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Examining the drivers and boundary conditions of social innovation: Evidence from MNE subsidiaries in a developing economy

Yes / 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. / The full-text of this article will be released for public view at the end of the twelve month publisher embargo.

Identiferoai:union.ndltd.org:BRADFORD/oai:bradscholars.brad.ac.uk:10454/19813
Date08 February 2024
CreatorsNkrumah, M., Owusu-Yirenkyi, Diana, Nyuur, Richard B., Donbesuur, F., Essuman, D.
Source SetsBradford Scholars
LanguageEnglish
Detected LanguageEnglish
TypeArticle, Accepted manuscript
RightsUnspecified
Relationhttps://link.springer.com/journal/11575

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