International Journal For Multidisciplinary Research

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Adoption of Frugal Innovation Practices and Business Survival in Food and Beverage SMEs in Nigeria

Author(s) Dr. Mercy Finelady Ajienka, AJIENKA,
Country Nigeria
Abstract SMEs are central to the economy of Nigeria as they contribute a significant portion of employment and GDP but experience high mortality rates because of the lack of resources, untrustworthy infrastructure, unstable economic environments, and stiff competition. Such problems are especially acute in the industry of food and beverages. Frugal innovation (FI) offers an appealing survival resource to resource-constrained firms by creating low cost, simplified solutions that offer essential functionality with constraints. This paper looks at how adoption of frugal innovation practices is related to business survival of SMEs in the food and beverage industry in Rivers State, Nigeria. The survey design used was cross-sectional where structured questionnaires were distributed among 312 owners and managers who were sampled using stratified random sampling of an estimated population of registered SMEs in the sector. Descriptive statistics and multiple linear regression were both used to analyse data in SPSS. Findings indicated moderate or high use of FI practices, and process frugality (operational simplification and local substitution) exhibited the most positive effect on the survival indicators (0.412, p = 0.001), then product frugality (0.358, p = 0.001), and business model frugality (0.296, p = 0.001). Taken together, these dimensions accounted 42.8 percent of perceived business survival. The results confirm that frugal innovation is a strategic tool of critical utility when it comes to improving resilience, profitability, and longevity of the challenging business environment in Nigeria. Policymakers should support FI through targeted training and infrastructure interventions, and SME managers should prioritise process and product frugality.
Keywords frugal innovation, business survival, resource constraints, process frugality, product frugality
Field Business Administration
Published In Volume 8, Issue 1, January-February 2026
Published On 2026-02-12
DOI https://doi.org/10.36948/ijfmr.2026.v08i01.67120
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