IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v82y2025ics1544612325008864.html

Impact of inclusive innovation on firm performance

Author

Listed:
  • Li, LinBai
  • Li, BeiWei

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.

Suggested Citation

  • Li, LinBai & Li, BeiWei, 2025. "Impact of inclusive innovation on firm performance," Finance Research Letters, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325008864
    DOI: 10.1016/j.frl.2025.107627
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612325008864
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2025.107627?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Garima Sharma & Anand Kumar Jaiswal, 2018. "Unsustainability of Sustainability: Cognitive Frames and Tensions in Bottom of the Pyramid Projects," Journal of Business Ethics, Springer, vol. 148(2), pages 291-307, March.
    2. Minna Halme & Sara Lindeman & Paula Linna, 2012. "Innovation for Inclusive Business: Intrapreneurial Bricolage in Multinational Corporations," Journal of Management Studies, Wiley Blackwell, vol. 49(4), pages 743-784, June.
    3. Alexandru Cernat & Joseph Sakshaug & Pablo Christmann & Tobias Gummer, 2024. "The Impact of Survey Mode Design and Questionnaire Length on Measurement Quality," Sociological Methods & Research, , vol. 53(4), pages 1873-1904, November.
    4. Li, Xinge & Chang, Zheren & Qi, Jiangyi, 2025. "Foreign investment policy, market entry and corporate ESG performance," International Review of Financial Analysis, Elsevier, vol. 103(C).
    5. Zhou, Jiezheng & Liu, Xuexin & Wang, Zhe, 2025. "Tax neutrality and digital transformation of private enterprises: From the perspective of human capital structure adjustment," International Review of Financial Analysis, Elsevier, vol. 103(C).
    6. Ma, Shengchun & Zhang, Zixuan & Wang, Yaohui, 2025. "An analysis of the path of labor protection in the innovation of small and medium-sized enterprises - A moderated mediation model," International Review of Economics & Finance, Elsevier, vol. 99(C).
    7. Hambel, Christoph & van der Sanden, Floor, 2025. "Reevaluating the carbon premium: Evidence of green outperformance," International Review of Financial Analysis, Elsevier, vol. 102(C).
    8. Han, Jun & Xiao, Chong, 2025. "Role of private placement targets in shaping long-term corporate performance," Finance Research Letters, Elsevier, vol. 79(C).
    9. Dai, Jiapeng & Mehmood, Usman & Nassani, Abdelmohsen A., 2025. "Empowering sustainability through energy efficiency, green innovations, and the sharing economy: Insights from G7 economies," Energy, Elsevier, vol. 318(C).
    10. Huang, Heshu & Lu, Yuchen & Wang, Liukai, 2025. "Board age diversity and digital transformation: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 100(C).
    11. Wang, Xiaoying & Li, Yi & Fu, Chaoqian & Yue, Zhenbang, 2025. "Does CEO competence affect enterprises’ financial performance?," International Review of Economics & Finance, Elsevier, vol. 99(C).
    12. Ming Pu & Pek-Hooi Soh, 2018. "The role of dual embeddedness and organizational learning in subsidiary development," Asia Pacific Journal of Management, Springer, vol. 35(2), pages 373-397, June.
    13. Dai, Jiapeng, 2025. "Is policy pilot a viable path to sustainable development? Attention allocation perspective," International Review of Financial Analysis, Elsevier, vol. 98(C).
    14. Jiapeng Dai & Aisha Azhar, 2024. "Collaborative governance in disaster management and sustainable development," Public Administration & Development, Blackwell Publishing, vol. 44(4), pages 358-380, October.
    15. Ahmed, Neveen & Tanos, Barbara Abou & Farooq, Omar & Bouaddi, Mohammed, 2025. "Economic policy uncertainty and active management: Evidence from SRI funds," Finance Research Letters, Elsevier, vol. 79(C).
    16. Guo, Long & Cai, Can & Yang, Debin & Zhou, Zibu, 2025. "Executive compensation disparity and corporate operational performance," International Review of Economics & Finance, Elsevier, vol. 100(C).
    17. Sayyad, Dr. Munawar & Bhattacharjee, Dr. Kaushik & Pathak, Dr. Rajesh, 2025. "Does good corporate governance reduce cost of mutual fund investments: An emerging market perspective," Finance Research Letters, Elsevier, vol. 79(C).
    18. Yu, Haonan & Tian, Shan, 2025. "Impact of corporate financialization constraints on export activities: Analysis of the moderating effect of economic policy uncertainty," Finance Research Letters, Elsevier, vol. 79(C).
    19. Chen, Hongze & Li, Conggang & Liu, Jiatao & Xu, Rong, 2025. "Navigating digital frontiers: The impact of China's cybersecurity law on corporate digital innovation," International Review of Financial Analysis, Elsevier, vol. 103(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shi, Wenlei & Ying, Limeng & Ma, Guohua & Niu, Yanfang & Lv, Yuanyuan & Xu, Xiaofang, 2025. "Intelligent manufacturing, media attention, and sustainable development performance," International Review of Financial Analysis, Elsevier, vol. 106(C).
    2. Fan, Tao & Chen, Keren, 2025. "Unpacking digital economy effects: performance enhancement through supply chain risk management," Finance Research Letters, Elsevier, vol. 84(C).
    3. Jing, Ruifeng & Xu, Yanmei & Liu, Ruizhi, 2025. "Data element, big data and enterprise innovation: Evidence from data trading platforms and national big data comprehensive pilot zones," International Review of Financial Analysis, Elsevier, vol. 105(C).
    4. Su, Yu, 2025. "The hidden cost of geopolitical risk: Corporate violations in China," International Review of Financial Analysis, Elsevier, vol. 105(C).
    5. Pan, Yuyao & Guo, Xiaochuan, 2025. "Digital technology innovation, entrepreneurship and high-quality corporate development," Finance Research Letters, Elsevier, vol. 82(C).
    6. Gao, Jingzhe & Wei, Haixiao, 2025. "Impact of differentiated green incentive policies on traditional and certified green product markets," International Review of Financial Analysis, Elsevier, vol. 106(C).
    7. Lv, Yahui & Zhang, Siqi & Li, Hanyue & Wang, Shitong, 2025. "Coupling analysis of rural revitalization and talent development in disadvantaged counties in China," Finance Research Letters, Elsevier, vol. 82(C).
    8. Kong, Linghui & Chen, Rongquan & Huang, Xinyu & Wang, Fan, 2025. "Can Industry-Specific Information Disclosure Guidelines Alleviate Corporate ESG Divergence? Evidence from Chinese List Companies," International Review of Financial Analysis, Elsevier, vol. 106(C).
    9. Zheng, Ye & Bao, Xuhan & Zhao, Shijie, 2025. "Renewable energy policy and environmental governance performance," Finance Research Letters, Elsevier, vol. 82(C).
    10. Yuan, Jiezhen & Wang, Yaqi & Han, Wenqi, 2025. "Price of climate risk: Evidence from the value of cash holdings," Finance Research Letters, Elsevier, vol. 83(C).
    11. Zhao, Fang & Merajuddin, Shaheem Sayed & Liu, Fanqi & Xu, Yi & Zhang, Yun, 2025. "Racing toward tourism sustainability: A spatial-temporal analysis," International Review of Financial Analysis, Elsevier, vol. 105(C).
    12. Yuan, Zhihui & Bao, Xianjun, 2025. "Corporate financing constraints and environmental information disclosure hype," International Review of Economics & Finance, Elsevier, vol. 102(C).
    13. Jin, Rui & Li, Yuxuan & Zhao, Mingren, 2025. "How educational finance affects the “generational Chain” of poverty in China," Finance Research Letters, Elsevier, vol. 86(PB).
    14. Shi, Lelai & Lin, Hong & Tan, Bing, 2025. "The impact of the coupling coordination between new-type urbanization and the digital economy on ecological efficiency," International Review of Financial Analysis, Elsevier, vol. 105(C).
    15. Ruanzhou, Yilong & Guo, Rengui, 2025. "New quality productivity and intellectual property protection," Finance Research Letters, Elsevier, vol. 83(C).
    16. Liu, Sihan, 2025. "Digital transformation–productivity nexus: Platform integration and enterprise performance," Finance Research Letters, Elsevier, vol. 81(C).
    17. Xing, Manjiang & Gong, Chi & Moon, Gyu-Hyen & Ge, Xiaohong, 2025. "Digital economy, dual innovation capability and enterprise labor productivity," International Review of Financial Analysis, Elsevier, vol. 101(C).
    18. Bu, Wei & Yan, Zhongyi & Yang, Shuning, 2025. "Digital economy and corporate sustainability: Mediating roles of green innovation and risk-taking," Finance Research Letters, Elsevier, vol. 78(C).
    19. Liu, Yuanyang & Tian, Xuemei & Long, Yang, 2025. "Digital economy and corporate ESG performance: Cost reduction or efficiency improvement?," Finance Research Letters, Elsevier, vol. 77(C).
    20. Zhao, Qiuhan & Wu, Wei & Ge, Yuanqin & Xu, Jing, 2025. "Can intellectual property protection policy enhance enterprise innovation capability? Quasi-natural experimental study," International Review of Financial Analysis, Elsevier, vol. 103(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325008864. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.