NGOs and the Creation of Value in Supply Chains(2017)
Non-governmental organizations (NGOs) often work with firms to facilitate supplier inclusion in the supply chain. Using a formal model, we examine how NGO interventions can alleviate market failures and improve supplier economic inclusion. We account for the specific goals of the NGO and the need to induce collaboration between firms and their suppliers. We show that NGO efforts depend non-linearly on NGO capability levels and the relative bargaining power among firms and suppliers.
We also show that more powerful firms might prefer to internalize NGO functions, while firms with lower bargaining power and higher investment requirements prefer to collaborate with NGOs. Finally, we study NGO-firms matching patterns and find that firms with higher bargaining power match with NGOs having stronger capabilities.
- Non-Governmental Organizations,
- Firm-NGO collaboration,
- Value creation
Publication DateWinter February, 2017
Citation InformationOlivier Chatain and Elena Plaksenkova. "NGOs and the Creation of Value in Supply Chains" (2017)
Available at: http://works.bepress.com/olivier_chatain/14/