Veranstaltungsprogramm der VHB Jahrestagung

The concept of Purpose has rapidly gained prominence in organizational and management literature. Purpose is currently considered one of the most influential concepts in the business world, promising to enable the transformative power of organizations. This systematic literature review evaluates 152 studies from 2005 to 2023 on the Purpose approach in for-profit businesses. Despite its presumed transformative potential, there is a research gap concerning its inherent challenges and possible negative consequences. This study examines the positive and, particularly, negative implications of the Purpose approach and investigates how organizational challenges influence the outcome. We introduce a framework delineating the complex relationship between applying a Purpose concept and the effects at individual, organizational, and societal levels. Our framework highlights three key challenges influencing the outcome: Purpose Clarity, Purpose Operationalization, and Purpose Credibility. Hence, the study augments the current understanding of Purpose-driven organizing by relating organizational challenges to the ambivalent implications of the Purpose approach. Further, we enrich the academic discourse by postulating the inherent ambiguity in managing the key organizational challenges. Thus, we assist practitioners in navigating potential pitfalls and preventing an unreflected Purpose hype.

In this article, we are proposing a new concept called ‘shared impact’, which reflects the joint achievements of actors working towards the goal of creating social and/or ecological value in highly complex, interdependent contexts. We contribute to institutional theory, particularly to the decoupling discourse, by differentiating the construct ‘ends’ and distinguishing between individual and shared impacts. Moreover, we build the bridge between the decoupling theory and the empirical analysis of ends. We critically discuss impact measurement in highly complex contexts and suggest holistic, triangulated methods for shared impact assessment. Our shared impact concept is also relevant for managers and policymakers aiming to address complex socio-economic issues in fields such as Corporate Social Responsibility and Sustainability.