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Abstract
This empirical research aims at determining whether knowledge absorptive capacity (ACAP) affects frugal innovation in Mexican manufacturing SMEs, and to determine their performance level in both variables. For this purpose, a survey-type questionnaire was used to collect the data, which was randomly applied to a sample of 249 small and medium-sized enterprises (SMEs), using a confidence level of 95% and a margin of error of 6%. The survey was responded by 200 managers or owners of manufacturing SMEs in the state of Guanajuato, Mexico. The results obtained through partial least squares structural equation modeling (PLS-SEM) indicate that ACAP has a strong positive and significant influence on frugal innovation. Likewise, it was identified that this type of manufacturing companies has a low level of ACAP and frugal innovation performance, so it is essential that decision makers focus their efforts on the acquisition and exploitation of knowledge to improve their levels of ACAP
and frugal innovation.
Keywords:
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