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How to stay on the road? A business model perspective on mission drift in social purpose organizations

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  • Klein, Sascha
  • Schneider, Sabrina
  • Spieth, Patrick

Abstract

Hybrid organizations like social purpose organizations (SPOs) frequently innovate their business models (BM) due to environmental constraints aiming to create social value while striving for economic viability. Competing demands may cause the SPO to drift to one mission, jeopardizing hybridity and the mission. However, research on mission drift is still in its infancy and lacks empirical evidence. We rely on a multiple-case study approach, using the BM as a unit of analysis to identify key choices and consequences concerning possible mission drift. Our findings show a complex set of choices and consequences that reinforce social value creation, facilitate and prevent mission drift in SPOs. We outline the role of stakeholders and transparency as key to prevent mission drift and to enhance legitimacy, challenging research on stakeholders’ constraining nature. We argue for investigating business model innovations’ consequences on mission drift and contribute to the literature on SPOs and business model innovation by providing evidence of cycles of choices and consequences, risking the SPO to disregard either the social or economic mission.

Suggested Citation

  • Klein, Sascha & Schneider, Sabrina & Spieth, Patrick, 2021. "How to stay on the road? A business model perspective on mission drift in social purpose organizations," Journal of Business Research, Elsevier, vol. 125(C), pages 658-671.
  • Handle: RePEc:eee:jbrese:v:125:y:2021:i:c:p:658-671
    DOI: 10.1016/j.jbusres.2020.01.053
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    4. Essen, Anna & Frishammar, Johan & Cenamor, Javier, 2023. "Entering non-platformized sectors: The Co-evolution of legitimacy debates and platform business models in digital health care," Technovation, Elsevier, vol. 121(C).
    5. Cossey, Jozef & Dedeurwaerdere, Tom & Périlleux, Anaïs, 2023. "Inherently unstable? Scaling, mission drift, and the comparative performance of community-based platforms in the sharing economy," Ecological Economics, Elsevier, vol. 212(C).
    6. Elena Freisinger & Sven Heidenreich & Christian Landau & Patrick Spieth, 2021. "Business Model Innovation Through the Lens of Time: An Empirical Study of Performance Implications Across Venture Life Cycles," Schmalenbach Journal of Business Research, Springer, vol. 73(3), pages 339-380, December.
    7. Lucas, David S. & Park, U. David, 2023. "The nature and origins of social venture mission: An exploratory study of political ideology and moral foundations," Journal of Business Venturing, Elsevier, vol. 38(2).
    8. Jay Sheppard & Maral Mahdad, 2021. "Unpacking Hybrid Organizing in a Born Green Entrepreneurial Company," Sustainability, MDPI, vol. 13(20), pages 1-30, October.
    9. Tae Jun Bae & James O. Fiet, 2021. "Imprinting Perspective on the Sustainability of Commitments to Competing Institutional Logics of Social Enterprises," Sustainability, MDPI, vol. 13(4), pages 1-27, February.
    10. Fortezza, Fulvio & Figueiredo, Bernardo & Scaraboto, Daiane & Del Chiappa, Giacomo, 2022. "Managing multiple logics to facilitate consumer transformation," Journal of Business Research, Elsevier, vol. 144(C), pages 377-390.
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