A process model for reconciling purpose and profit in the development of multistakeholder partnerships: case BalticSeaH2—a regional hydrogen valley

Grand challenges, such as energy transition, demand long-term coordination across sectors through multi-stakeholder partnerships (MSPs) that must navigate persistent tensions between purpose and profit. Drawing on a longitudinal case study of BalticSeaH2 hydrogen valley, we use process analysis to trace how purpose- and profit-driven actions interact across phases. We uncover an embedded hybridity in actions by distinguishing between purpose-driven transformative actions and profit-driven shaping actions. While the former promote purpose and open collaboration, the latter pursue firm-specific strategic interests and selective alignment for collaboration. Our findings show that alternating sequences of these actions create partial reconciliations that support the emergence of governance arrangements and enable “small wins.” We contribute to research on grand challenges, robust action and MSPs by theorizing a process model that reveals the embedded hybridity between purpose- and profit-driven actions in the reconciliation process and the sequential emergence of governance arrangements aligned with the robust action strategies.