A relatively new term emerging in the last decade, inclusive innovation commonly refers to any innovation for poor and otherwise excluded members of society. Developing economies are particularly promising targets for this kind of innovation due to their institutional voids and vast numbers of people living below the poverty line. This paper introduces an integrative framework highlighting a range of factors relevant for multinationals seeking to foster inclusive innovation in developing economies. Because innovation processes in developing economies inherently face constraints, our suggested approach mitigates and transforms these challenges into advantages that assist both multinationals and the local societies. We argue that this approach fits the context of developing countries better than traditional methods applied in developed countries; as such multinationals operating in these markets should embrace it within their strategies. By building on 2 contemporary research into the strategy, entrepreneurship and supply chain literature while extending beyond the conventional understanding of innovation processes, our study develops an integrative framework of inclusive innovation for multinationals operating in developing economies. On a practical level, our study can help managers understand inclusive innovation and their respective operational strategies, thus enabling effective innovative processes in developing countries.
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