Firm-nonprofit collaboration: Explaining the rationale behind firms’ cross-sector partner choices

Abstract

Cross-sector partnerships between firms and nonprofit organizations (NPOs) are emerging at an unprecedented rate to address sustainability issues. Extant research on cross-sector partnerships explains the firms' motivations to engage in partnerships but little is known about what drives the firms' partner choice. We build on firm-firm alliance research, differentiating between network-reinforcing and network-broadening strategies for finding partners. Based on a qualitative study with 33 experts from 17 frontrunner companies and 14 partnering NPOs, as well as secondary data, we assess the trade-offs between these two strategies and explore firms’ partner search and selection decisions. We advance cross-sector partnership research by proposing three drivers to explain why firms in our sample preferred to reinforce (rather than to broaden) their networks when forming additional cross-sector partnerships for sustainability. Moreover, we propose two conditions to explain why frontrunner firms often rely on opportunity-driven (rather than search-driven) partnership formation. These insights shed light on the type of formation strategy used in the context of cross-sector partnerships for sustainability.