Digitally Enabled Collective Frugal Entrepreneurship: A Configurational Approach to Women Entrepreneurship and Inclusive Growth

Abstract

This study investigates how women’s frugal entrepreneurial capabilities translate into entrepreneurial orientation within resource-constrained environments, focusing on the mediating role of fintech self-efficacy and the moderating influence of social capital. Drawing on social network theory and the resource-based view, the study proposes and empirically tests a moderated mediation model using data from 664 women entrepreneurs in Pakistan. Structural Equation Modeling (SEM) results confirm that fintech self-efficacy significantly mediates the relationship between frugal innovation capabilities and entrepreneurial orientation. Women with high confidence in using digital financial tools are more likely to transform their frugal capabilities into proactive, risk-taking, and autonomous entrepreneurial behavior. Furthermore, the results demonstrate that social capital, comprising structural, relational, and cognitive dimensions, moderates the strength of this indirect relationship. Higher social capital amplifies the effect of fintech self-efficacy by enhancing access to peer support, knowledge exchange, and shared entrepreneurial norms. These findings highlight the importance of both psychological and relational enablers in fostering digital entrepreneurship among women in informal and resource-limited contexts. The study contributes to digital entrepreneurship, gender, and development literature by offering a nuanced understanding of how fintech and social dynamics interact to empower women’s entrepreneurial trajectories. Policy and platform design implications are also discussed.

Keywords: Frugal innovation, Fintech, social capital, women empowerment.