual skill development through mentoring, and sustainability outcomes, offering insights for academia and practice on fostering resource-efficient innovation for long-term impact.