POST-PANDEMIC INNOVATION PRACTICES IN MICRO, SMALL, AND MEDIUM-SIZED FIRMS IN THE STATE OF GUANAJUATO

Abstract

The pandemic caused by the spread of the SARS-CoV-2 virus has compelled many companies to prioritize innovation strategies in order to survive. Consequently, this cross-sectional empirical study employed a quantitative approach to assess the level of innovation achieved through frugal innovation practices by micro, small, and medium-sized enterprises (MSMEs) in the post-pandemic era in the state of Guanajuato, Mexico. A survey-type questionnaire was randomly administered to a sample of 58 companies. Stepwise discriminant analysis, utilizing Wilks' Lambda method, was applied to analyze the data. The results demonstrate that, during the crisis, the most influential variables in explaining the level of innovation are the significant reduction in the price of products or services and their durability, both regarded as frugal innovation practices. Consequently, decision-makers should establish frugal ecosystems that enable cost reduction while emphasizing the functionality and performance of their products or services.

Keywords

• innovation
• frugal innovation practices
• cost reduction
• msmes
• discriminant analysis