Value Creation in Sustainability-Oriented Cross-Sector Partnerships in Politically Complex Institutional Contexts

Abstract

Business has evolved into a formidable transnational actor transcending cultural, political and societal boundaries over the last three decades. Examining business models through the prism of relationships and interdependencies reveals the intricacies of its operations and stakeholder interactions as well as the complex process of collaborative value creation. A system-level approach to understanding business models, particularly through Cross-Sector Partnerships (CSPs), becomes crucial due to the embeddedness of companies in value chains, stakeholder networks and inter-organizational collaborations. Further, such collaborative models are significantly influenced by the contexts within which they operate. This research adopts a theoretical lens of institutional logics, which shape beliefs and practices within organizations, and explores its interplay with the value creation process in CSPs operating in authoritarian states like China and Vietnam. While previous research has examined the influence of market and civil society logics, a gap remains in understanding the value creation perspective in authoritarian contexts. The research employs multiple case studies within the textile industry, and seeks to answer the guiding question: How can cross-sector partnerships for sustainability between businesses and civil society organisations create value in authoritarian institutional contexts? The significance of this research lies in its potential to unveil the process of value creation through CSPs in authoritarian states, contributing theoretical insights and practical guidance for multinational corporations operating in politically sensitive contexts. The findings promise to enrich our understanding of CSP dynamics and provide valuable guidance for optimizing such partnerships in challenging political terrains.