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<p>Small and medium-sized enterprises (SMEs) face significant challenges in achieving long-term sustainability due to resource constraints and market volatility. While Digital Platforms, Ambidextrous Innovation, and Frugal Innovation have individually been recognized as important drivers of firm performance, limited research examines their synergistic effects on SME sustainability, particularly in emerging economy contexts. This study addresses this gap by proposing and testing an integrated framework that examines how Digital Platforms and Ambidextrous Innovation enable SME sustainability through Frugal Innovation. Employing a novel multi-analytical approach combining Partial Least Squares Structural Equation Modeling (PLS-SEM), Necessary Condition Analysis (NCA), and Artificial Neural Networks (ANN), the study analyzes survey data from 115 Indonesian snack food SMEs. The PLS-SEM results confirm that Digital Platforms (β = 0.534, <i>p</i> &lt; 0.001), Ambidextrous Innovation (β = 0.307, <i>p</i> &lt; 0.001), and Frugal Innovation (β = 0.290, <i>p</i> = 0.001) significantly enhance sustainability, with Frugal Innovation serving as a critical mediator. The NCA reveals Ambidextrous Innovation as the most essential bottleneck condition (d = 0.433), while ANN sensitivity analysis identifies all three constructs as highly influential predictors. The integrated framework provides complementary insights classifying Ambidextrous Innovation as a core foundational capability, Digital Platforms as the primary enabling driver, and Frugal Innovation as a critical mediating mechanism. The findings advance sustainability literature by demonstrating the hierarchical and non-compensatory nature of these capabilities, while offering SME managers actionable guidance for sequenced capability development. The study contributes to cleaner production research by revealing how resource-constrained firms can transform sustainability aspirations into achievable outcomes through deliberate investments in ambidexterity, digital infrastructure, and Frugal Innovation principles.</p>

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The Role of Digital Platforms and Ambidextrous Innovation in Supporting SME Sustainability Through Frugal Innovation: An Integrated PLS-SEM-NCA-ANN Framework

  • 期刊论文

  • 发表日期：

    2026年7月8日

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  • Rangga Primadasa,
  • Alvin Herfizan,
  • Vikha Indira Asri,
  • Ilyas Masudin

摘要

Small and medium-sized enterprises (SMEs) face significant challenges in achieving long-term sustainability due to resource constraints and market volatility. While Digital Platforms, Ambidextrous Innovation, and Frugal Innovation have individually been recognized as important drivers of firm performance, limited research examines their synergistic effects on SME sustainability, particularly in emerging economy contexts. This study addresses this gap by proposing and testing an integrated framework that examines how Digital Platforms and Ambidextrous Innovation enable SME sustainability through Frugal Innovation. Employing a novel multi-analytical approach combining Partial Least Squares Structural Equation Modeling (PLS-SEM), Necessary Condition Analysis (NCA), and Artificial Neural Networks (ANN), the study analyzes survey data from 115 Indonesian snack food SMEs. The PLS-SEM results confirm that Digital Platforms (β = 0.534, p < 0.001), Ambidextrous Innovation (β = 0.307, p < 0.001), and Frugal Innovation (β = 0.290, p = 0.001) significantly enhance sustainability, with Frugal Innovation serving as a critical mediator. The NCA reveals Ambidextrous Innovation as the most essential bottleneck condition (d = 0.433), while ANN sensitivity analysis identifies all three constructs as highly influential predictors. The integrated framework provides complementary insights classifying Ambidextrous Innovation as a core foundational capability, Digital Platforms as the primary enabling driver, and Frugal Innovation as a critical mediating mechanism. The findings advance sustainability literature by demonstrating the hierarchical and non-compensatory nature of these capabilities, while offering SME managers actionable guidance for sequenced capability development. The study contributes to cleaner production research by revealing how resource-constrained firms can transform sustainability aspirations into achievable outcomes through deliberate investments in ambidexterity, digital infrastructure, and Frugal Innovation principles.