This study examines the impact of frugal innovation (FI) on new product development performance (NPDP) within the small electrical household appliances (SEHA) sector. Additionally, it explores the moderating roles of Industry 4.0 (I4.0) technologies and technological turbulence (TT) in linking FI to NPDP. Grounded in the Resource-Based View, Human-Organization-Technology framework, and Schumpeterian innovation theory, this research, from a paradigmatic perspective, falls under post-positivism. In terms of approach and reasoning, it is quantitative-deductive, and from the perspective of method and nature, it is descriptive of the survey type. Data were collected from 111 senior managers in the Iranian SEHA industry. The responses were analyzed using PLS-SEM via Smart-PLS software. Results confirm that FI significantly and positively influences NPDP. Furthermore, the study finds that I4.0 technologies strengthen this relationship by enabling precise engineering, rapid prototyping, and cost-effective production, thus enhancing the benefits of FI under varying technological conditions. Technological turbulence also moderates the impact of I4.0, amplifying the positive effects on NPDP by fostering organizational agility and responsiveness to rapid change. The importance-performance map analysis highlights I4.0 adoption as a critical area for managerial focus to sustain competitive advantage. These findings advance the theoretical understanding of innovation management by clarifying the interplay between frugal innovation, Industry 4.0 technologies, and technological turbulence, enriching the understanding of their joint effects on NPDP. Practically, the results guide managers in resource allocation and strategic adoption of digital technologies to enhance innovation outcomes amid technological turbulence, thereby supporting sustained competitive advantage in resource-constrained and dynamic market environments.