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Purpose: Organizations grappling with resource scarcity are compelled to engage in frugal innovation and adopt bricolage behaviors to advance their social value-creation objectives within resource-constrained contexts. This study investigates the role of frugal innovation as a mediator in mitigating resource scarcity and enhancing social value creation among 131 small and medium-sized social enterprises in Pakistan. Design/Methodology/Approach: Employing a survey questionnaire through purposive (judgmental) sampling, yielding 87.3% response rate, data was analyzed using SPSS23 and SMART PLS3. Findings: Results demonstrate that resource constraints positively influence bricolage behavior. Moreover, both resource constraints and bricolage behavior positively correlate with frugal innovation, which subsequently enhances social value creation. Specifically, the relationship between resource constraints and frugal innovation is significantly mediated by bricolage behavior. Furthermore, the impact of resource constraints and bricolage behavior on social value creation is significantly mediated through frugal innovation. Importantly, resource constraints positively contribute to social value creation via the serial mediation of bricolage behavior and frugal innovation. Implications/Originality/Value: This study offers valuable insights for practitioners and researchers seeking to understand strategies through which social enterprises can flourish in resource-limited environments. The abstract should demonstrate the contribution of the research that has rarely/never been done before.
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