Organizational hybridity and mission drift in innovation partnerships

Abstract

Innovation partnerships are a popular model for organizing publicly supported innovation projects. However, partners often have different timelines and planning horizons, understanding of purpose and concepts of value. This hybridity poses organizational challenges pertaining to trust, goal setting, learning and coordination, which may lead to “mission drift,” i.e. compromising or displacement of intended goals. Despite the risk mission drift poses, its underlying dynamics are not sufficiently understood, and the means to mitigate it are unclear. This study aims to address these questions. Through eight broad and one deep case study of innovation partnerships funded by Innovation Fund Denmark (IFD), the authors investigate how partnerships reconcile multiple expectations and interests within the IFD framework and how this might lead to mission drift. The authors draw upon existing theories on the organizational challenges of innovation partnerships and supplement these with new empirically based propositions on the risk of mission drift. This study identifies a core tension between partnership complexity and the degree of formalization. Depending on how these dimensions are combined in relation to particular goals, the partnership mission is likely to become narrower or more unpredictable than intended. Thus, the authors theorize the significance of partnership composition and requisite formalization for a given innovation purpose. This study contributes to the theoretical understanding of mission drift in innovation partnerships by opening the organizational black box of partnerships. The findings underscore the value of explorative case studies for specifying the contingencies of organizational design and governance mechanisms for different innovation goals.