Fostering Inclusive Innovation in Developing Economies: An Integrative Framework for Multinational Enterprises

Abstract

A relatively new term emerging in the last decade, inclusive innovation commonly refers to any innovation for poor and otherwise excluded members of society. Developing economies are particularly promising targets for this kind of innovation due to their institutional voids and vast numbers of people living below the poverty line. This paper introduces an integrative framework highlighting a range of factors relevant for multinationals seeking to foster inclusive innovation in developing economies. Because innovation processes in developing economies inherently face constraints, our suggested approach mitigates and transforms these challenges into advantages that assist both multinationals and the local societies. We argue that this approach fits the context of developing countries better than traditional methods applied in developed countries; as such multinationals operating in these markets should embrace it within their strategies. By building on 2 contemporary research into the strategy, entrepreneurship and supply chain literature while extending beyond the conventional understanding of innovation processes, our study develops an integrative framework of inclusive innovation for multinationals operating in developing economies. On a practical level, our study can help managers understand inclusive innovation and their respective operational strategies, thus enabling effective innovative processes in developing countries.

Gender diversity, inclusive innovation and firm performance

“…However, much more research is required into the intra‐organizational dimensions or individual factors that might impact inclusive innovation and the way managers interpret the specific characteristics of underdeveloped markets (Halme et al, 2012; Mortazavi et al, 2019). This study advances the literature offering insights regarding certain organizational capabilities and strategies that can be used to promote inclusive innovation (Pansera & Owen, 2018; Peerally et al, 2019).…”

“…Inclusive innovation and social entrepreneurship Conceptual, theoretical and review studies Foster and Heeks (2013), George et al (2012), Mortazavi et al (2019), and Zaefarian et al (2015) Qualitative methodology, case studies Agrawal and Sahasranamam (2016), Anderson and Markides (2007), Halme et al (2012), Pansera and Owen (2018), Peerally et al (2019), Swaans et al (2014), and Woodson et al (2019) Gender, social behavior…”

International Inclusive Innovation of Entrepreneurial Firms

“…The third stream of studies investigates the outcome of inclusive innovation with a special focus on firms' organizational capability building (e.g., Confraria & Godinho, 2015;Foster & Heeks, 2013;Niosi & Reid, 2007) and regards inclusive innovation as an incubator through which firms expand their organizational capabilities. Nevertheless, few studies have proceeded to investigate more details of the inclusive innovation process of multinational enterprises (Heeks et al, 2013;Mortazavi et al, 2019;Woodson et al, 2019). In particular, it remains unclear how emerging entrepreneurial firms develop more advanced capabilities to accomplish inclusive innovation.…”