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

Muthu De Silva*, Omar Al-Tabbaa, Zaheer Khan

*Corresponding author for this work

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

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.

Original languageEnglish
JournalJournal of Business Research
Early online date30 Dec 2019
DOIs
Publication statusE-pub ahead of print - 30 Dec 2019

Keywords

  • Business Model Innovation
  • Co-creation
  • Dynamic capabilities
  • Economic value
  • Hybrid Organizations
  • International Social Purpose Organizations
  • Microfoundations
  • Social value

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