Influence of Challenges Associated with Frugal Business Modelling on the Agribusiness Sustainability: the Moderating Effect of Environmental Munificence

Abstract

This study investigates the relationship between the challenges associated with frugal business modeling and the sustainability of agribusiness firms, as well as the moderating effect of environmental munificence. The study employed a cross-sectional survey design and targeted managers and operational staff working in agribusinesses affiliated with the National Association of Seed Traders of Ghana (NASTAG). The col-lected data underwent a series of statistical analyses, including the data analysis method used for this re-search is the Structural Equation Model Partial Least Square (SEM- PLS) with the help of the SmartPLS 4.0 application. These analyses were performed on the questionnaires, which contained variables assessing the challenges related to frugal business modelling, variables assessing the determinants of agribusiness sustainability as well variables assessing environmental munificence. The findings indicate that the chal-lenges associated with frugal business modelling, such as resource constraints, information gaps, and insti-tutional barriers, have a statistically significant negative influence on the level of sustainability exhibited by agribusiness firms. The moderating effect of environmental munificence only partially mitigates this nega-tive relationship. The challenges inherent in frugal business modelling pose a significant threat to the sus-tainability of agribusiness operations, even in resource-abundant environments. Agribusiness firms and policymakers must develop comprehensive strategies to address these challenges, focusing on resource leveraging, knowledge sharing, collaborative partnerships, and supportive regulatory frameworks. The study highlights the complex and nuanced relationship between frugal innovation, sustainable business practices, and the role of contextual factors in the agricultural sector. The findings underscore the need for a holistic approach to fostering sustainable agribusiness development, with both organisational and policy-level interventions.