Stakeholder Integration, Inclusive Innovation, and Social Value Creation: Moderating Effect of Social Capital From Community Leaders

Abstract

This study investigates how stakeholder integration enhances social value creation through inclusive innovation and the moderating role of social capital from community leaders in this relationship. Drawing on stakeholder theory and inclusive innovation literature, we develop and empirically test a conceptual model using survey data from 313 firms in Vietnam. Our findings reveal that stakeholder integration significantly enhances inclusive innovation capability, which in turn leads to increased social value creation. Further, we find that the strength of this mediated relationship depends on the degree of social capital firms possess through their ties with community leaders. In contexts where community leaders enjoy high trust and influence, the translation of inclusive innovation into social value is significantly amplified. By testing this model, our study contributes to the literature on inclusive innovation, stakeholder engagement, and social value creation. We offer new insights into how firms operating in resource-constrained or institutionally weak environments can co-create meaningful societal outcomes. The study highlights the importance of embedding community voices in innovation processes and leveraging relational capital to scale inclusive innovations effectively.