Abstract: Frugal innovation, as a new innovation paradigm under resource-constrained situation, can avoid excessive consumption of production resources and ecological environment. It promotes firms’ value innovation and social sustainable development, facilitating the realization of the “carbon neutral and carbon peak” target. Although the practice and study of frugal innovation have been actively carried out, the formation mechanism of frugal innovation need to be further explored. Based on the survey data of 224 questionnaires from manufacturing firms in the Yangtze River Delta region, this study aims to determine the impact of organizational green culture on frugal innovation and thus proposes a moderated mediation model to explore the mediating effect of green supply chain learning (green supplier learning and green customer learning) and the moderating effects of green organizational identity in the above process. The results show that organizational green culture has a significant positive impact on frugal innovation. Green supplier learning and green customer learning mediate the relationship between organizational green culture and frugal innovation. Green organizational identity positively moderates the mediating effect of green supplier learning and green customer learning on the relationship between organizational green culture and frugal innovation. This study enriches and deepens the application of organizational culture theory, organizational learning theory and organizational identity theory in firms carrying out frugal innovation, and provides an unprecedented insight into the formation mechanism of frugal innovation.

Key words: frugal innovation, organizational green culture, green supplier learning, green customer learning, green organizational identity