Exploring the Applicability and Effect of a Purpose-driven Business Model: A Case Study of Greenspeak

Abstract

In this paper, the researchers examine the applicability and effect of a purpose-driven business model in the Danish B2C wireless telecommunications industry in the case of Greenspeak. Greenspeak is a Danish purpose-driven telecommunication provider that donates most of its profits to charity. The research consists of an inductive approach by conducting several semi-structured interviews with the case company and other appropriate sources. The empirical findings were derived with the use of thematic coding to determine the essential factors that have influenced Greenspeak’s usage of Purpose. The key findings suggest that the shift in market needs, the dynamics of the industry, the circumstances of the founders, as well as the structure and strategy of Greenspeak have contributed to Greenspeak’s ability to leverage purpose and retain a competitive advantage.
In the discussion, the interdependence of the influential factors was determined, resulting in a model that illustrates the flow of impact between the different categories. Furthermore, the discussion tapped into the challenges that arise from Greenspeak’s hybrid business model design, and what can be constituted as a success for purpose-driven businesses. Finally, the results of the study indicate that for a purpose-driven business to be successful in the given industry, it requires extraordinary managerial capabilities, which Greenspeak has not fully obtained. Additionally, the intention-behavior gap proved to be a significant challenge for Greenspeak since ethical consumers rarely walk their talk. Consequently, the recommendations focus on the price-oriented competition, which forces Greenspeak to invest more in marketing to increase their presence in the market; hence, they will have to compromise on their principles.