Abstract
This paper examines the role played by strategic agility and gender diversity in enabling the creation of
value for grand challenges (VCGCs) by small and medium-sized enterprises originating from emerging
markets (ESMEs). ESMEs face significant challenges due to the dynamic environments in which they
operate and the limited support they receive from formal institutions. In such contexts, strategic agility
enables ESMEs to drive VCGCs through responsible collaborative innovation. We further argue that
gender diversity is an important boundary condition that influences the effect of strategic agility on
VCGCs via responsible collaborative innovation. Utilizing 228 survey responses from ESMEs
originating from the United Arab Emirates (UAE), our findings shed light on the vital role played by
strategic agility in enhancing ESMEs’ VCGCs. Specifically, our findings indicate that responsible
collaborative innovation acts as an important mediating mechanism between strategic agility and
VCGCs. In addition, gender diversity emerges as an important moderating factor in that, in the presence
of more heterogeneous senior management teams, the effect of strategic agility on VCGCs through the
mediating mechanism of responsible collaborative innovation is higher. These findings contribute to
the literature on dynamic capabilities, upper echelons, and grand challenges by providing important
insights into the mechanisms and boundary conditions of VCGCs in the context of emerging market
firms.