Can frugal innovations trigger corporate innovation? The dockless bike-sharing services experience in China

Abstract

In emerging economies, dockless bike-sharing service (DBS) offers a convenient and affordable means of transportation for urban dwellers to resolve the “first/last mile” problem. This study theorizes and empirically documents that such a frugal innovation in sustainable urban infrastructure plays a pivotal role in enhancing corporate innovation by improving workplace accessibility and stimulating green awareness. Moreover, the relation between DBS introductions and corporate innovation is positively moderated by the level of organizational frugal awareness and corporate R&D capacity. We further show the positive real effects of frugal innovation on employee responsibility, corporate ESG ratings, as well as managerial sentiment on digital transformation and corporate governance. Overall, our findings emphasize that DBS not only addresses urban mobility gaps but also fosters an innovative mindset and practices within urban businesses.