Inclusive businesses that combine profit making with social impact are claimed to hold the potential for poverty alleviation while also creating new entrepreneurial and innovation opportunities. Current research, however, offers little insight on the processes through which for-profit business organizations introduce social innovations that can profitably create social impact. To understand how social innovations emerge and become sustained in business organizations, we studied a telecom firm in Kenya that successfully extended financial services across the country through a number of mobile (...) banking innovations. Our qualitative analysis revealed the strong role of being embedded in local networks and structures for initiating and implementing social innovations. Strong embeddedness enhanced the pragmatic and ethical imperative for internalizing social issues, but also provided access to diverse resources for implementing and legitimizing social innovations. However, hybridization processes that emphasized social issues introduced organizational tensions by increasing goal diversity and requiring adapting organizational processes and structures. The case shows how developing a mission-driven identity enabled the sustenance of social innovations by providing a meta-narrative that bridged goal diversities and rationalized organizational change. (shrink)

Refugee crises are one of the grand challenges of the 21st century. Despite the theoretical importance attached to value created for beneficiaries in the partnership literature, research tends to focus on internal processes and value created for partners and partnerships, leading to widespread calls to further specify the value created by partnerships for beneficiaries. Applying an analytical framework from the value creation and social impact literatures, we report on a study of multiple social partnerships of a nongovernmental organization in the (...) refugee issue field. Our results demonstrate that frames of refugees held by partners and in partnerships’ implementation contexts shape the value creation activities undertaken for beneficiaries, and determine whether value is created and what types of value. The dual contribution of this article comprises a rare empirical study of value creation activities for beneficiaries (here, refugees) and theorization of how and when implementation context affects value creation by partnerships. (shrink)

This paper explores the relationship between business experience in cross-sector partnerships and the co-creation of what we refer to as ‘dynamic capabilities for stakeholder orientation,’ consisting of the four dimensions of sensing, interacting with, learning from and changing based on stakeholders. We argue that the co-creation of dynamic capabilities for stakeholder orientation is crucial for CSPs to create societal impact, as stakeholder-oriented organizations are more suited to deal with “wicked problems,” i.e., problems that are large, messy, and complex. By means (...) of a grounded theory approach of inductive research, we collected and interpreted data on four global agri-food companies which have heterogeneous experience in participating in CSPs. The results of this paper highlight that only companies’ capability of interacting with stakeholders continually increases, while their capabilities of sensing, learning from, and changing based on stakeholders first increase and then decrease as companies gain more experience in CSP participation. To a large extent, this can be attributed to the development of corporate strategies on sustainability after a few years of CSP participation, which entails a shift from a reactive to a proactive attitude towards sustainability issues and which may decrease the need or motivation for stakeholder orientation. These findings open up important issues for discussion and for future research on the impact of CSPs in a context of wicked problems. (shrink)

Entrepreneurship is increasingly considered to be integral to development; however, social and cultural norms impact on the extent to which women in developing countries engage with, and accrue the benefits of, entrepreneurial activity. Using data collected from 49 members of a rural social enterprise in North India, we examine the relationships between social entrepreneurship, empowerment and social change. Innovative business processes that facilitated women’s economic activity and at the same time complied with local social and cultural norms that constrain their (...) agency contributed to changing the social order itself. We frame emancipatory social entrepreneurship as processes that empower women and contribute to changing the social order in which women are embedded. (shrink)

This article discusses how cross-sector partnerships (CSPs) for sustainability manage the paradoxical tension between stakeholder inclusiveness and administrative efficiency. Drawing on qualitative data from a case study of a CSP focused on urban sustainability, we show how the inclusiveness–efficiency paradox unfolded throughout the studied collaboration. We discuss how the paradox reemerged in a different guise within each phase of the partnership and how three practices of paradox management helped actors to cope with the tension: “customized inviting” (during the formation phase), (...) “sequential including” (during the preparation phase), and “tailored instructing” (during the implementation phase). On the basis of these findings, we argue that (a) the paradox reoccurred throughout the phases of the CSP because the three paradox management practices accentuated boundaries, thereby helping to resolve the paradox temporarily while at the same time creating grounds for the paradox to resurface, and (b) that the three paradox management practices can be theorized as a special type of boundary work that “plays up” relevant differences between actor groups and thereby ensures collaboration. (shrink)

Prior research flags the inherent incompatibilities between for-profit and nonprofit partners and cautions that clashing value creation logics and conflicting identities can stall social innovation in cross sector partnerships. Process narratives of successful versus unsuccessful cross sector partnerships paint a more optimistic picture, whereby the frequency, intensity, breadth, and depth of interactions may afford frame alignment despite partners' divergent value creation approaches. However, little is known about how cross sector partners come to recognize and reconcile their divergent value creation frames (...) in order to co-construct social value. Using longitudinal narratives of four dyads, we show that partners initially contrast their sector-embedded diagnostic frames and then work together to deliberately develop partnership-specific prognostic frames. We extend the literature on framing by developing a four-stage grounded model of frame negotiation, elasticity, plasticity, and fusion which unpacks the relational process of value creation in cross sector partnerships. Our qualitative analyses further show how partners orchestrate multilevel coordination that helps scaffold and calibrate this relational process of frame fusion. (shrink)

This article examines the factors that influence the propensity of corporations to engage with NGOs. Drawing from resource dependency theory and related theories of social networks and the resource-based view of the firm, the authors develop a series of hypotheses that draw from this conceptual foundation to predict a range of factors that influence firms to collaborate with NGOs. These factors include the level of commitment of the firm to CSR, the strategic fit between the firm’s and the NGO’s resources, (...) the level of trust the firm has in NGOs, the frequency of contact with NGOs, prior level and perception of experience with NGOs, and the level of pressure exerted by NGOs. The authors report on results of a survey of the Top 500 firms in the Netherlands on their interactions with NGOs, finding general support for our hypotheses, and suggest that understanding the motives for firm–NGO interactions can teach us more about firms’ corporate social activities and the way such activities are shaped in the dynamic interplay between firms and their stakeholders. Our findings are relevant for future research on cross-sectoral interactions, for corporations considering future relationships with NGO cohorts, and for broader questions about the role of stakeholders and the role of business in society. (shrink)

This research uses a survey to analyze types of benefits sought by partners in cross-sector collaborations in Spain and to test and build upon theories that indicate prior collaboration experience and partner alignment will positively affect value creation through the collaboration. Using exploratory factor analysis to operationalize a broad range of potential benefits into more specific concepts, the results of this study identify distinct factors that characterize the types of benefits sought by non-profit organizations and businesses engaged in cross-sector collaborations. (...) Findings show that prior experience and alignment positively affect each factor for value creation. Prior experience is also found to influence the type of benefits sought from cross-sector collaborations and to positively affect alignment in terms of mission and strategy. Unexpectedly, the study also finds that prior experience moderates the effect of alignment on value creation. (shrink)

This paper explores an empirical puzzle, namely, how inter-organizational relationships can be sustained between organizations that draw upon distinctive—and potentially conflicting—institutional logics under conditions of power asymmetry. This research analyses cases of these relationships and suggests some key conditions underlying them. Examining relationships between ‘Fair Trade’ organizations and corporate retailers, a series of contingent factors behind the dynamic persistence of such relationships are proposed, namely: the presence of pre-existing ‘hybrid logics’; the use of boundary-spanning discourses; joint tolerance of conflict; and (...) co-creation of common rules. These four elements are supported by a fifth mediating factor, i.e. the presence and use of a Fair Trade certification system in the collaboration. The latter appears as a central vehicle facilitating cross-logic relationships—it can be seen as a ‘boundary object’ embodying a series of narratives and discourses that are open to multiple interpretations corresponding to the dominant institutional logics of each partner organization. (shrink)

The aim of this study is to understand how governance mechanisms in cross-sector collaborations (CSCs) for sustainability affect value creation and capture and subsequently the survival of this organizational form. Drawing on a longitudinal, participatory, single-case study of collaborative action in the textile industry, we identify three governance mechanisms—safeguarding, bundling and connecting—that coevolve with the rising and waning of collaborative tensions and the shifting levels of action in the CSC we studied. These mechanisms aided value creation and helped facilitate private (...) value capture. We integrate these insights into a process model that visualizes the interplay between governance mechanisms of tensions and systems of value creation and capture in CSCs for sustainability. Our study contributes to the cross-sector collaboration literature by providing a dynamic and nuanced understanding of how governance mechanisms influence outcomes in CSCs for sustainability. We also add to the business model for sustainability literature by theorizing the value creation and capture system of collaborative rather than individual organizations. Our findings have important implications for policymakers who fund collaborative organizations and practitioners who manage or participate in them. (shrink)

Over the last decade, businesses, policymakers, and researchers alike have advocated the need for value creation through inter-organizational collaboration. Researchers have widely argued that organizations that are engaged in collaborative processes create value. Because researchers have tended to focus on the identification of organizational motivations and on key success factors for collaboration, however, both the nature and processes of value creation in inter-organizational collaboration have yet to be examined. A recent theory by Austin and Seitanidi :726–758, 2012a; Nonprofit Volunt Sect (...) Q 41:929–968, 2012b) has proposed an analytical framework for analyzing value creation in inter-organizational collaboration, based on four types of value. The purpose of this current study is to empirically test this framework, and to provide key pointers for analyzing the nature of value, particularly in relation to learning. Our detailed empirical research is based on a 6-year retrospective case study of an inter-organizational partnership within an international development project for local economic development in Guatemala. The study’s contributions are twofold. First, it provides evidence of the critical path of the creation of diverse types of values in a collaborative process; second, it links the different types of value creation with the types of learning that occur in an inter-organizational process. (shrink)

This study focuses on how moral aspects of purpose shape collaborative processes. It does so by analyzing the unfolding of 21 relationships between four nonprofits and their funders using a framework based on French pragmatist sociology to help uncover the deeply held, ideological and moral beliefs that underscore assumptions about what the overarching purpose of a collaborative effort is or should be. This study contributes to the literature on single and cross-sectoral collaboration by showing that the way partners handle and (...) reconcile differences about purpose is related to the forms of agreement likely to be achieved. It also suggests that certain forms of agreement are inherently more enduring than others. Taken as a whole, this study provides some plausible explanations as to why so many collaborations fail despite their seeming benefits for all the parties involved. (shrink)

Based on a comparative case study of six cross-sector partnerships (CSPs) in global health, we illustrate how a CSP’s aim to address a social issue on the basis of products influences the governance of collective action within the partnership and beyond, at the field level. We show how such product focus, through specialization, influences a CSP’s structures and interaction culture and, as a reflection of the partners’ underlying logics, generates different CSP-field effects. Specifically, if conceived as self-contained and without considering (...) the implications for other field players and programs, a product focus may expedite collective action within the CSP, but spur fragmentation and disruption at the field level. Conversely, if designed to strengthen field capacity and integration at the product-field interlinkages, a product focus may take longer to form but helps avoid the above field effects. On this basis, we advance theory on CSPs’ product focus as a multilevel coordination mechanism and elaborate on the implications for designing product-based CSPs. (shrink)

Over the last decade, businesses, policymakers, and researchers alike have advocated the need for value creation through inter-organizational collaboration. Researchers have widely argued that organizations that are engaged in collaborative processes create value. Because researchers have tended to focus on the identification of organizational motivations and on key success factors for collaboration, however, both the nature and processes of value creation in inter-organizational collaboration have yet to be examined. A recent theory by Austin and Seitanidi :726–758, 2012a; Nonprofit Volunt Sect (...) Q 41:929–968, 2012b) has proposed an analytical framework for analyzing value creation in inter-organizational collaboration, based on four types of value. The purpose of this current study is to empirically test this framework, and to provide key pointers for analyzing the nature of value, particularly in relation to learning. Our detailed empirical research is based on a 6-year retrospective case study of an inter-organizational partnership within an international development project for local economic development in Guatemala. The study’s contributions are twofold. First, it provides evidence of the critical path of the creation of diverse types of values in a collaborative process; second, it links the different types of value creation with the types of learning that occur in an inter-organizational process. (shrink)

Cross-sector development partnerships are project-based collaborative arrangements between business, government, and civil society organizations in support of international development goals such as sustainability, health education, and economic development. Focusing on public private partnerships in development cooperation, we examine different constellations of bridging agents and their effects in the formation of single CSDP projects and longer-term alliances. We conceptualize bridging agency as a collective process involving both internal partner representatives and external intermediaries in initiating and/or supporting roles. We find that the (...) involvement of external intermediaries eases the formation of single projects and longer-term alliances. However, when projects are initiated by external intermediaries they tend to be repetitive and narrow in scope, whereas projects initiated by internal partner representatives often explore novel agendas and embody a greater potential for social innovation. Yet, the longer-term pursuit of these agendas beyond single projects may require external intermediaries in supporting roles. Findings help better understand micro-processes and collective practices of brokerage and alliance formation in transnational governance contexts and beyond. (shrink)

In this article, we offer an approach of how participative stakeholder innovation can be evaluated in complex multistakeholder settings that address wicked issues. Based on the principle of mutual value creation, we present an evaluation framework that accounts for the social interaction process during which stakeholders integrate their resources and capabilities to develop innovative products and services. To assess this evaluation framework, we collected multiple data from the case study of the Swiss Cardiovascular Network, which represents a multistakeholder setting related (...) to the prevention of cardiovascular disease. Our findings indicate that the evaluation dimensions of the stakeholders’ mindsets, the process and context of the stakeholder interactions, as well as the outcomes are useful concepts to account for a cooperative process of innovation in a multistakeholder setting. We discuss both the theoretical and practical insights of our analysis for participative stakeholder innovation. (shrink)

This study assessed whether and how government–business partnerships offer a unique platform that targets profound environmental impacts via the promotion of radical eco-innovation. It applied transactional cost and complementary logics to explain the rationale of GBP formation for radical eco-innovation, and further assessed the operation of GBPs from governance, learning, and rulemaking aspects. This study applied propensity score matching technique to empirically test these theoretical associations using 225 observations representing 166 U.S. firms’ participation in 192 environmental alliances between 1985 and (...) 2013. The study results confirmed GBPs’ role in channeling public and private efforts in pursuing transformative environmental change via the adoption of radical eco-innovation goals. Results highlight four critical elements of GBP operation—effective governance, exploration learning, cognitive learning, and rulemaking—that enable participants to embrace these radical environmental solutions. (shrink)

This paper investigates how social enterprises navigate through the ethical complexity of social change and extends the ethical quandaries faced by social enterprises beyond organisational boundaries. Building on the emerging literature on the ethics of SEs, I conceptualise ethics as an engagement with power relations. I develop theoretical arguments to understand the interaction between ethical predispositions of a SE and the normative structure of the social system in which it operates. I applied this conceptualisation in a hierarchical and heterogeneous rural (...) Indian context to provide insights into the moral ambiguity of ethical decision-making and suggest pathways for ethical actions. Taking a qualitative case study approach, I followed an exemplary SE’s implementation process in India. I observed ethical challenges in designing the implementation process, selecting the beneficiaries and sustaining the programme. I also identified three actions of the SE—the action of recognition, the action of reposition and the action of collaboration—and developed a transformative process model. I discuss the theoretical implications of this research for SEs and recommend a critical engagement with ethical theories to address systemic problems. (shrink)

An increasing amount of research has examined the management of competing logics, and possible tensions arising between them, within “hybrid organizations.” However, the ways in which the relationships of hybrids with other organizations shape the conciliation of these logics and tensions have received limited attention so far. In this theoretical paper, we examine how hybrid organizations deal with interorganizational collaboration, in particular whether and how their hybridity can be maintained when they partner with “dominant-logic organizations.” Drawing on empirical literature on (...) social enterprise–corporate collaborations, we develop a framework and several propositions on how competing logics and their balancing within hybrid organizations may be affected by interactions with organizations underpinned by one dominant logic. We suggest that influences will mostly depend on the type of collaboration pursued. A collaboration based on a lower level of engagement and interaction between the two partners is likely to give precedence to one logic over the other, reducing inter-logic tensions but possibly compromising organizational hybridity. By contrast, a collaboration featuring numerous interactions and mission compatibility may facilitate sustained hybridity if tensions are acknowledged and managed. Our propositions contribute to the literatures on hybrid organizations, interorganizational collaboration, and social enterprise. (shrink)

Cross-sector partnerships (CSPs) between nonprofits and businesses are increasingly implemented in response to humanitarian crises. These partnerships are motivated by ideals of alignment as stakeholders strive to find the “sweet spot” between humanitarian and business interests. However, this article shows that the ideals of alignment differ from the actual practices of alignment in the CSPs, and sweet spots are not merely found but constructed in and through changing relations of power. Based on an ethnographic case study of partnerships between a (...) global humanitarian organization and five technology companies, the article deploys a theoretical lens from critical humanitarian studies to analyze how alignment in CSPs comes about in practice. This analysis demonstrates that in the construction of alignment, the companies’ interests become the priorities with which humanitarian organizations must align their and their beneficiaries’ needs. Consequently, while the discourse of sweet spots perpetuates an ideal of alignment where all partners benefit equally from the partnership, it legitimates power imbalances and asymmetrical alignment in practice. (shrink)

In this article, we suggest that one of the unexplored paths toward collaboration between firms and civil society organizations starts with confrontation or potential conflict, and that the transition toward collaboration can be further understood if one focuses on triadic relationships rather than dyadic ones. We analyze the presence of third parties and their different roles to explain how collaboration is facilitated. The article aims at bringing together the bodies of research on business–civil society confrontation and on business–civil society collaboration. (...) It offers a comparative analysis of four case studies, and proposes a typology of third parties composed of facilitating allies, participating allies, mediators, and solution seekers. We conclude with some implications for further research as well as for practice. (shrink)

This article provides a new mechanism in understanding how partner heterogeneity moderates an alliance's ability to advance corporate social responsibility goals. I identified the antecedents for firms to select a more diverse set of partners and explored whether more diverse alliances (especially cross-sector alliances) may facilitate partners to achieve more proactive environmental outcomes. I employ 146 environmental alliances formed in the U.S. between 1990 and 2009 to test the assertions. Results suggest that firms with innovative orientation and alliance experiences tend (...) to choose a more diverse set of partners (especially cross-sector partners); and such partner heterogeneity in turn moderates an alliance's environmental outcomes—compared to inter-firm alliances, cross-sector alliances are more likely to facilitate partners to pursue more proactive environmental strategies. (shrink)

The engagement of firms in environmental collaborations has become a ubiquitous phenomenon in today’s business landscape. Yet much of the research to date is fragmented across multiple disciplines and lacks a clear framework to support future study. The authors consolidate and synthesize existing contributions into a conceptual map comprised of antecedents, consequences, and contingencies to better understand environmental collaborations. This map offers a perspective on how firms develop strategies, structures, and capabilities to manage and balance environmental and economic performance and (...) increasing demands for environmental sustainability from multiple stakeholders and society. The authors then highlight existing gaps in the extant literature and outline a future research agenda, including key questions and issues needing additional study. (shrink)

The United States National Preparedness System has evolved significantly in the recent past. These changes have affected the system structures and goals for disaster response. At the same time, actors such as private businesses have become increasingly involved in disaster efforts. In this paper, we begin to fill the gap in the cross-sector literature regarding interactions that have systemic impacts by investigating how the simultaneous processes of systemic change and intensifying cross-sector interaction worked and interacted in the context of the (...) preparedness system. We examine these inter-linkages through a qualitative study in the setting of Hurricane Sandy. Drawing from systems theory, we develop a grounded model that provides an explanation for the system change and highlights how cross-sector interaction relates to the changes observed in the system. (shrink)

We advance research on how businesses engage with the complex social problems currently known as Grand Challenges. We study the concepts that preceded the term Grand Challenges, the connected ontologies that ground them, and the diversity of perspectives they offered. We construct a knowledge map that includes well-researched obstacles, such as governance obstacles hindering engagement and sensemaking obstacles limiting the ideation of novel and creative efforts. But we also build on prior research to identify curation obstacles, which precede engagement and (...) define which problems receive social attention, and adaptation obstacles, which create uncertainty over workable solutions and bias the momentum of social systems toward the status quo. Our broader view on the obstacles defining Grand Challenges opens new pathways and identifies underexplored levers by which to understand and influence business engagement with complex social problems. (shrink)

Cross-sector social collaborations are increasingly recognised as valuable inter-organizational arrangements that seek to combine the commercial capabilities of private sector companies with the deep knowledge of social and environmental issues enrooted in social sector organizations. In this paper we empirically examine the configurations of conditions that lead to lasting cross-sector social collaboration. Situating our enquiry in Schütz’s theory of life-worlds and the reciprocity literature, we employ fuzzy-set qualitative comparative analysis to analyse data gathered from 60 partners in 30 cross-sector social (...) collaborations. We find two distinct types of configurational pathways leading to lasting cross-sector social collaboration which we label reciprocal economic exchange based on direct reciprocity, and reciprocal social exchange based on generalised reciprocity. The pathways vary in terms of the delivery of expected and unexpected resources and benefits. We introduce the concept of double relationality to explain the interdependence of structure and action in lasting cross sector social collaboration. (shrink)

Using the symbiotic sustainability model as a framework, this research investigates how many and with which businesses top nonprofit organizations report partnerships. We examined the websites of the 122 largest, most recognizable U.S. nonprofits. These websites included information about 2,418 business–nonprofit partnerships with 1,707 unique businesses. The results suggest key differences with previous research on how U.S. Fortune 500 companies report B2N partnerships. Leading nonprofits report more B2N partnerships than U.S. Fortune 500 companies do. Furthermore, nonprofits do not maintain industry (...) exclusivity in reporting B2N partnerships, like their business counterparts do. Finally, social issue industries do not exert the same isomorphic pressures on B2N partnerships that economic industries do. New propositions that extend the symbiotic sustainability model are presented to account for nonprofits’ unique goals for capital accumulation in B2N partnering and the industry characteristics. (shrink)

Cross-sector partnerships (CSP) are increasingly recognized as essential for addressing our world’s mounting sustainability challenges. However, place is often considered merely as a contextual backdrop for these partnerships in CSP research. In this study, we focus on the ways in which place, including the natural, built, and cultural dimensions of geographic locations, is actively leveraged to facilitate cross-sector collaboration. Employing a qualitative and engaged research approach, we helped organize and studied two workshops held in small communities on the east coast (...) of Canada whose goal was to build a cross-sector network of community leaders focused on revitalizing communities suffering from the collapse of their primary industry, the cod fishery. We show how the staging of place fostered deeper connections among participants by reducing barriers to participation, intensifying contact with others, and enabling participants to share local knowledge. In turn, connecting through place prompted participants to recognize a shared purpose and sense of belonging, two key elements for building cross-sector collaboration. (shrink)

Multi-stakeholder partnerships have become a major driver to attain the United Nations Sustainable Development Goals. However, managing MSPs is difficult because of the multiple complexities they involve. We seek to contribute to a better understanding of how MSPs cope with these complexities by exploring the MSP scope. In our study of four global health MSPs, we find that a function-oriented scope in terms of focusing on a single intervention helped filter the relevant external and internal complexities, whereas an issue-oriented scope (...) focused on addressing the health issue with multiple interventions magnified the complexities. As a result, the latter MSPs became overwhelmed and self-absorbed, while the former MSPs managed to remain outward-looking and sustain their collaborative energy and support. On this basis, we identify three mechanisms through which the MSP scope either helped or hampered the ability to cope with complexity, and we discuss the theoretical and practical implications for MSPs addressing the SDGs. (shrink)

The growing body of literature on partnerships has paid most attention to their implications at the macro level, for society, as well as the meso level, for the partnering organisations. While generating many valuable insights, what has remained underexposed is the micro level, i.e. the role of managers and employees in partnerships, and how their actions and interactions can have an effect on the spread and potential effectiveness of collaborative efforts. This article uses a case-study approach to empirically explore the (...) patterns and potential boundary conditions of so-called ‘trickle effects’ of partnerships among individual actors within and outside partnering companies, which have thus far only been proposed conceptually. Based on interviews with employees from three different companies, we found an evidence of trickle-down and trickle-up effects with higher and lower management, as well as trickle-round effects with colleagues, family, friends and customers. The article discusses several partnership characteristics that seem to play a role, and notes implications for research and practice. (shrink)

A growing body of research looks into business-led efforts to create social value by improving the socio-economic well-being of Base of the Pyramid (BoP) communities. Research shows that businesses that pursue these strategies—or BoP businesses—face distinct sets of challenges that require unique capabilities. There is, however, limited effort to synthesize current evidence on the mechanisms through which these businesses create social value. We systematically review the literature on BoP businesses, covering 110 studies published in business and management journals. We start (...) by using bibliographic analysis to map the broad contours of the literature in terms of its common theoretical and empirical approaches, intellectual core, and evolution in time. We subsequently conduct a qualitative content analysis on the identified articles to synthesize their main findings. The analysis leads to a conceptual framework that explicates the antecedents, constraints, capabilities, and contingencies that drive social value creation. In addition to providing a rich and systematically organized account of the evidence, our analysis provides a critical reflection on the ethical dilemmas of social value creation efforts for the BoP, and outlines promising avenues for future research. (shrink)

Extant research underlines the critical challenge for firms to rigorously and consistently evaluate their growing number of cross-sector partnerships for sustainability and suggests formalizing evaluation processes by introducing formal practices. However, empirical research is scant and inconclusive. This study aims to develop an empirically grounded understanding of how firms formalize the evaluation processes of such partnerships and of what drives this formalization, to complement the so far mostly conceptual literature. We inductively analyzed 31 semi-structured interviews with 33 experts from firms (...) and their partnering nonprofits and further secondary data on organizations’ partnerships. We contribute to the cross-sector partnership research by analyzing firms’ practices related to the formalization of the internal as well as the joint partnership evaluation process with nonprofits. We propose a conceptual framework to explain why firms implement different formal practices to reduce the dependency on individuals’ skills, experiences, or judgments in evaluating partnerships. (shrink)

Although corporate social innovation studies in developing countries acknowledge the importance of firm resources and capabilities for attaining social goals, they overlook the way in which these interact with broader institutions to generate successful outcomes. We address this gap by exploring the relationship between firm resources-capabilities and institutions that is conducive to meeting both business and social interests in developing countries. By employing a fuzzy-set qualitative comparative analysis of corporate social innovation projects performed by joint ventures of Dutch SMEs and (...) their local partners in developing countries, we show that firm resources and/or capabilities complement strong institutions in these countries. Corporate social innovation can also be facilitated by firm capabilities in running highly legitimate projects that substitute institutional voids in these economies, attesting to multiple paths that corporations can take to achieve social innovation. (shrink)

This dissertation abstract and the reflection commentary present the work done by Dr. Lea Stadtler. Comprising four articles, the dissertation explores the challenge of designing successful public–private partnerships for development and contributes to the discourse on partnerships and business engagement in society. Article I adopts the company perspective and develops a conceptual framework for interest alignment in PPPs for development. Based on a theoretical analysis, Article II examines the role that different structures play in handling common design challenges. Articles III (...) and IV are empirical: The former analyzes how partners cope with tensions occurring on the PPP’s boundaries, while Article IV explores the roles of broker organizations, which increasingly facilitate the partnering process of PPPs for development. This extended dissertation abstract introduces the dissertation’s research focus and summarizes each article’s research question, methods, and main findings. The reflection commentary in the appendix discusses the author’s views of her dissertation journey as a junior scholar and the research process. (shrink)

Social innovation is about solving important problems in new ways. In professional exchange fields, however, structuring and constraining forces make introducing new solutions exceedingly difficult, and known pathways that introduce new solutions are unlikely to be successful. In this article, I examine how social innovation can be encouraged in a professional exchange field. I identify three kinds of disrupting action (entwining problems, reconfiguring arrangements, and actively waiting) that can be used to encourage social innovation. These actions interrupt and expand essential (...) elements of professionals’ work and they condition parts of the field to be supportive of and susceptible to social innovation. This research contributes to literature in three ways. First, it examines social innovation in a setting that has not been explored, uncovering an amalgamation of pathways that encourage social innovation. Second, it describes three types of disrupting action that set pathways in motion. Third, it conceptually links disrupting action to social innovation. (shrink)

Why and how does a multinational corporation adapt its strategy and organizational capabilities to address markets at the base of the pyramid? This paper builds on the results of a 3-year action research program conducted with Lafarge, a global building materials company, during which it started to consider the BOP segment as a strategic business opportunity. The article shows how pilot projects and global action networks created as part of the action research in the Indonesian subsidiary and the firm’s head (...) office contributed to this change. The paper then discusses the implications of BOP strategies in terms of organizational capabilities. (shrink)

This article draws on resource‐based theory and the literature on strategic intent to develop a theoretical model that explains the concept of mission drift in microfinance institutions . We argue that the differential strategic intents of commercially oriented, for‐profit, and socially oriented nonprofit organizations drive the acquisition of disparate resources and capabilities, which in turn drives distinct performance outcomes, including a focus on different markets within the overall base of the pyramid . The article suggests that it is the dynamic (...) aspects of changing strategic intent and the consequent timing delays in the development of associated resources and capabilities that lead to various issues of mission drift. Finally, we suggest that cross‐sector alliances between for‐profit and nonprofit MFIs may benefit from the unique capabilities of both types of organizations and deliver the most and broadest impact on poverty alleviation in BOP markets. (shrink)

Place-based policies tackle grand socio-economic challenges through differentiated, context-sensitive interventions. However, they often run the risk of under- or mis-performing. This work studies how grand challenges translate from policy to cross-sector partnerships through place. By focusing on the place-based policy of regional smart specialization (RIS3), I investigate how the setup of science and technology parks mediates the practices of the actors in the translation chain: a transnational policymaker (macro), a regional broker (meso), and a local partnership which served as prototype (...) for the regional policy (micro level). I document two types of practices—emplacement and space configuration—enacted at each level, and show how their interplay transformed the grand challenge from a cautious ideal at the macro level which balances risk and responsibility, to an optimistic and risk-prone approach at the partnership level. The study contributes to the policy and cross-sector partnerships literatures by documenting a two-sided effect of place-based policy and a consequent risk of ethical reversal, from an early attractor bringing partners together to a later accomplice keeping the partners together despite evident signs of failure. By adopting a strong multimodal approach, I also distinguish four types of multimodal outcomes—ideal type, prototype, virtual model, and lived artifact—which perform the two-sided effect and bring about the risk of reversal. Practical implications include a redistribution of the burden of failure from the CSPs implementing the grand challenges to the institutional fields in which these are bred. (shrink)

Scholars are increasingly exploring community-supported businesses (CSBs) as promising alternatives to conventional ones. However, researchers are so far overlooking that CSBs vary in their underlying business models, that is, how they propose, create, and capture value. We apply a multi-staged qualitative research process to carve out the differences between community-supported business models (CSBMs) that exist in practice. Our research shows that transactional and relational CSBMs differ in how they propose, create, and capture value which, in turn, has implications for the (...) resources required to thrive. (shrink)

In emerging countries such as China where the government is gradually withdrawing from involvement in social affairs, firms face dilemmas around relational risks of partnering with different forms of nongovernmental organizations (NGOs). Affiliated NGOs (those with close relationships with government) are more likely to sabotage the social partnership through misconduct, and are also capable of higher standards of collaborative social performance compared with independent NGOs (those with few such relationships). This study proposes that firms’ political embeddedness helps mitigate relational risks (...) in cross-sector partner selection, and finds that politically connected firms are more likely to partner with affiliated NGOs than with independent NGOs in China. This effect is more pronounced for private firms that are less socially oriented or are located in regions with less-developed formal institutions and social trust. Our findings highlight relational risks relevant to cross-sector partner selection literature and offer important insights into how relational risks can be reduced in cross-sector partner selection in emerging countries. (shrink)

Cross-sector partnerships (CSPs) offer much-needed collaborative spaces to address socio-ecological problems. Yet it is unclear if and how CSPs activities contribute to transformative innovation (TI) that addresses these problems and creates socio-ecological impact. Understanding how CSPs can contribute to TI is essential for CSP practitioners and researchers in order to address pressing socio-ecological problems. To better understand how CSPs can contribute to TI and socio-ecological impact, I conducted a multiple case-study of eight CSPs in the field of sustainable, circular packaging. (...) The findings—based on the novel Transformative Innovation Process framework this article introduces—reveal three innovation pathways with different potentials for contributing to socio-ecological impact. Of the three, the complementary pioneering and adapting pathways have the greatest potential for contributing to socio-ecological impact, and the consolidating pathway has the least potential. This article makes theoretical contributions to the CSP literature as well as practical contributions for CSPs. (shrink)

Relations between non-governmental organizations (NGOs) and companies have been the subject of a sharply increasing amount of publications in recent years within academic business journals. In this article, we critically assess this fast-developing body of literature, which we treat as forming a ‘business and society discourse’ on NGO–business relations. Drawing on discourse theory, we examine 199 academic articles in 11 business and society, international business, and management journals. Focusing on the dominant articulations on the NGO–business relationship and key signifiers they (...) rely on, we analyze the problem-settings of articles in order to reveal the statements that are acceptable and appropriate within this field. Our threefold aim is to (1) identify dominant articulations of NGO–business relations in business and society discourse, (2) expose those articulations that are silenced or suppressed by these dominant articulations, and (3) critically assess possible power effects of these discursive dynamics in the field of discursivity. While business and society discourse on NGO–business relations overall remains open to many different articulations, we also find that those articulations that focus on NGO–business partnerships and governance initiatives tend to privilege collaborative and deliberative ways of engaging and marginalize more adversarial subject positions. We call for more recognition of the potentially constructive role that can be played by conflict. (shrink)

We provide a grounded model for analysing formation in cross sector social partnerships to understand why business and nonprofit organizations increasingly partner to address social issues. Our model introduces organizational characteristics, organizational motives and history of partner interactions as critical factors that indicate the potential for social change. We argue that organizational characteristics, motives and the history of interactions indicate transformative capacity, transformative intention and transformative experience, respectively. Together, these three factors consist of a framework that aids early detection of (...) unnecessary partnering efforts and provide indicators of partners' transformative potential. Further we discuss the reciprocal, multi-level nature of change in social partnerships through the interplay between the organizational, individual and social levels of reality. The formation stage of partnerships contributes to the partnership and corporate social responsibility (CSR) literatures a deep understanding of the organisations' early interactions by placing within a historical context that reveals their dynamics and their potential to deliver organisational and social change. (shrink)

Informed by the symbiotic sustainability model, this theory-building research compares a stratified subsample ( N = 66) from 695 nongovernmental organizations (NGOs) that have relationships with U.S. Fortune 500 companies in 11 industries ( N = 155). Using network analysis and centering resonance analysis, the research compares the “about us” statements of three groups of NGOs with different indegree centralities. The results of this study suggest that NGOs with multiple corporate partners are distinct from NGOs with single corporate partners. Across (...) all levels of centrality, NGOs in cross-sector cooperative relationships tend to focus on children and be service oriented. In addition, federated NGOs were more likely to occupy a central position in the business–NGO cooperative network and foundations were more likely to have relationships with multiple corporations. Local NGOs were more likely to have only one cross-sector relationship and were, by a significant margin, the largest group. Propositions for future research are offered based on the findings. (shrink)