Abstract

Keywords

References

Abstract

     The purpose of this research empirically examines the influence of information and communication technologies (ICTs) adoption and frugal innovation on customer satisfaction among small and medium-sized (SMEs) Colombian firms and determine whether the frugal innovation has a mediating role on the relationship between ICT adoption and customer satisfaction. A quantitative approach and cross-sectional design was applied through the Structural Equation Modeling. A simple random sampling technique and a self-administered questionnaire were used to gather data from a sample of 145 business owners in the Department of Bogota, Colombia. The outcomes indicate that ICT adoption has a significant influence on both frugal innovation and customer satisfaction. Furthermore, greater levels of frugal innovation increase customer satisfaction. Moreover, the frugal innovation demonstrated to play a significant partial mediating effect on the relationship between ICT adoption and customer satisfaction.

Introduction

     The 21st century has been defined by rapid technological change, where innovation is at the center of competition in order to meet customers’ needs in a more efficient and sustainable way [1]; furthermore, the COVID-19 outbreak placed companies all over the world -especially SMEs- under ever more pressure to adopt ICT as a survival strategy [2]. The challenge for SMEs in developing countries is greater, as they must do more with even less [3]. In this context, ICT adoption has proved to have a positive impact on innovation in these firms [4]; moreover, ICT as a mean of knowledge management [5] makes possible a better integration between companies and customers, improving frugal innovation capabilities, which help develop affordable and sustainable products with great value for the market [6]

Results and analyses

     To test the research hypotheses, the structural model was analysed by means of bootstrapping through Smart PLS®۳ [۳۲]. The results indicated that there is evidence to obtain the confidence intervals required to evaluate the accuracy of the parameters. The structural model has predictive relevance due to that FI (R2 = 0.246) and CS (R2 = 0.182), both endogenous constructs have an explanatory capacity because the R square values are above and close to 0.20 [40], respectively, so that, the model has quality and therefore, its results are useful in business decision-making. On the other hand, the predictive relevance of the endogenous constructs was evaluated through the blindfolding technique of the Stone-Geisser Q2 test, having obtained Q2 values greater than zero [44].