Diana Aqmala, Ph.D., Lecturer, Associate Professor, Secretary of the Learning Development and Curriculum Department, Universitas Dian Nuswantoro, Jl. Nakula I, No. 5-11, Semarang, Central Java, Indonesia 50131, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Roymon Panjaitan, Ph.D. Candidate, Lecturer, Universitas Dian Nuswantoro, Jl. Nakula I, No. 5-11, Semarang, Central Java, Indonesia 50131, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Elia Ardyan, Ph.D., Lecturer, Associate Professor, Head of Management Department, Sekolah Tinggi Ilmu Ekonomi Ciputra Makassar, Kawasan CitraLand City CPI, Jalan Sunset Boulevard, Makassar, South Sulawesi Indonesia 90224, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Febrianur Ibnu Fitroh Sukono Putra, M.M., Lecturer, Assistant Professor, Head of Quality and Service Section at Quality Assurance Department, Universitas Dian Nuswantoro, Jl. Nakula I, No. 5-11, Semarang, Central Java, Indonesia 50131, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract

PURPOSE: This study explores the role of Green Blue Ocean Strategy (GBOS) in promoting frugal innovation by leveraging IoT and AI from an RBV theoretical perspective, targeting creative entrepreneurs in Central Java, Indonesia. METHODOLOGY: A quantitative approach was used, with Structural Equation Modelling (SEM) analyzed via AMOS. Data from 262 creative entrepreneurs were collected through an online closed questionnaire using purposive sampling. FINDINGS: The study reveals that (1) IoT does not significantly impact frugal innovation, (2) AI positively influences frugal innovation, and (3) GBOS effectively mediates the relationship between IoT, AI, and frugal innovation, suggesting that integrating sustainable strategies with technology can lead to more cost-effective and inclusive innovations. IMPLICATIONS for theory and practice: The study extends the RBV framework by integrating the GBOS concept, demonstrating its effectiveness in optimizing digital technology for sustainability-driven innovation. It contributes to the literature on sustainability strategies and the Resource-Based View by introducing a novel theoretical model that links GBOS, IoT, and AI with frugal innovation. Practically, GBOS offers a pathway for creative entrepreneurs to overcome resource constraints and achieve competitive advantages through sustainable practices. ORIGINALITY AND VALUE: This study introduces Green Blue Ocean Strategy (GBOS) as a novel conceptual framework that extends the traditional Blue Ocean Strategy (BOS) by integrating sustainability principles. GBOS addresses both economic and environmental concerns, enabling businesses to achieve cost-effective innovation. Grounded in the Resource-Based View (RBV), this study systematically develops and empirically tests GBOS by linking it with IoT, AI, and frugal innovation. The framework offers a new lens for sustainable competitive advantage in resource-constrained environments.

Keywords: internet of things, artificial intelligence, green blue ocean strategy, frugal innovation, resource-based view, sustainability, sustainable strategy, digital technology, sustainability-driven innovation, sustainable innovation