Innovation for impact: Business innovation for inclusive growth

The research uses a literature review and case studies to build a framework that describes factors leading to successful innovation for impact (I4I): innovation that enhances corporate performance and creates significant, lasting social impact. Five organizational elements influence I4I: strategic alignment, responsible purpose, institutional drivers, stakeholder engagement, and business model management. Six institutional drivers influence I4I: values, leadership, culture, strategy, structure, and policies. Firms can achieve lasting social impact by targeting systemic factors using the ecology for inclusive growth. Stakeholder engagement increases opportunities for co-creation and enables business-model innovation through knowledge gathering and creation. Strengthening and aligning organizational elements increases the likelihood of I4I, improving corporate performance and enhancing business landscape. Institutionalizing I4I creates an engine for business-model innovation, a powerful source of competitive advantage.