Structural Social Capital, Practical Learning, and the Curvilinear Path to Frugal Innovation among Female Entrepreneurs

Abstract

This study investigates how structural social capital and practical learning contribute to the achievement of frugal innovation, while also assessing the nonlinear influence of structural capital on frugality outcomes. Innovation within the SME sector is often constrained by limited resources, making the pursuit of value creation through frugal approaches both challenging and essential. In this context, recognizing the forms of resource capital available and ensuring their effective management become critical for enabling firms to generate added value despite environmental constraints. The research focuses on 209 female entrepreneurs operating within traditional textile industries, a sector characterized by its dual challenge of preserving cultural heritage while simultaneously responding to pressures for operational modernization and evolving consumer preferences. Employing a variance based SEM approach, this study examines both the direct effects and quadratic relationships among the key variables. The findings are expected to offer insights for entrepreneurs and stakeholders regarding the strategic importance of social resources as a foundation for competitive advantage in resource limited environments. At the same time, the study highlights the nonlinear nature of social capital, emphasizing that only a certain degree of social embeddedness within the community optimally enhances organizational productivity.