This research examined the links between organizational purpose and an organization’s capacity to innovate. This inductive study answers the question, “What, if any, are the links between purpose and innovation in organizations?” The empirical setting and sample for this study included CEOs and senior leaders of large publicly traded and private corporations, global and national firms, and high-growth technology firms. Fourteen diverse organizations and 24 individuals were participants in which a grounded theory approach was used to examine the influence purpose has on innovation and the innovation process within organizations. The study proposes a conceptual process model that shows the dimensions that catalyze innovation when organizational purpose is strong. Three dimensions emerged in the data, which provide support for how purpose influences organizational innovation capacity: (a) defines clarity and initiates a strategic compass; (b) enhances organizational confidence, bonds people, teams, and organizations; and (c) enables endurance and builds commitment.
