Abstract
Drawing upon the dynamic capabilities view, this paper investigates the process and the micro-foundations of social innovation undertaken by Bangladeshi social purpose organisations (SPOs) during and after Covid-19 pandemic. The paper is based on findings from 25 Bangladeshi SPOs including traditional non-profit organisations, non-profit organisations with income generating activities and social enterprises. The findings demonstrate that after sensing the external and internal socio-economic challenges, the studied SPOs had innovated new ideas, products, services, and/or projects to cope with internal financial challenges, and to protect their beneficiaries during and after the pandemic. To execute these social innovations, the SPOs had undergone multiple transformations by reorganising and reconfiguring resources and capabilities. These transformations had even stimulated changes in the overall operational model in some cases. The studied SPOs deployed mechanisms to sense the external and internal triggers that had driven these transformations, and accordingly they adopted various seizing mechanisms to make the transformation happen.