Impact of inclusive innovation on firm performance

LinBai Li and BeiWei Li

Finance Research Letters, 2025, vol. 82, issue C

Abstract: This study examines the relationship between inclusive innovation and firm performance through the lens of social network theory. Empirical analysis reveals that inclusive innovation positively influences firm performance through three mediating mechanisms, namely, firm-rooted ability, social embeddedness, and value co-creation. This study identifies critical boundary conditions—the uniqueness of base-of-the-pyramid (BOP) groups negatively moderates relationships between inclusive innovation and the three mediating variables, while firms’ social media activities positively moderate relationships between these mediators and performance outcomes. These findings contribute to an understanding of how inclusive innovation translates to enhanced organizational performance, underscoring facilitating mechanisms and contextual contingencies that shape this relationship in contemporary business environments.

Keywords: Inclusive innovation; Firm performance; Firm-rooted ability; Social embeddedness; Value co-creation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325008864

DOI: 10.1016/j.frl.2025.107627

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