This paper investigates the process through which firms and non-profit organizations reconcile divergent worldviews in the development of firm–NPO partnerships. Drawing on data from two long-lived firm–NPO partnerships, this study suggests that the dynamics of reconciliation in situations of institutional complexity can be better understood by examining how firms and NPOs manage the interplay of both market and social logics in an inter-organizational context. We have found that during the initial stages of collaboration, partners manage differences by engaging in joint (...) pilot projects and by demonstrating management’s commitment to the partnerships. Subsequently, after firms and NPOs sign a formal partnership agreement, they seek to maintain a sustainable mode of interaction by adopting three distinct mechanisms for managing tensions arising from the partnership: negotiating activity scope, monitoring and learning, and modifying organizational practices. Our research findings contribute to the literature on cross-sector partnership and institutional complexity by highlighting the means by which organizations reduce tensions associated with divergent institutional logics and maintain successful partnerships. (shrink)

This study examines the process of knowledge transfer between a pair of social enterprises, organizations that are embedded in competing social and economic logics. Drawing on a longitudinal case study of the interaction between social enterprises operating in emerging economy settings, it uncovers factors which influence the transfer of a social innovation from a dense, population-rich setting to one where beneficiaries are geographically dispersed and the costs of service delivery are correspondingly elevated. Evidence from the case study suggests that institutional (...) bricolage—the crafting of improvised solutions in resource-constrained settings—can serve as potent driving force in driving innovation transfer, and that this process of re-combining available resources may be facilitated by the extent to which the values between partner social enterprises are aligned. With such alignment, social enterprise partners may be able to increase trust, develop a smoother knowledge-transfer process, and find practical solutions which facilitate the transfer of life-enhancing social innovations to neglected rural settings. (shrink)