TRADITIONAL KNOWLEDGE DISCLOSURE AND DIGITAL INNOVATION ACCOUNTABILITY IN EMERGING ECONOMIES

Background: Traditional knowledge has increasingly attracted policy attention within emerging
economies due to its relevance to biodiversity, indigenous innovation, cultural identity, and sustainable livelihoods. Yet, corporate utilisation of traditional knowledge in product development and supply chain sourcing raises accountability concerns, particularly when digital innovation accelerates data extraction, algorithmic commodification, and cross border commercialisation.

Aim: This study examined how traditional knowledge disclosure influences digital innovation accountability among firms in emerging economies, while assessing whether governance mechanisms strengthen transparency and responsible digitalisation of indigenous resources.

Methodology: The study adopted an ex post facto design using balanced panel data from 72 listed non financial firms across Nigeria, Kenya, South Africa, and Tanzania covering 2014 to 2024. Traditional knowledge disclosure was measured using a structured index capturing reporting on community engagement, benefit sharing, intellectual property safeguards, and indigenous consent processes. Digital innovation accountability was operationalised through disclosures on data ethics, algorithmic governance, cybersecurity controls, and innovation risk oversight. Data were analysed using descriptive statistics, correlation analysis, fixed effects regression, and robust regression for sensitivity.

Findings: Traditional knowledge disclosure showed a positive and statistically significant association with digital innovation accountability, indicating that firms reporting community consent and benefit sharing practices are more likely to strengthen ethical digital governance and innovation risk control. Governance quality, proxied by audit committee diligence and board independence, significantly strengthened the relationship, suggesting that responsible reporting on indigenous resources improves when oversight structures are active. However, disclosure quality varied substantially across countries, reflecting uneven regulatory enforcement and heterogeneous stakeholder pressure. Contributions: The study contributes to sustainability reporting and digital accountability literature by extending disclosure research to traditional knowledge governance, a neglected domain in corporate
reporting within emerging economies. It provides evidence that ethical management of indigenous knowledge resources is increasingly interconnected with digital innovation systems and risk governance.

Recommendations
Regulators: Develop traditional knowledge disclosure guidance that integrates indigenous benefit sharing expectations with digital governance requirements.
Firms: Embed indigenous consent, benefit sharing, and knowledge protection into innovation governance frameworks and board oversight.
Researchers: Incorporate qualitative validation, assurance mechanisms, and sectoral analysis to assess whether reported practices reflect substantive accountability.