This article presents an in-depth case study on cross-sectoral collaborative business model development (CBMD), specifically within the context of the urban energy transition, which is pressured to produce systemic sustainability transformations.

Drawing on paradox theory, the authors identify three paradoxical tensions that arise during CBMD:

Value tension: The struggle to simultaneously optimize for economic and environmental value.

Creativity tension: The challenge of balancing innovative ideas with the practical constraints of the collaborative process.

Consumer tension: The difficulty in aligning stakeholders' goals with the needs and acceptance of end-users (consumers).

The findings show that while engaging with these tensions offers potential for synergy and creativity, engagement barriers at different levels limit the stakeholders' ability to harness this potential. Specifically, meso-level tensions can be engaged through increased trust and collaboration among the network partners to access synergy. However, macro-level barriers (like unfavorable government regulations or societal inertia) lead to a reliance on incumbent patterns and actively reduce creativity.

The research advocates for reconsidering CBMD processes and regulatory frameworks to enable productive engagement with these paradoxical tensions. The findings underscore the necessity of early integration and strategic orchestration of stakeholders to cultivate trust and align objectives across the network, ultimately facilitating systemic transitions.

The full article is available open access: here.