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Examining the drivers and boundary conditions of social innovation: Evidence from MNE subsidiaries in a developing economy
Nkrumah, M. Owusu-Yirenkyi, Diana Nyuur, Richard B. Donbesuur, F. Essuman, D.
Nkrumah, M.
Owusu-Yirenkyi, Diana
Nyuur, Richard B.
Donbesuur, F.
Essuman, D.
Publication Date
2024-06
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© The Author(s) 2024. Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/ licenses/by/4.0/.
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openAccess
Accepted for publication
2024-01-21
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Abstract
Although social innovation can help multinational enterprise (MNE) subsidiaries create social
value for developing countries, they often encounter significant challenges in successfully
implementing social innovation projects. This research applies the knowledge-based
perspective to propose and test a theoretical framework to explain why MNE subsidiaries
differ in their ability to pursue social innovation successfully in a developing country. The
framework contends that MNEs’ relationship learning contributes to social innovation
variability under varying levels of subsidiary autonomy and mode of entry. Analysis of
primary data collected from 207 subsidiaries of MNEs operating in Ghana shows that
relationship learning has a positive relationship with social innovation. Further analysis
reveals that subsidiary autonomy enhances the positive association between relationship
learning and social innovation, and that this moderating effect is stronger for subsidiaries
with equity entry mode as opposed to non-equity entry mode. These insights advance the
limited understanding of the antecedents of MNEs’ social innovation in developing countries
and offer guidance on how MNE subsidiaries can successfully pursue social innovation
interventions in a developing country.
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Published version
Citation
Nkrumah M, Owusu-Yirenkyi D, Nyuur RB et al (2024) Examining the drivers and boundary conditions of social innovation: Evidence from MNE subsidiaries in a developing economy. Management International Review. 64(3): 397-417.
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Article