Frugal geeks: how founder knowledge boosts performance through bricolage and innovation

Abstract

Purpose This study explores the relationship between founder’s knowledge on information and communication technology (ICT) and startup performance through frugal innovation (FI) and entrepreneurial bricolage (EB) in the product/service development strategy by using the lens of the knowledge-based view (KBV). Design/methodology/approach This study adopted a qualitative, multiple-case and contrasting approach. Primary data were collected through semi-structured interviews with founders of four Brazilian startups, complemented by secondary data from official documents, social media and industry report. Data analysis was conducted with a theory-driven coding scheme supported by triangulation of data sources by using Atlas.ti software. Findings The founder’s prior knowledge on ICT influenced the product development strategy through FI and EB, resulting in different performance outcomes. Research limitations/implications Potential limitations include subjective biases from semi-structured interviews, such as reliance on the founders’ perceptions, which may not capture the performance of their start-ups and thus result in incomplete secondary data. Practical implications The contrasting cases allowed for a deeper understanding of the relationships among founders regarding their knowledge on ICT, EB, FI and performance in the technology startup context. Originality/value By relating the concepts of FI with KBV based on the startup founder’s knowledge on ICT, this study found that EB plays an intermediary role between them and FI, which influenced the startup performance. Moreover, this study informs founders and investors about how the founders’ team composition, especially in technology startups, can boost startup performance in restricted environments.

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