Strategic Alliances: Managers’ Response Behaviour in Adverse Situations
Firms and non-government organisations (NGOs) have a high failure rate (50-70%) to build alliances due to their different objectives. The NGO wants to contribute to society, and the firm wants to make money. This failure prompted this research on alliances between firms and NGOs in adverse situations. This research investigates managers response behaviour in adverse situations. These new insights can contribute to a lower failure rate. Currently, little is known about managers’ response behaviour to these alliances in adverse situations. These adverse situations are negative events, which disrupt the alliance between the partners resulting in alliance instability. Recent studies show that the behaviour of managers in adverse situations differ. The behaviour of managers in adverse situation can increase and decrease the success of the partnership. Some studies indicate that when the partner gives a helping hand, it enhances the success of the partnership. Conversely, other studies show that when the partner reacts negatively, the partnership ends. The study measures the response behaviour of managers with seven different response strategies: exit, opportunism, aggressive voice, creative voice, considerate voice, patience, and neglect. The effect of investment and involvement on the response strategy is investigated. Most studies on these alliances used qualitative research. Therefore, this study uses a mixed- method approach to conduct this research. Managers of NGOs and firms are interviewed about their response behaviour in adverse situations. With a vignette study, students are asked about their response behaviour in adverse situations. The vignettes converge four different relational-based alliances: philanthropic alliances, transactional alliances, integrative alliances, and transnational alliances. These alliances differ from each other in their degree of investment and involvement. The author compares the outcomes to answer the research question: What is the response behaviour of managers in different relational-based alliances between firms and NGOs in an adverse situation?
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