Abstract

The article analyses aspects of the cross-sector partnership of NGO and business actualizing the context of the governance dimension and collaborative value creation. The theoretical part of this article revealed the formal (contractual) and informal (relational) governance mechanisms, which influence the behaviour of partners in the cross-sector partnership. Moreover, the research presented organizational and partnership perspectives of the governance in cross-sector partnerships. The case study strategy was applied to conduct empirical research in Lithuania. It was found out that value creation based on collaboration in cross-sector partnership is influenced by partnership context that consists of macro and mezzo stimulating and limiting factors, characteristics of NGO and business organization, selection of a proper partner as well as formal and informal mechanisms of partnership governance.

Highlights

  • The development of the open market, intensive flows of information and ideas, the communication in real time, the information diffusion via social networks, intensive social changes and the process of globalization, inherently intractable and open-ended challenges such as global warming, poor access to water, pandemics encourage governmental institutions, business and non-governmental organizations to look for new mechanisms of interactions (Dentoni et al 2016; Yaziji, Doh 2009; Clarke, Fuller 2010)

  • Analyzed and generalized theoretical provisions of conception of relational governance and resources-based approach allow to state that cross-sector partnership is an emerging process covering uncertainty conditioned by the context, type of process, and relationships with a partner and results; it is a manifold process the development of which depends on partnership characteristics

  • Referring to the findings of qualitative research it has been determined that value creation based on collaboration in cross-sector partnership is influenced by partnership context that consists of macro and mezzo stimulating and limiting factors, characteristics of NGO and business organization, selection of a proper partner as well as formal and informal mechanisms of partnership governance

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Summary

Introduction

The development of the open market, intensive flows of information and ideas, the communication in real time, the information diffusion via social networks, intensive social changes and the process of globalization, inherently intractable and open-ended challenges such as global warming, poor access to water, pandemics encourage governmental institutions, business and non-governmental organizations to look for new mechanisms of interactions (Dentoni et al 2016; Yaziji, Doh 2009; Clarke, Fuller 2010). The creation of the collaborative value occurs in various forms (Seitanidi, Crane 2009; Sakarya et al 2012; Hankammer, Kleer 2018; Chesbrough et al 2018; Sroka, Szántó 2018) such as the usage of core competencies, resource transfer, knowledge exchange and access to new knowledge and networks, increased financial and technological resources, possibility to create and try innovative solutions, improved legitimacy, brand recognition, reputation, perception as a reliable partner, relationships with stakeholders, all of which can contribute to the increase of competitive advantage. This article reveals practices of the cross-sector partnership’s governance, enabling the collaborative value creation in the context of partnerships of NGOs and business organizations. In such a context the governance of cross-sector partnership is analyzed through two dimensions - at the levels organizations and partnerships including two interrelated aspects - formal (contractual) and informal (relational) governance mechanisms. Scientific methods such as semi-structured interviews, systematization and interpretation have been used for this research

Theoretical background of the research
Research methodology
Research results and discussion
Conclusions
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