To be sustainable, social purpose organisations (SPOs) are innovating their traditional business models to that of more collaborative network-based models, extending the potential for superior service and increased value through social and economic value co-creation (VCC). SPOs operate within unique and complex contexts, where much remains on how context impacts VCC and its influence on business models. Furthermore, there is a paucity of studies examining how to embed value co-creation processes in network configurations. This paper advances theory by exploring how SPOs innovate their business models in order to engage in value co-creation through a value-network. By analysing three SPO value networks, we provide new knowledge on the antecedents and mechanisms of value co-creation which span the micro, meso, and macro levels of context. We also illustrate the factors which underpin SPOs ability to embed VCC within their business models through operating in a value network.
- Business Model Innovation, Value co-creation, Special Purpose Organisations, Value networks, Context.