Business model innovation by international social purpose organizations: The role of dynamic capabilities

This paper examines the role played by dynamic capabilities and business model innovation in international social purpose organizations (ISPOs)(1) operating across developing and developed countries. Utilizing a qualitative multiple case study methodology, we identify a set of dynamic capabilities deployed and leveraged by these organizations for business model innovation in order to achieve their dual mission of social and economic value creation. The findings highlight unique micro-foundational capabilities of the founders that are vitally important to perceive social challenges as opportunities for ISPOs to sense socially and economically intertwined prospects. We discuss the specific organizational-level capabilities-at both the production and selling sites-that are developed and utilized by ISPOs to seize opportunities by combining competing social and economic logics. In relation to transformation, ISPOs develop ecosystem-wide production- and market-related capabilities-in both developing and developed countries-that enable them to scale-up their dual mission business model through co-creation.

Automated summary

This study examines the role of dynamic capabilities and business model innovation in international social purpose organizations (ISPOs), highlighting the importance of founder's unique micro-foundational capabilities in perceiving social challenges as opportunities. The study also discusses the specific organizational-level capabilities utilized by ISPOs to seize opportunities by combining competing social and economic logics, as well as the ecosystem-wide production- and market-related capabilities developed by ISPOs for scaling up their dual mission business model.