Industrial Management Journal

Industrial Management Journal

Doing More with Less: A Meta-Analysis of How Frugal Innovation Drives Circular Economy

Document Type : Original Research Article

Authors
1 MSc, Department of Management, University of Qom, Qom, Iran.
2 Assistant Prof., Department of Technology Management, Islamic Azad University, Qom Branch, Qom, Iran.
3 Ph.D., Department of Computer Science, University of Maryland, Baltimore, USA.
10.22059/imj.2026.413756.1008315
Abstract
Objective: Among the different types of innovation that firms can pursue, frugal innovation has attracted practitioners in the sustainability domain. Frugal innovation can improve the Circular Economy by driving resource efficiency, cutting waste, and promoting the reuse and recycling of materials. However, the existing research has not drawn consistent conclusions about the relationship between FI and CE. Hence, in this study, an effort has been made to aggregate the quantitative results obtained through a systematic review and meta-analysis method to determine the overall impact of FI on the CE.
Methodology: The paradigm of this research is positivist, its reasoning method is deductive, and its approach is quantitative. The study population consisted of English-language articles published between 1979 and 2025 in the Scopus and WoS databases. Using the PRISMA method, out of 876 studies on the impact of FI on the CE, a final number of 6 studies were selected based on the inclusion and exclusion criteria defined by the researchers, and their data were included in the final analysis.
Results: The meta-analysis conducted using the Comprehensive Meta-Analysis software (CMA3) showed that, overall, FI has a significant positive impact on CE. Also, the studies were heterogeneous, and the effect size's value fell within the medium range (Based on Cohen’s criterion). Additionally, Egger’s linear regression method rejected the hypothesis of publication bias, and the results of the fail-safe N method indicated the robustness of the study’s findings.
Conclusion: This meta-analysis demonstrates that frugal innovation is a powerful engine for transition to a circular economy and provides a pragmatic pathway where sustainability intersects with economic viability and strategic innovation. By embracing the “more with less” paradigm, businesses can unlock circularity as a source of resilience, efficiency, and long-term value creation.
Keywords
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