Mission or margin? Using dynamic capabilities to manage adaptive tensions in social purpose organisations' business model innovation

This study examines how adaptive tensions arising from business model innovation (BMI) are managed in a social purpose organisation (SPO) network. We utilise a case study to illustrate how different types of adaptive tensions; belonging, organising, learning, and performing tensions, present themselves at key stages of BMI (initiation, exploration, and exploitation). We use illustrative examples to show how tensions are managed through dynamic capabilities (sensing, seizing, and transformational). The findings show that that while engaging in BMI can improve the competitiveness of SPOs, the tensions of a dual mission focus in a multi-stakeholder network are complex. Moreover, different dynamic capabilities may mediate the effect of adaptive tensions and thus help SPO networks to be more effective at different stages of BMI and dual mission accomplishment.