MNCs and local cross-sector partnerships: The case of a smarter Baltic Sea

Abstract

Although cross-sector partnerships (XSPs) between multinational corporations (MNCs), governments and non-profit organizations are increasingly used to solve local problems and build responsible business, they have received limited attention in international business research. Because XSPs are vulnerable to conflicts and pose specific demands for subsidiary managers, it is critical to understand the integration mechanisms of XSPs that enhance their success. We study managerial sensemaking in an XSP formed to improve the environmental state of the Baltic Sea. Drawing from a cross-disciplinary literature review and insights from a case study we identify three kinds of integration mechanisms: resource mechanisms, ideational and social mechanisms, and organizational mechanisms. Our findings further imply that managerial “bricolage”, i.e. strategically combining resources at hand, is critical in enacting the integration mechanisms. The findings help to understand how integration and success of MNCs’ local partnerships may be increased.