Exploring How Purpose-Driven Innova-Tion (PDI) Leads to Sustainable Business Growth in Medium-Sized Enterprises (MSEs): A Qualitative Case Study in Vietnam

The relationship between purpose and innovation has garnered significant attention in business management and strategy. While innovation is widely acknowledged as crucial for sustaining competitive advantage, a clear sense of purpose can enhance business performance (Henderson, 2020). However, understanding how purpose-driven innovation (PDI) influences value creation and overall business performance remains an emerging area with considerable research potential. Previous studies suggest that integrating purpose with innovation can drive sustainable business growth, but there is a notable research gap regarding this relationship. This study investigates the impact of PDI on fostering sustainable business growth, specifically through the execution of PDI projects. Grounded in the theoretical frameworks of Paradox Theory, Organizational Ambidexterity, and Dynamic Capabilities, this research aims to address the following questions: How does PDI facilitate organizational ambidexterity? What role do leadership, organizational culture, and strategic alignment with purpose play in achieving PDI? Initial findings suggest that top management commitment and organizational learning are crucial factors in balancing exploration and exploitation within innovation processes.