Responsible Innovation: The Impact of Major Industrial Disasters and Gender in a Global South Context

Abstract

Responsible innovation (RI) dynamics remain underexplored in Global South contexts, which have a high prevalence of micro‐ and small enterprises and are vulnerable to the devastating effects of industrial disasters. Only a few studies examine RI within such settings, where it is arguably needed most. Drawing on imprinting theory, we examine whether major industrial disasters reshape founders propensity to adopt firm‐level RI practices and whether this effect depends on founders' gender. Using data from 388 founders of micro‐ and small enterprises in Bangladesh, we compare firms founded before versus after the 2013 Rana Plaza factory collapse. Generalized linear model (GLM) analyses show that firms founded post‐disaster report higher levels of RI practices adoption, but this imprint is heterogeneous. In pre‐disaster conditions, female‐founded firms report lower RI adoption than male‐founded firms; while in post‐disaster conditions, female‐founded firms increase RI adoption substantially, closing much of the pre‐disaster gender gap, whereas male‐founded firms show little change. Post hoc analyses suggest this shift is driven by increased inclusivity and reflexivity dimensions of RI. In sum, we extend RI research to the most prevalent organizational form in the Global South and advance imprinting and event‐oriented theorizing on how founder traits shape innovation responses to exogenous shocks. Managerial Summary Major industrial disasters reshape what communities, customers, and partners expect from firms on ethics, safety, and transparency. Using evidence from Bangladesh, where the 2013 Rana Plaza collapse claimed over 1100 lives, we show that firms founded after the disaster adopted RI practices at higher levels, a shift driven primarily by female‐founded firms. This increase is associated with two RI dimensions: greater inclusivity and reflexivity among female founders, reflected in broader stakeholder engagement and more critical reflection on innovation decisions. These findings offer concrete guidance for managers and policymakers seeking to foster RI in Global South contexts. As an ongoing priority, and even in pre‐disaster contexts, policymakers should establish multi‐stakeholder dialogue forums bringing together civil society, NGOs, and local government to expand female founders' stakeholder focus beyond relatively narrow in‐group networks. Managers could also create structured opportunities for female founders to reflect critically on their innovation processes and engage with diverse stakeholder perspectives, building firm‐level inclusivity and reflexivity. After a disaster, policymakers and industry leaders should act swiftly, as this is when founders are most receptive to change, particularly female founders. Promptly deploying clear guidance, financial incentives, and RI‐focused training can drive long‐term shifts toward more responsible innovation practices.