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Unpublished Paper
NGOs and the Creation of Value in Supply Chains
(2017)
  • Olivier Chatain
  • Elena Plaksenkova, HEC Paris
Abstract
Non-governmental organizations (NGOs) often work with firms to facilitate the economic inclusion of the firms' suppliers through practice improvements. Using a formal model, we examine how such NGO interventions can alleviate market failures and increase supplier economic inclusion. We account for the specific goals of the NGO and the need to induce collaboration between firms and their suppliers. We analyze the NGO’s intervention level and show how it depends on the NGO's capabilities and the relative bargaining power among firms and suppliers. Our formal model offers testable hypotheses about NGO and firm behavior. In particular, it suggests that powerful firms are expected to match with more efficient NGOs due to sample selection and matching incentives.
Keywords
  • NGO,
  • Non-Governmental Organizations,
  • Nonprofit,
  • Firm-NGO collaboration,
  • Value creation
Publication Date
Winter February, 2017
Citation Information
Olivier Chatain and Elena Plaksenkova. "NGOs and the Creation of Value in Supply Chains" (2017)
Available at: http://works.bepress.com/olivier_chatain/14/