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The purpose of this study is to analyze the relationships between Entrepreneurial Orientation, Organizational Learning Capability, Service Innovation and Organizational Performance. To this end, it was sought to analyze the mediating role of organizational learning capability and service innovation within entrepreneurial orientation and organizational performance relationship in knowledge-intensive organizations.

The sample consisted of 159 architecture and urbanism companies from Santa Catarina, Brazil. The study opted to use managers as key informants since they are the ones that have general information about the organization and are a valuable source for assessing the different variables of the organization. For data analysis, the PLS-PM algorithm (Partial Least Squares Path Modeling) was used.

Results showed that entrepreneurial orientation is a strong driver of service innovation and organizational performance. Organizational learning capability acts as a facilitator of innovation and has a positive influence on organizational performance. Another theoretical contribution of this study to organizational learning capability is the confirmation of its mediation in service innovation and organizational performance. Management needs to make its organization more proactive and creative, continually promoting new ideas. Architecture and urbanism organizations should pay more attention to maintaining and promoting entrepreneurial orientation permanently. The trend toward both proactivity and risk-taking can be an inherent advantage of these knowledge-intensive business services.

Few studies have explored the mediating role of organizational learning capability and service innovations in organizational performance. In particular, the combined effects of entrepreneurial orientation and organizational learning capability have been neglected by the knowledge-intensive organizations literature. The study is justified by providing a more complete view of the relationship between entrepreneurial orientation and the performance of knowledge-intensive organizations, highlighting the role of organizational learning capability and performance in service innovation.

This study aims to analyze the organizational learning capability relationship with operational performance and frugal innovation across Brazilian companies.

Quantitative research was performed using collected data from 154 firms, which were analyzed using structural equation modeling.

The results showed that organizational learning capability is an antecedent of frugal innovation. The results also predict a better operational performance for companies that actively innovate cost-effectively. Another result was the positive relationship between the organizational learning capability and the operational performance. The authors found that the indirect and positive relationship between organizational learning capability, frugal innovation and operational performance was confirmed, reinforcing the literature.

A theoretical implication of this study can be seen in the establishment of the relationship between organizational learning capability, frugal innovation and operational performance since no studies linking these variables together were found. Therefore, the organizational learning capability and the frugal innovation can be considered facilitators of the operational performance.

Managers should consider organizational learning and frugal innovation when thinking about firms’ operational performance. In this way, to facilitate and achieve higher performance, it was found that organizational learning capability and frugal innovation have a great deal of impact on operational performance.

At frugal innovation, the needs of citizens are prioritized. It is a great instrument to face crises since it consists of developing simpler and cheaper products and services quickly, making them accessible to a larger group of consumers.

This study seeks to understand whether Brazilian companies are moving toward a more frugal innovation strategy. The study opens the possibility of showing whether the organizational learning capability has also impacted this change.

This study aimed to analyze the role of organizational learning capability and entrepreneurial orientation on frugal innovation and, consequently, operational performance within the Brazilian textile industry.

The sample consisted of 257 valid questionnaires from the textile industry in the state of Santa Catarina, Brazil. Data were analyzed using structural equation modeling using SmartPLS software.

The results showed that organizational learning capability is a strong driver of the operational performance when mediated by frugal innovation. Evidence also showed that relationships between entrepreneurial orientation, organizational learning capability, frugal innovation and operational performance are significant once the direct effect has more power than the indirect effect. Results elucidated different outcomes that are not in accordance with previously seen studies. Moreover, the latter shines a light on a possible interference caused by the COVID-19 pandemic.

The study clarifies the relationship that entrepreneurial orientation and organizational learning capability unleash in frugal innovation and operational performance. It also shows a new situation when looking at the relationship between entrepreneurial orientation, organizational learning capability and operational performance.