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Institutional isomorphism among nonprofits in cause marketing partnerships

Author(s): Edgar Alan N. Rayo

Journal: The Romanian Economic Journal
ISSN 1454-4296

Volume: XV;
Issue: 46 bis;
Start page: 121;
Date: 2012;
Original page

Keywords: goal displacement | game theory | nonprofit motive | nonprofit strategy | strategic alliance

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.
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