Pathways to social innovation in Chilean firms: a configurational analysis through the lens of legitimacy theory

Abstract

Social innovation has become an essential strategy for addressing societal challenges and fostering sustainable development, especially in emerging economies that face institutional and resource-related constraints. This study analyzes social innovation through the lens of legitimacy theory, using data from 1,707 firms included in the Tenth National Innovation Survey of Chile, based on the Oslo Manual. Applying fuzzy-set qualitative comparative analysis (fsQCA), the study identifies three pathways (configurations) associated with high social innovation: younger firms with strong human capital and customer engagement; resource-constrained firms collaborating with competitors to overcome financial limitations and achieve social impact; and supplier firms with substantial human capital leveraging government support. Overall, young firms in competitive markets, characterized by lower informality and fewer bureaucratic barriers, exhibit higher social innovation expenditure. Theoretical and practical implications are discussed.