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Managing strategic alliances through a community‐enabled balanced scorecard: The case of Merck Ltd, Thailand

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  • Erik G. Hansen
  • Martin Sextl
  • Ralf Reichwald

Abstract

Corporations often engage in corporate community involvement (CCI) in order to improve the social and environmental conditions in their local communities. Firms also become involved in strategic alliances with non‐governmental organizations (NGOs) to guarantee that the initiatives are meaningful. At the same time, such alliances strengthen business impacts resulting from employee and customer proximity to CCI, which is defined as the awareness of, perceived credibility of, and active involvement in CCI activities. Though these effects are strategically relevant, strategic alliances for CCI mostly remain separate from corporate strategy. We propose the community‐enabled balanced scorecard (CBSC) as a conceptual framework for integrating both community and business goals in the strategic management of the firm. We use a case study research approach covering qualitative interviews and action research at Merck Ltd, Thailand, a subsidiary of a large German chemical and pharmaceutical corporation, to demonstrate the practicability of the framework. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.

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  • Erik G. Hansen & Martin Sextl & Ralf Reichwald, 2010. "Managing strategic alliances through a community‐enabled balanced scorecard: The case of Merck Ltd, Thailand," Business Strategy and the Environment, Wiley Blackwell, vol. 19(6), pages 387-399, September.
    • Handle: RePEc:bla:bstrat:v:19:y:2010:i:6:p:387-399
    DOI: 10.1002/bse.689
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    6. Regina F. Bento & Lasse Mertins & Lourdes F. White, 2017. "Ideology and the Balanced Scorecard: An Empirical Exploration of the Tension Between Shareholder Value Maximization and Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 142(4), pages 769-789, June.
    7. Chiara Mio & Antonio Costantini & Silvia Panfilo, 2022. "Performance measurement tools for sustainable business: A systematic literature review on the sustainability balanced scorecard use," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(2), pages 367-384, March.
    8. Blanca de-Miguel-Molina & Vicente Chirivella-González & Beatriz García-Ortega, 2016. "Corporate philanthropy and community involvement. Analysing companies from France, Germany, the Netherlands and Spain," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(6), pages 2741-2766, November.
    9. Carmen Talavera & Joan R. Sanchis, 2020. "Alliances between For-Profit and Non-Profit Organizations as an Instrument to Implement the Economy for the Common Good," Sustainability, MDPI, vol. 12(22), pages 1-22, November.
    10. Uwafiokun Idemudia, 2017. "Environmental Business–NGO Partnerships in Nigeria: Issues and Prospects," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 265-276, February.
    11. João Nuno Morais Lopes & Luís Farinha, 2018. "Measuring the Performance of Innovation and Entrepreneurship Networks," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(2), pages 402-423, June.
    12. Madureira Simaens, Ana, 2015. "Responding to complexity : A systems approach to strategy and interorganizational networks in the context of third sector organizations," Other publications TiSEM 84077bdb-a62a-478f-ba4e-4, Tilburg University, School of Economics and Management.
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