Corporate purpose and systemic innovation: intra-organisational dynamics to address societal challenges

Recent literature increasingly suggests that embracing corporate purposeprovides companies with a competitive edge in driving systemicinnovations, which are crucial for addressing complex societalchallenges in our interconnected world. However, there is a dearth ofempirical research exploring the organisational mechanisms throughwhich corporate purpose facilitates systemic innovation. Our studyseeks to address this gap by qualitatively analysing internal documents,reports, and interviews with managers and founders of four Italianpurpose-driven companies. Our findings reveal three key intra-organisational dynamics enabled by corporate purpose: (1) strategicvision and alignment, (2) engagement, motivation, and creativity, and(3) trust and relational contracts – all of which facilitate theimplementation of systemic innovation. This research contributes toboth the grand challenges and organisational theory literature byoffering a deeper understanding of how corporate purpose can beeffectively leveraged to drive positive change. Additionally, it serves tostimulate new avenues of inquiry for management scholars and offerspractical insights for companies striving to address the contemporarychallenges of our society.