Strategic corporate-NGO partnerships: A study of value creation and success criteria

Thomas Ansbjørn Lorenzen

Student thesis: Master thesis

Abstract

Initially working from the theory of strategic alliances and cross-sector alliances this study investigates value creation in corporate-NGO partnerships. By using the method of case studying it analyses the value created in partnerships and categorizes the value according to the Triple Bottom Line. All case companies studied, experience economic value creation due to the partnership. The partnerships are then analyzed in order to determine which factors have enabled the value creation and are crucial in order to create successful corporate-NGO partnerships. The study shows that a good personal relation between the partnering organizations is crucial for the partnership to succeed. It also confirms that the closer linked the partnership is to the core competencies of the company, the more value emanate from the partnership. A main finding is also that in a cross-sector alliance more emphasis should be put on mitigating the risk of conflict between the partners than on constructive conflict resolution techniques, in order to be successful. What also affects the value creation within a partnership is how well the partnership fits into the overall strategy of the company. The stronger link, the faster will the partnership develop and the more value it will create. Having this thesis focused on value-creation within a corporate-NGO partnership, a topic for further research would be how investors value companies that enter into a cross-sector alliance. This thesis also discovered that the economic gains a company receives from a partnership is often publicly being put in the background, as companies are not “comfortable” with earning too much from their NGO partnerships, thus making further research into this topic very interesting.

EducationsMSc in Finance and Strategic Management, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2012
Number of pages90