Engaging Paradoxical Tensions in Cross-Sectoral Collaborative Business Model Development for Sustainability: A Case Study in the Urban Energy Transition

This article presents an in-depth case study on cross-sectoral collaborative business model development (CBMD) that is pressured to produce systemic sustainability transformations. Drawing on paradox theory, we identify three paradoxical tensions—value, creativity, and consumer tensions. While engaging these tensions offers synergy and creativity potential, engagement barriers limit stakeholders’ ability to harness this potential. Stakeholder networks can access synergy potential by engaging meso-level tensions through increased trust and collaboration. Yet, macro-level engagement barriers posed by governments and society lead to a reliance on incumbent patterns and reduce creativity. This research advocates for reconsidering CBMD processes and regulatory frameworks to enable engagement with these paradoxical tensions. Our implications offer insights for industries transitioning from centralized models to more individualized, decentralized approaches. The findings underscore the necessity of promoting reciprocal interactions and engagement across different levels and the early integration and strategic orchestration of stakeholders to cultivate trust and align objectives.