Uncovering the multiple functions of organizational purpose

Organizational purpose is pervasive in contemporary management discourse, yet its functional role remains undertheorized and weakly operationalized. Using an abductive, Gioia-inspired analysis of 44 semi-structured interviews, we develop an empirically grounded, mid-range taxonomy that addresses the following research question: What distinct functions does organizational purpose serve for organizations and their stakeholders? We identify five distinct functions: lens (sensemaking and envisioning), scale (principled prioritization and trade-offs), compass (decision and behavioral filter), mirror (reflection, learning, and accountability), and glue (integrative coordination and alignment). For each function, we specify core mechanisms, discuss boundary conditions, and illustrative observable indicators. Building on these insights, we propose concrete managerial artifacts as potential levers to support each function, derived from our theorizing rather than empirically observed practices. Due to limited empirical evidence, we do not establish systematic sequencing or causal linkages among the functions. This limitation motivates a future agenda to test the interrelationships and implementation pathways suggested by our framework. This study contributes by: (1) advancing a functional taxonomy of organizational purpose with core mechanisms, boundary conditions, and illustrative indicators; (2) articulating a question-driven research agenda for investigating interrelationships and temporal sequencing among purpose functions; (3) offering actionable managerial artifacts to enable operationalization and practical application.