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Performance criteria of strategic alliances between MNCs and NPOs

Title: Performance criteria of strategic alliances between MNCs and NPOs

Diploma Thesis , 2005 , 72 Pages , Grade: 1,0

Autor:in: Diplomkaufmann Björn-Alexander Gehrmann (Author)

Business economics - Business Management, Corporate Governance
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Summary Excerpt Details

Strategische Allianzen zählen zu den wichtigsten Gebieten der Organisationsforschung sowie des Strategischen Managements. Untersuchungen konzentrieten sich bisher auf Partnerschaften von Unternehmen. In den letzten Jahren stieg die Anzahl von Kooperationen zwischen Firmen und Non-Profit-Organisationen (NPO) wie Vereinen oder Sozialen Gruppen. Unilever, GlaxoSmithKline oder Microsoft zählen zu den Unternehmen, die mit NPOs (auch NGOs) wie dem World Wildlife Fund for Nature, Medicines for Malaria Venture oder Greenpeace zusammenarbeiten. Besonders in den Bereichen der AIDS/HIV-Bekämpfung, dem Umweltschutz oder der Agrarwirtschaft arbeiten Firmen vermehrt mit NPOs zusammen. Problematisch ist bis heute, wie der Erfolg oder Misserfolg derartiger Allianzen zu fassen ist, da sowohl ökonomische als auch soziale Ziele in die Messung einfließen müssen.

Björn Gehrmann untersuchte und entwickelte erstmals, welche Kriterien Erfolge von Partnerschaften zwischen Multinationalen Unternehmen (MNCs) und NPOs sichtbar machen können. Mit Hilfe einer Balanced Scorecard strukturiert der Autor die Erfolgskriterien und liefert Unternehmen sowie Organisationen aus dem sozialen Sektor ein Werkzeug, gemeinsame Projekte in den Bereichen Corporate Social Responsibility, Corporate Citizenship oder Nachhaltigkeit zu messen. Diverse Beispiele aus der Praxis verdeutlichen und unterstreichen die Ergebnisse. Das Werk wurde vom Lehrstuhl für Organisation und Unternehmensführung der Universität Paderborn mit der Bestnote ausgezeichnet und basiert auf den Top-Journals der deutschen sowie amerikanischen Management und Strategie Forschung.

Excerpt


Table of Contents

1. Introduction

2. Forging Strategic Alliances across Sector Frontiers

2.1 The Framework of Alliances between MNCs and NPOs within the Social Context of Organizations

2.2 Introducing the NPO as potential Alliance Partner for MNCs in Cross-sector Alliances

2.3 Development of a Working Definition for Cross-sector Alliances between MNCs and NPOs

2.4 Motives of MNCs and NPOs to engage in Cross-sector Alliances

3. Developing Performance Criteria from a bilateral Theoretical Perspective

3.1 Literature Review on Alliance Performance

3.2 Theoretical Approaches of Alliance Performance

3.3 The Resource-based View as Theoretical Foundation

3.3.1 Historical Development

3.3.2 Main Assumptions and Conceptual Framework

3.3.3 Performance Criteria in Cross-sector Alliances derived from the Resource-based View

3.4 The New Institutionalism as Theoretical Foundation

3.4.1 Historical Development

3.4.2 Main Assumptions and Conceptual Framework

3.4.3 Performance Criteria in Cross-sector Alliances derived from the New Institutionalism

3.5 Combining Performance Criteria derived from the Resource-based View and New Institutionalism

4. Structuring Performance Criteria in Cross-sector Alliances

4.1 The Balanced Scorecard as Tool to assess Performance in an Environment of multiple Interest

4.2 Modifying the Balanced Scorecard to measure Cross-sector Alliance Performance

4.3 Performance Conflicts emerging from Combination of Resource-based View and New Institutionalism

5. Concluding Remarks

5.1 Summary

5.2 Limitations and Implications

Objectives and Core Themes

This thesis aims to identify concrete performance indicators for strategic alliances between multinational companies (MNCs) and non-profit organizations (NPOs). It addresses the research question of how to evaluate success in cross-sector collaborations that are influenced by diverse institutional contexts and individual partner requirements, utilizing the resource-based view and new institutionalism to build a multidimensional performance framework.

  • Theoretical foundation of cross-sector alliances through Resource-based View and New Institutionalism.
  • Development of specific performance criteria tailored to the unique nature of MNC-NPO partnerships.
  • Adaptation of the Balanced Scorecard as a structural instrument for measuring cross-sector alliance performance.
  • Analysis of performance conflicts arising from the integration of different theoretical perspectives.
  • Examination of the interplay between internal resource alignment and external institutional legitimacy.

Excerpt from the Book

(1) Synergy effects

Complementary resource alignment, which has been broadly acknowledged as type of alignment in alliances, can be seen as more important for performance criteria in alliances between multinationals and non-profits. Resources are classified as complementary when they are even the same resources (such as technology, know-how, or reputation) as long as their nature is different. More over, complementary resources imply that each organization contributes unique and (heavily) required resources to the alliance that, consequently, the pool of alliance resources becomes stronger and enhances the fulfillment of strategic objectives. Distinctive resources of a partner that are brought into an alliance result in a synergetic effect whereby this outcome is more valuable, scarce and impossible to imitate than the sum which is obtained from individual resources alignment. This underlines the suggestion that alliances are formed in order to achieve what is impossible to achieve on their own. In addition, complementary resources do not only have a leveraging effect on each organization’s unique resources,

Summary of Chapters

1. Introduction: This chapter defines the scope of the thesis, emphasizing the growing importance of strategic alliances between multinationals and non-profit organizations and outlining the fundamental research question regarding performance evaluation.

2. Forging Strategic Alliances across Sector Frontiers: This section establishes the theoretical framework for cross-sector alliances, focusing on the social context of organizations and defining the distinct characteristics of NPOs as partners for multinationals.

3. Developing Performance Criteria from a bilateral Theoretical Perspective: This chapter derives performance criteria from both the resource-based view and new institutionalism to address the dual need for internal competitive advantage and external institutional legitimacy.

4. Structuring Performance Criteria in Cross-sector Alliances: This section presents a modified Balanced Scorecard specifically designed to measure and structure performance within the complex environment of cross-sector partnerships.

5. Concluding Remarks: The final chapter summarizes the findings of the thesis, addresses the inevitable performance conflicts between different criteria, and discusses limitations while providing implications for future research.

Keywords

Strategic Alliances, Multinational Companies, Non-profit Organizations, Cross-sector Alliances, Alliance Performance, Resource-based View, New Institutionalism, Balanced Scorecard, Synergy Effects, Social Capital, Legitimacy, Performance Measurement, Corporate Social Responsibility, Institutional Context, Goal Fulfillment.

Frequently Asked Questions

What is the primary focus of this diploma thesis?

The work focuses on identifying and structuring performance criteria for strategic alliances between multinational companies (MNCs) and non-profit organizations (NPOs) by bridging the gap between economic and institutional perspectives.

What are the central themes covered in this research?

The central themes include the unique organizational characteristics of NPOs, the adaptation of the resource-based view and new institutionalism, and the application of a modified Balanced Scorecard to these partnerships.

What is the primary research question?

The thesis asks which concrete indicators are capable of demonstrating the success of strategic alliances between multinational companies and non-profit organizations across market economies.

Which scientific methodology is employed?

The author uses a theoretical approach by integrating the resource-based view and the new institutionalism to derive performance criteria, which are then structured using the Balanced Scorecard framework.

What is the focus of the main body of the text?

The main body examines the theoretical foundations for performance, develops eight specific performance criteria, and discusses the inevitable conflicts that arise when combining internal competitive and external legitimacy goals.

Which keywords best characterize this work?

The work is best characterized by terms such as cross-sector alliances, alliance performance, resource-based view, new institutionalism, and Balanced Scorecard.

How does the author define the role of NPOs in these alliances?

NPOs are defined as essential partners that provide social approval and legitimacy, but they also introduce distinct constraints and goals that differ fundamentally from for-profit corporate missions.

What does the "modified Balanced Scorecard" offer to cross-sector alliances?

It provides a multi-perspective instrument that evaluates not only goal fulfillment but also inter-organizational processes, learning, and the social approval of constituents, thereby accounting for the complexity of the cross-sector environment.

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Details

Title
Performance criteria of strategic alliances between MNCs and NPOs
College
University of Paderborn
Grade
1,0
Author
Diplomkaufmann Björn-Alexander Gehrmann (Author)
Publication Year
2005
Pages
72
Catalog Number
V64334
ISBN (eBook)
9783638571807
ISBN (Book)
9783638710527
Language
English
Tags
Performance MNCs NPOs
Product Safety
GRIN Publishing GmbH
Quote paper
Diplomkaufmann Björn-Alexander Gehrmann (Author), 2005, Performance criteria of strategic alliances between MNCs and NPOs, Munich, GRIN Verlag, https://www.grin.com/document/64334
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