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Institutional isomorphism among nonprofits in cause marketing partnerships

Author

Listed:
  • Edgar Alan N. Rayo

    (University of Southeastern Philippines)

Abstract

Numerous cases of unsuccessful cause marketing partnerships are caused by nonprofits’ proclivity to modify their motive when pursuing optimal decisions. This study’s main goal is to determine if there exists a significant difference between nonprofit strategic decisions and motive under various game theoretic conditions. The researcher conducted a field experiment among supervisors and managers of nonprofit organizations in the Philippines. Results indicate that nonprofit strategic decisions in the final rounds of Prisoner’s Dilemma and Snowdrift Game have a significant difference with nonprofit motive. The findings explain why a nonprofit optimizes its gains but eventually losses its organizational goals and why it chooses to remain in partnership with a for-profit that has reduced its collaboration effort.

Suggested Citation

  • Edgar Alan N. Rayo, 2012. "Institutional isomorphism among nonprofits in cause marketing partnerships," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 15(46bis), pages 121-136, December.
    • Handle: RePEc:rej:journl:v:15:y:2012:i:46bis:p:121-136
    as

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    References listed on IDEAS

    as
    1. Smith,Vernon L., 2005. "Bargaining and Market Behavior," Cambridge Books, Cambridge University Press, number 9780521021487.
    2. Harrison Teresa D. & Lybecker Kristina M., 2005. "The Effect of the Nonprofit Motive on Hospital Competitive Behavior," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-17, May.
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    More about this item

    Keywords

    goal displacement; game theory; nonprofit motive; nonprofit strategy; strategic alliance;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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