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Does Cross-Sector Collaboration Lead to Higher Nonprofit Capacity?

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Michelle Shumate at Northwestern University
Michelle Shumate
Sophia Fu at Rutgers, The State University of New Jersey
Sophia Fu
Katherine R. Cooper at DePaul University
Katherine R. Cooper
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Cross-sector social partnership (CSSP) case-based theory and research have long argued that nonprofits that engage in more integrative and enduring cross-sector partnerships should increase their organizational capacity. By increasing their capacity, nonprofits increase their ability to contribute to systemic change. The current research investigates this claim in a large-scale empirical research study. In particular, this study examines whether nonprofits that have a greater number of integrated cross-sector partnerships have greater capacities for financial management, strategic planning, external communication, board leadership, mission orientation, and staff management than nonprofits that have other types of interorganizational relationships. Moreover, it examines whether the length of these partnerships is associated with better capacity. Hierarchical multiple regression analysis drawn from surveys of 452 nonprofit organizations suggests that cross-sector collaboration is not systematically related to increased capacity. However, the results suggest that more enduring relationships between government and nonprofit organizations that extend beyond funder–recipient relationships are related to greater strategic planning capacity. Implications for CSSP research are drawn from the results, especially those concerned with the outcomes of CSSPs.
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Vol.:(0123456789)
1 3
Journal of Business Ethics (2018) 150:385–399
https://doi.org/10.1007/s10551-018-3856-8
ORIGINAL PAPER
Does Cross‑Sector Collaboration Lead toHigher Nonprot Capacity?
MichelleShumate1· JiaweiSophiaFu1· KatherineR.Cooper1
Received: 1 August 2016 / Accepted: 25 March 2018 / Published online: 7 April 2018
© Springer Science+Business Media B.V., part of Springer Nature 2018
Abstract
Cross-sector social partnership (CSSP) case-based theory and research have long argued that nonprofits that engage in more
integrative and enduring cross-sector partnerships should increase their organizational capacity. By increasing their capacity,
nonprofits increase their ability to contribute to systemic change. The current research investigates this claim in a large-scale
empirical research study. In particular, this study examines whether nonprofits that have a greater number of integrated
cross-sector partnerships have greater capacities for financial management, strategic planning, external communication,
board leadership, mission orientation, and staff management than nonprofits that have other types of interorganizational
relationships. Moreover, it examines whether the length of these partnerships is associated with better capacity. Hierarchical
multiple regression analysis drawn from surveys of 452 nonprofit organizations suggests that cross-sector collaboration is not
systematically related to increased capacity. However, the results suggest that more enduring relationships between govern-
ment and nonprofit organizations that extend beyond funder–recipient relationships are related to greater strategic planning
capacity. Implications for CSSP research are drawn from the results, especially those concerned with the outcomes of CSSPs.
Keywords Capacity· Cross-sector social partnerships· Interorganizational network· Network portfolio· Nonprofit
organization
Abbreviation
CSSP Cross-sector social partnership
Introduction
Cross-sector social partnerships (CSSPs)—collaborative
arrangements between businesses, nonprofits, and govern-
ment agencies—are increasingly considered by corporate
nonprofit, and government leaders as a potential solution
to social issues and a mechanism to increase organizational
benefits (see C&E 2015; Le Pennec and Raufflet 2016).
The process of social, interorganizational collaboration
implies that two or more organizations share “information,
resources, activities, and capabilities” (Bryson etal. 2006,
p. 44). Through this sharing and interaction, individuals,
organizations, and society create value (Austin and Seitanidi
2012b). This paper responds to the special issue’s call for
proposals by addressing whether cross-sector collaboration
creates values for partners that enable them to contribute to
systemic change. Among cross-sector partners, the nonprofit
perspective is of particular interest because of the complex-
ity of social problems nonprofits are founded to address and
the resource constraints of the sector.
At the meso-level, the key assumption is that nonprofit
organizations and their partners will create value that
accrues to the participating organizations. Indeed, in their
systematic literature review of the field, Gray and Stites
(2013) note that three of the four motivations (i.e., legiti-
macy-oriented, competency-oriented, resource-oriented) for
entering CSSPs are related to gains that the organizations
hope to achieve, with secondary benefits to society accruing
through organizational betterment. In particular, according
to case research, one benefit of CSSPs for nonprofits is the
opportunity to make gains in their organizational capacity
(e.g., Le Pennec and Raufflet 2016; Seitanidi 2010).
The purpose of this research is to examine the empiri-
cal relationship between CSSPs and nonprofit capacity. In
* Michelle Shumate
shumate@northwestern.edu
Jiawei Sophia Fu
sophiafu@u.northwestern.edu
Katherine R. Cooper
katherine.cooper@northwestern.edu
1 Department ofCommunication Studies, School
ofCommunication, Northwestern University, 2240 Campus
Drive, Evanston, IL60208, USA
Content courtesy of Springer Nature, terms of use apply. Rights reserved.
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