Relationships & Partnerships of Stakeholders

Question 1

Definition of relationships

Answer 1

2+ agencies enter into an agreement to work with each other along a continuum of transactions from pure transactions to total integration

Question 2

Definition of partnerships

Answer 2

2+ agencies move beyond transactions & enter into agreement to work together to achieve mutual outcomes that could not be achieved at transactional level alone”
- In this context, agreement is explicitly understood to be some form of legal or quasi-legal framework

Question 3

Types of sectors

Answer 3

private, public, non-profit

Question 4

Types of organizations

Answer 4

education, social service, government agencies, community orgs, health services, youth orgs, adaptive and therapeutic programs, business, media, sports programs, etc

Question 5

Partnerships

Answer 5

• Claims that inter-organizational partnerships are beneficial, yet…
• Failure rate in joint ventures is 50-70%
• Theories on partnerships helpful, but inadequate to capture complexities

Question 6

How do we understand partnerships?

Answer 6

Economic theories:
- transactions costs
- resource dependence
- strategic choices
Behavioural theories:
- stakeholder theories
- organizational learning
- institutional learning

Question 7

Transactional Cost Economics Theory

Answer 7

• Efficiency by trying to minimize production & transaction costs in an economic exchange
• Reduce uncertainty of market failure through reduced costs
  Ex. Cost of looking for a supplier of a specialized part or service

Question 8

Resource Dependence Theory

Answer 8

• All organizations exchange resources in open systems in an attempt to consolidate power, or minimize dependence on other organizations.
• Increased control over resources or fill need for resources
• Assumes all firms are dependent on resources external to the organization.
  Ex. Timber in BC, Specialized skills, production inputs

Question 9

Strategic Choice (Game Theory)

Answer 9

• Study of factors to increase competitiveness
• Cost-benefit approach, e.g., decrease competition
  Ex. Maximize revenue and/or reduce costs, reduce competition, OPEC

Question 10

Stakeholder Theory

Answer 10

• Web of people and organizations considered as having legitimate claims
• Align own interests with those of the stakeholders
  Ex. IOC

Question 11

Organizational Learning Theory

Answer 11

o Processes that lead to organizational learning
- Recognize value, assimilate & apply new knowledge to increase competencies & value
- Adaptation
Ex. Apple and Google (Mapping)

Question 12

Institutional Theory

Answer 12

• Considers the processes by which structures, including schemas, rules, norms, and routines, become established as authoritative guidelines for social behavior
• Imposed pressure on organizations to appear legitimate & conform to social norms
• Think “Intel” decal on low-end laptop!
  Ex. Fair Trade, Organic, FIFA

Question 13

Potential Advantages of Inter-Organizational Relationships

Answer 13

• Gain access to resources
• Economies of scale
• Risk & cost sharing
• Access to other markets (foreign)
• Product/service development
• Learning
• Speed to market
• Flexibility
• Collective lobbying
• Neutralize/block competitors

Question 14

Potential Disadvantages of Inter-Organizational Relationships

Answer 14

• Loss of proprietary information
• Management complexities
• Financial & organizational risks
• Risk becoming dependent
• Partial loss of decision-making
• Possible ‘culture clash’
• Loss of organizational flexibility
• Antitrust implications

Question 15

Inter-Organizational Relationship Failure

Answer 15

Key influences of unsuccessful relationships

• Poor communication
• Incompatible management styles
• Lack of commitment
• Staff turnover
• Lack of satisfaction