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Impact of inclusive innovation on firm performance

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  • 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
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