Fostering inclusive innovation in developing economies: An integrative framework for MNEs

Abstract

Inclusive innovation, a relatively new term emerging in the last decade, 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 the vast numbers of people living below the poverty line. This chapter introduces an integrative framework highlighting a range of factors relevant to 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; as such multinationals operating in these markets should embrace it within their strategies. By building on contemporary research into this strategy, entrepreneurship and supply chain, while also 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.