The sustainability of multinational enterprises' pandemic‐induced social innovation approaches

Abstract

The COVID-19 pandemic has prompted an unprecedented reaction in several multinational enterprises (MNEs). These MNEs have adopted social innovation approaches to meet the needs of vulnerable societal groups by swiftly innovating their business models; drastically changing their product offerings and customer bases; and producing COVID-19 necessities. These approaches have alleviated some key pandemic-induced social challenges related to health and sanitation. In this perspective article, we use secondary sources of information to present and exemplify the various types of MNE pandemic-induced social innovation approaches. We open the discussion on whether these approaches are transitory in nature or whether they can and should be sustained in the long-term, given the right incentives to these MNEs. We conclude by redefining MNEs' social innovation and by suggesting avenues for scholars, practitioners, policymakers, and educators to support this momentum in MNEs which we argue, if sustainable, can be fruitful for addressing other pressing grand challenges such as climate change, food security, poverty, and inequality.

Tackling exigent grand challenges through corporate social innovation: Evidence from the COVID‐19 pandemic

“…There are two streams of literature investigating how this exigent GC can be tackled through innovation: one stream focuses on the involvement of individuals/crowds, including virtual hackathons (Bacq et al, 2020; Bertello et al, 2021; Yokoi et al, 2021) and extreme crowdsourcing campaigns (Kokshagina, 2021), and the other stream focuses on the role of CSI (Battaglia et al, 2021; Crupi et al, 2022; Peerally et al, 2022). Technically speaking, the former approach can be applied anywhere with an internet connection.…”

“…As these studies reveal, however, it is more popular in developed economies such as the U.S. (Bacq et al, 2020) and EU countries (Bertello et al, 2021; Kokshagina, 2021; Yokoi et al, 2021). The latter can be found in both developed (Battaglia et al, 2021) and developing economies (Crupi et al, 2022; Peerally et al, 2022). These differences might be attributed to the weak institutional environments prevalent in developing economies (Peerally et al, 2022; Saka‐Helmhout et al, 2021).…”

“…The latter can be found in both developed (Battaglia et al, 2021) and developing economies (Crupi et al, 2022; Peerally et al, 2022). These differences might be attributed to the weak institutional environments prevalent in developing economies (Peerally et al, 2022; Saka‐Helmhout et al, 2021).…”

“…Employing data collected from seven companies in China, Crupi et al (2022) find that firms adopt social bricolage and agile reaction strategies to facilitate CSI activities intended to address the pandemic. Peerally et al (2022) observe that multinational enterprises (MNEs) adopt CSI approaches to meet the needs of vulnerable and at-risk populations.…”

Apropiación sistémica de la innovación social corporativa en organizaciones de mercados emergentes: una propuesta para la generación de valor compartido

“…En los mercados emergentes existen retos de importante envergadura que se pueden abordar con IS: la ausencia del Estado para resolver las necesidades sociales más urgentes (Restrepo-Medina et al, 2021) y la incertidumbre generada por la pandemia, que pone en entredicho la verdadera capacidad de las empresas para mantenerse en el tiempo (Peerally et al, 2022).…”