External boundary permeability and inclusive innovation: the moderating role of dual governance

Inclusive innovation offers opportunities to improve the well-being of the bottom of the pyramid (BOP). However, our understanding of effective strategies to promote inclusive innovation remains limited. According to organisational information processing theory (OIPT), this study investigates the impact of external boundary permeability on firm inclusive innovation and examines the moderating role of dual governance. Using survey data from 217 Chinese manufacturing firms, we test our hypotheses. The results show that external boundary permeability has a positive impact on both symbolic and substantive inclusive innovation. Moreover, the joint effect of contractual and relational governance strengthens the positive impact of external boundary permeability on both forms of inclusive innovation. This study enriches the literature on inter-organisational collaboration and inclusive innovation by offering new insights into the role of external boundary permeability in facilitating inclusive innovation.