A Moderation Analysis of Environmental Turbulence and Organizational Leadership between the Relationship of Intellectual Capital and Frugal Innovation in SMEs in Pakistan

  • Jalil Ahmed Thebo , Dr. Amir Hussain Shar


This study has examined the direct effect of intellectual capital on the frugal innovation in SMEs in Pakistan with the two moderating variables environmental turbulence and organizational leadership. Study has explained the role of organizational leadership between the intellectual capital and the frugal innovation as well as also the role of environmental turbulence between the same two variables of study. Methodology: study is descriptive and quantitative. Data is taken from the SMEs of Pakistan and according to the Abdullah, (2020) the total SMEs in Pakistan is 3.3 million on the basis of new figures. The population is large so the Roscoe has suggested selecting the sample from large population up to the five hundred. Selected sample size is 400 SMEs. Analysis: data analyzed trough the very latest method of analysis, AMOS. For moderation analysis Preacher & Hayes data analysis techniques is used. Results: lastly, the results of study according to the suggested tests shows that intellectual capital has  a positive & significant effect on the frugal innovation and environmental turbulence and organizational leadership moderates a positive as well as significant relationship between the frugal innovation and intellectual capital.