The influence of national contexts on hybrid tensions, and how to manage them through business model innovation

Hybrid organisations that aim to achieve economic and social objectives encounter well-defined hybrid tensions at the firm level. However, the hybrid organising literature has largely neglected empirical evidence from low- and middle-income countries (LMICs) where hybrid organisations operate in macroeconomically volatile national contexts marred by poor infrastructure, policy gaps, and skill shortages. Here, we conduct a systematic literature review, analysing 73 academic studies that discuss how business models achieve multiple goals through energy access in LMICs. Although internal tensions exist, their impact is exacerbated in LMICs by macro-level tensions. We identify five types of tensions affecting LMICs and examine how Business Model Innovation (BMI) can help manage them. Specifically, a complex BMI that focuses on the value network is needed, complemented by innovations in the value proposition and capture. Finally, our study focuses on an important yet under-researched context: LMICs, particularly in Africa, where SDG gaps are largest, offering insights into how to tackle grand challenges.