Dynamic Interactions Between Organizational Value Frames and Sustainable Alliance Portfolios

Abstract

This paper demonstrates the emergence of alliance portfolios in the context of sustainability and how these alliance portfolios develop and change in a dynamic interaction with a firm’s business strategy, sustainability strategy, organizational value frames, and performance. Based on a longitudinal case from the electric utility sector, the paper builds a model of these dynamic interactions. The findings show that as the company integrates sustainability strategy into its business strategy, the alliance portfolio of the company becomes more diverse in terms of partner types. Moreover, the relationships between partners also evolve, turning previous stakeholders into formal strategic partners. The study shows that as the company’s organizational value frames move from narrow to broad, its alliance portfolio becomes more complex and the role of cross-sector partners particularly communities, governments, and NGOs, becomes more strategic for the company. The results of the study provide evidence that firms use their alliance portfolios as a space for negotiation between different frames, and these portfolios allow firms the cognitive flexibility to address multiple sustainability issues and bottom lines simultaneously. Therefore, the study contributes to the literature on corporate sustainability by developing a richer account of the emergence of sustainable alliance portfolios.