Social Innovation : Driving Forces of Social Innovation in MNC

Abstract: Multinational Corporations (MNCs) currently face not only a dynamic business environment and challenging profit target, but also increased expectations from the public to take responsibility for addressing social, economic, and environmental issues. There is a tendency that the leading companies in the global market, especially MNCs, put more effort to the Social Innovation (SI). This study is to investigate what drives the MNCs to be involved in social innovation. In order to find out the reasons, we make use of the literature related to social innovation and social entrepreneurship to develop a framework of the motivation of MNCs towards social innovation. The framework combines three different perspectives (Individualistic Perspective, Organizational Perspective, and Institutional Perspective) to describe the motivation of MNCs. It includes ten main factors: philanthropy, ethics, self-awareness, new business opportunities, interfuntional collaboration, corporate culture, laws and regulations, market demands, strategic collaboration and territorial development. The study is also built on rich data collected through semi-structured interviews together with secondary sources from four MNCs in the different industries: KPMG, Coca-Cola, Porsche, and Philips. However, the empirical evidence indicates a revised framework of motivations of the social innovation in MNCs, including six main factors: self-awareness, new business opportunities, interfuntional collaboration, corporate culture, market demands, and strategic collaboration. Our research made a step into unexplored field of motivation of the MNC being involved in SI and hopefully will go further to investigate the rationale for such involvement.