Social Value Creation in Inter‐Organizational Collaborations in the Not‐For‐Profit Sector – Give and Take from a Dyadic Perspective

Organizations in the not-for-profit (NFP) sector are increasingly collaborating with other organizations to mutually raise overall joint value created. However, literature on interorganizational collaborations in the NFP sector lacks a clear, empirically proven understanding about which factors drive such joint value creation and whether and how these factors and their effects differ for the two parties involved. Based on the relational view and an analysis of 121 partnership dyads, we identify that some factors governing the successful creation of joint value differ for the two partners while others are relevant to both parties. Those latter factors, in turn, differ in their effects on the respective outcome. This article is protected by copyright. All rights reserved.

[1]  Mark C. Suchman,et al.  Legitimacy in Organizational Institutionalism , 2009 .

[2]  T. Das,et al.  Interpartner Legitimacy in the Alliance Development Process* , 2007 .

[3]  Xiao-ping Chen,et al.  Achieving Cooperation in Multiparty Alliances: a Social Dilemma Approach to Partnership Management , 2003 .

[4]  E. Autio,et al.  SOCIAL CAPITAL, KNOWLEDGE ACQUISITION, AND KNOWLEDGE EXPLOITATION IN YOUNG TECHNOLOGY-BASED FIRMS , 2001 .

[5]  T. Entwistle,et al.  Does Cross-Sectoral Partnership Deliver? An Empirical Exploration of Public Service Effectiveness, Efficiency, and Equity , 2010 .

[6]  Shaker A. Zahra,et al.  On the Frontiers: The Implications of Social Entrepreneurship for International Entrepreneurship , 2013 .

[7]  Thomas H. Brush,et al.  Comparing the resource-based and relational views: Knowledge transfer and spillover in vertical alliances , 2008 .

[8]  Sergio G. Lazzarini,et al.  Horizontal and Vertical Relationships in Developing Economies: Implications for SMEs' Access to Global Markets , 2008 .

[9]  M. Bodur,et al.  Social alliances: Business and social enterprise collaboration for social transformation , 2012 .

[10]  M. Seitanidi,et al.  Collaborative Value Creation , 2012 .

[11]  Kurt Matzler,et al.  Antecedents of M&A success: The role of strategic complementarity, cultural fit, and degree and speed of integration , 2014 .

[12]  Dovev Lavie.  The Competitive Advantage of Interconnected Firms: An Extension of the Resource-Based View , 2006 .

[13]  H. Stevenson,et al.  Social and Commercial Entrepreneurship: Same, Different, or Both? , 2006 .

[14]  D. Jamali,et al.  Uneasy Alliances: Lessons Learned from Partnerships Between Businesses and NGOs in the context of CSR , 2009 .

[15]  Ida E. Berger,et al.  Social Alliances: Company/Nonprofit Collaboration , 1999 .

[16]  John W. Selsky,et al.  Platforms for Cross-Sector Social Partnerships: Prospective Sensemaking Devices for Social Benefit , 2010 .

[17]  J. H. Davis,et al.  The effect of the performance appraisal system on trust for management: A field quasi-experiment. , 1999 .

[18]  Marko Sarstedt,et al.  Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research , 2014 .

[19]  J. Hair.  Multivariate data analysis : a global perspective , 2010 .

[20]  Yadong Luo,et al.  Structuring interorganizational cooperation: the role of economic integration in strategic alliances , 2008 .

[21]  O. Williamson.  Transaction-Cost Economics: The Governance of Contractual Relations , 1979, The Journal of Law and Economics.

[22]  M. Porter,et al.  Creating Shared Value , 2019 .

[23]  Legitimation Work Within a Cross-Sector Social Partnership , 2015 .

[24]  Indre Maurer,et al.  The Effects and Multilayerdness of Inter-Organizational and Institutional Trust in Key Partnerships , 2013 .

[25]  Paul Tracey,et al.  The Dialectic of Social Exchange: Theorizing Corporate—Social Enterprise Collaboration , 2009 .

[26]  Jérôme Barthélemy,et al.  Complexity of Outsourcing Contracts and Ex Post Transaction Costs: An Empirical Investigation , 2006 .

[27]  James E. Austin,et al.  Strategic Collaboration Between Nonprofits and Businesses , 2000 .

[28]  Michael D. Pfarrer,et al.  A Communicative Framework of Value in Cross-Sector Partnerships , 2012 .

[29]  Caroline Glendinning,et al.  Conceptualising successful partnerships. , 2004, Health & social care in the community.

[30]  O. Williamson,et al.  The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting. , 1986, American Political Science Review.

[31]  A. Zaheer,et al.  Does Trust Matter? Exploring the Effectsof Interorganizational and Interpersonaltrust on Performance , 1998 .

[32]  Keith G. Provan,et al.  Do networks really work? A framework for evaluating public-sector organizational networks , 1999 .

[33]  Robert C. Ellickson,et al.  Order Without Law: How Neighbors Settle Disputes , 1991 .

[34]  K. Provan,et al.  Interorganizational Networks at the Network Level: A Review of the Empirical Literature on Whole Networks , 2007 .

[35]  J. H. Davis,et al.  An Integrative Model Of Organizational Trust , 1995 .

[36]  S. Lazzarini,et al.  HORIZONTAL AND VERTICAL RELATIONSHIPS IN DEVELOPING ECONOMIES: IMPLICATIONS FOR SMEs’ ACCESS TO GLOBAL MARKETS , 2008 .

[37]  Peter A. Dacin,et al.  Collective Social Entrepreneurship: Collaboratively Shaping Social Good , 2012 .

[38]  J. H. Dyer,et al.  Creating and managing a high‐performance knowledge‐sharing network: the Toyota case , 2000 .

[39]  Michal Almog-Bar,et al.  Revisiting Collaborations Between Nonprofits and Businesses , 2013 .

[40]  Zhen Xiong (George) Chen,et al.  Why Do I Feel Valued and Why Do I Contribute? A Relational Approach to Employee's Organization‐Based Self‐Esteem and Job Performance , 2013 .

[41]  Barbara Parker,et al.  Cross-Sector Partnerships to Address Social Issues: Challenges to Theory and Practice , 2005 .

[42]  J. Augusto Felício,et al.  Social value and organizational performance in non-profit social organizations: Social entrepreneurship, leadership, and socioeconomic context effects , 2013 .

[43]  C. Oliver,et al.  The legitimacy of strategic alliances: an institutional perspective , 2007 .

[44]  Deepak Somaya,et al.  Alumni Effects and Relational Advantage: The Impact on Outsourcing When a Buyer Hires Employees from a Supplier's Competitors , 2013 .

[45]  P. Rundall.  The perils of partnership--an NGO perspective. , 2000, Addiction.

[46]  B. Quélin,et al.  Creating and Capturing Value in Public-Private Ties: A Private Actor's Perspective , 2011 .

[47]  Charles Leadbeater,et al.  The Rise of the Social Entrepreneur , 1997 .

[48]  J. H. Dyer.  Effective interim collaboration: how firms minimize transaction costs and maximise transaction value , 1997 .

[49]  M. Elliott,et al.  Health and social care in the community. , 1989, Elderly care.

[50]  Boris Bauke,et al.  An Empirical Test of the Relational View in the Context of Corporate Venture Capital , 2016 .

[51]  Jan B. Heide,et al.  Transaction Cost Analysis: Past, Present, and Future Applications , 1997 .

[52]  Chris Huxham,et al.  The Oxford Handbook of Inter-Organizational Relations , 2010 .

[53]  Rüdiger Hahn,et al.  Resources and Governance in 'Base of the Pyramid' - Partnerships: Assessing Collaborations between Businesses and Non-Business Actors , 2014 .

[54]  David L. Deephouse,et al.  Does Isomorphism Legitimate? , 1996 .

[55]  Renate E. Meyer,et al.  The SAGE Handbook of Organizational Institutionalism , 2017 .

[56]  Jeffrey H. Dyer.  EFFECTIVE INTERFIRM COLLABORATION : HOW FIRMS MINIMIZE TRANSACTION COSTS AND MAXIMIZE TRANSACTION VALUE r , 1998 .

[57]  Markku V. J. Maula,et al.  Prerequisites for the creation of social capital and subsequent knowledge acquisition in corporate venture capital , 2003 .

[58]  Jeffrey H. Dyer,et al.  The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage , 1998 .

[59]  Jean-Philippe Vergne.  Toward a New Measure of Organizational Legitimacy: Method, Validation, and Illustration , 2010 .

[60]  Anne Parmigiani,et al.  Clearing a Path Through the Forest: A Meta-Review of Interorganizational Relationships , 2011 .

[61]  Markus Göbel,et al.  You Scratch My Back and I Scratch Yours: Investigating Inter-Partner Legitimacy in Relationships Between Social Enterprises and Their Key Partners , 2019 .

[62]  A. Carsrud,et al.  Social Ventures from a Resource–Based Perspective: An Exploratory Study Assessing Global Ashoka Fellows , 2010 .

[63]  Todd R. Zenger,et al.  Dealing with the Paradox of Embeddedness: The Role of Contracts and Trust in Facilitating Movement Out of Committed Relationships , 2006, Organ. Sci..

[64]  Dovev Lavie,et al.  Organizational Differences, Relational Mechanisms, and Alliance Performance , 2012 .

[65]  M. Zimmerman,et al.  Beyond Survival: Achieving New Venture Growth by Building Legitimacy , 2002 .

[66]  Dima Jamali,et al.  Strategic Partnerships, Social Capital and Innovation: Accounting for Social Alliance Innovation , 2011 .

[67]  D. North.  Institutions, Institutional Change and Economic Performance: Economic performance , 1990 .

[68]  Margaret A. White,et al.  Learning and Knowledge Transfer in Strategic Alliances: A Social Exchange View , 2005 .

[69]  Margaret A. Peteraf.  The cornerstones of competitive advantage: A resource‐based view , 1993 .

[70]  K. Prashant,et al.  Managing Strategic Alliances: What Do We Know Now, and Where Do We Go From Here? , 2009 .

[71]  C. Hill.  National Institutional Structures, Transaction Cost Economizing and Competitive Advantage: The Case of Japan , 1995 .

[72]  Jed Emerson,et al.  Impact Investing: Transforming How We Make Money while Making a Difference , 2011, Innovations: Technology, Governance, Globalization.

[73]  W. Scott,et al.  A Multidimensional Model of Organizational Legitimacy: Hospital Survival in Changing Institutional Environments , 1998 .

[74]  T. Das,et al.  Managing risks in strategic alliances , 1999 .

[75]  Daniel Arenas,et al.  Value Creation in Cross-Sector Collaborations: The Roles of Experience and Alignment , 2015 .

[76]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[77]  J. Barney,et al.  Trustworthiness as a Source of Competitive Advantage , 1994 .

[78]  Donald O. Neubaum,et al.  A Typology of Social Entrepreneurs: Motives, search Processes and Ethical Challenges , 2009 .

[79]  B. Uzzi,et al.  Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness , 1997 .

[80]  Jed Emerson.  The Blended Value Proposition: Integrating Social and Financial Returns , 2003 .

[81]  J. Delhey,et al.  A Happy Nation? Opportunities and Challenges of Using Subjective Indicators in Policymaking , 2013 .

[82]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[83]  T. Das,et al.  A Resource-Based Theory of Strategic Alliances , 2000 .

[84]  Mark C. Suchman.  Managing Legitimacy: Strategic and Institutional Approaches , 1995 .

[85]  Barbara Weber,et al.  Exploring the Antecedents of Social Liabilities in CVC Triads — A Dynamic Social Network Perspective , 2009 .

[86]  M.May Seitanidi,et al.  Implementing CSR Through Partnerships: Understanding the Selection, Design and Institutionalisation of Nonprofit-Business Partnerships , 2009 .

[87]  W. Powell,et al.  The iron cage revisited institutional isomorphism and collective rationality in organizational fields , 1983 .

[88]  Y. Tsarenko,et al.  Dependence and effectiveness in the nonprofit-corporate alliance: The mediating effect of objectives achievement , 2014 .

[89]  John Elkington,et al.  Partnerships from cannibals with forks: The triple bottom line of 21st‐century business , 1998 .

[90]  G. Bascle.  Controlling for endogeneity with instrumental variables in strategic management research , 2008 .

[91]  C. Ansell,et al.  A Preliminary Theory of Interorganizational Network Effectiveness : A Comparison Study of Four Community Mental Health Systems , 2013 .

[92]  P. Kale.  Managing strategic alliances: what do we know now, and where do we go from here? , 2010 .

[93]  D. De Clercq,et al.  The creation of relational rents in venture capitalist-entrepreneur dyads , 2001 .