Resource-Based View on Cross-Sector Alliances: The Effects of NGO Partner's Resources on CSR Program Performance

This study investigates the relationship between NGO partner’s resources and CSR program performance because recent research trend does not fully explain the reality of CSR by ignoring the increasing cross-sector alliances between firms and NGOs for CSR. This article develops a research model based on resource-based view and empirically examines the effects of NGO partner’s resources on CSR program performance. In addition, this article explores the role of resource complementarity between firms and NGOs in implementing CSR. We conducted face-to-face surveys with CSR staff from 21 corporations and had additional interviews with 17 CSR staff. Finally, we obtained a sample of 104 CSR programs and tested the hypotheses with regression analysis. Results indicate that resources of NGO partners, especially knowledge and reputation, significantly affect CSR program performance. The more knowledge NGO partners possess, the greater CSR program performance firms achieve. Reputation of NGO partners is also positively related with CSR performance. This study supports that knowledge complementarity plays a moderating role in the relationship between NGO partner’s resources and CSR program performance. Our findings reveal more clearer picture on CSR activities in two ways. First, this study explains the motivation of cross-sector alliances in the context of CSR from firms’ perspective. Second, this paper suggests that more strategic approach to partners’ resources should be required for successful cross-sector alliances, specially in cooperative partner selection processes.