NGOs and the Creation of Value in Supply Chains

60 Pages Posted: 2 Mar 2017 Last revised: 27 Apr 2018

See all articles by Olivier Chatain

Olivier Chatain

HEC Paris - Strategy & Business Policy

Elena Plaksenkova

HEC Paris - Strategy & Business Policy

Date Written: February 27, 2017

Abstract

Firms and NGOs often collaborate to establish new supply chains. With a formal model, we analyze how NGOs can alleviate market failures and improve supplier economic inclusion while strategically interacting with firms. We account for the specific goals of the NGO and the need to induce collaboration between firms and their suppliers. The analysis reveals a "valley of disappointment", when NGO efforts benefit all actors but only marginally the firm. We also show that more powerful firms might prefer to internalize NGO functions, while firms with lower bargaining power and higher investment requirements are better off collaborating with NGOs. Finally, we study NGOs-firms matching patterns and find that firms with higher bargaining power match with NGOs holding stronger capabilities.

Keywords: NGO; Non-Governmental Organizations; Nonprofit; Firm-NGO Collaboration; Value Creation

Suggested Citation

Chatain, Olivier and Plaksenkova, Elena, NGOs and the Creation of Value in Supply Chains (February 27, 2017). HEC Paris Research Paper No. SPE-2017-1191. Available at SSRN: https://ssrn.com/abstract=2925276 or http://dx.doi.org/10.2139/ssrn.2925276

Olivier Chatain (Contact Author)

HEC Paris - Strategy & Business Policy ( email )

1, rue de la Libération
Jouy-en-Josas Cedex, 78351
France

HOME PAGE: http://www.olivierchatain.com

Elena Plaksenkova

HEC Paris - Strategy & Business Policy ( email )

Jouy-en-Josas Cedex, 78351
France

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