Odd Couples: Understanding the Governance of Firm-NGO Alliances

32 Pages Posted: 14 Jul 2011

See all articles by Miguel Rivera-Santos

Miguel Rivera-Santos

Babson College

Carlos R. Rufin

Babson College - Management Division

Date Written: July 14, 2011

Abstract

We leverage insights and theories from the extensive inter-firm alliance literature to explore the effect of the sector of the partners on firm-NGO (B2N) alliance governance. Our analysis suggests that the sector of the partners has an important impact on alliance governance, not only because it constrains the availability of some governance mechanisms but also because it makes alternative mechanisms available or relevant to the partners. Specifically, we predict that B2N alliances will rely on contracts, a restricted scope, and non-equity hostages, such as reputational hostages and stakeholder involvement, rather than equity, leading to limited protection against opportunism. As a consequence, B2N alliance partners will need to rely on trust-based governance mechanisms to a greater extent than B2B alliance partners, although trust will be harder to build in B2N alliances.

Keywords: alliances, B2N alliances, NGOs, governance, opportunism, TCE, trust

Suggested Citation

Rivera-Santos, Miguel and Rufin, Carlos, Odd Couples: Understanding the Governance of Firm-NGO Alliances (July 14, 2011). Available at SSRN: https://ssrn.com/abstract=1885393 or http://dx.doi.org/10.2139/ssrn.1885393

Miguel Rivera-Santos (Contact Author)

Babson College ( email )

Babson Park, MA 02157
United States
781-239-5325 (Phone)

Carlos Rufin

Babson College - Management Division ( email )

Babson Park, MA 02457
United States
781-239-6411 (Phone)
781-239-5272 (Fax)

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