Purpose Driven Partnerships: The Nexus of Purpose and Strategic Alliances

Abstract

This dissertation utilizes an abductive mixed methods study to assess, unpack, and extend the theory of purpose. Although prior literature primarily focuses on the outcomes of high purpose framing, this study specifically addresses how one high-purpose, exemplar firm engaged in strategic alliances as a means for formalizing and realizing its purpose. Concomitantly, although the strategic alliance literature typically focuses on the economic and competitive advantages of strategic alliances, this study further introduces the concept of the purpose driven partnership (PDP) to incorporate the more relational and social dimensions of purpose within strategic alliances. Data was collected via 22 interviews with senior executives of the high-purpose firm in combination with 1,266 post-engagement surveys completed over a 5-year period by senior executives from 622 firms in 25 countries and 28 industries. Supplemental data included engagement financials and engagement duration. The results of this study revealed three PDP types—Sustain & Support, Analysis & Strategy, and Change & Transformation—as unique pathways for the firm to formalize its purpose. Next, qualitative analysis of the survey data revealed the presence of six consumer tensions—solution clarity, strategic focus, knowledge contribution, resource embeddedness, interpersonal style, and functional autonomy—that affected how value was assessed by client firms. These value assessments resulted in a subsequent decision of whether to continue the partnership and to consume the value created by the firm—an ongoing process termed as value consumption. As a result of value consumption, consumers described both positive and negative externalities referred to as value gain and value loss. Additionally, the net difference of these outcomes, referred to as net value gain, became predictive of whether client firms would continue to engage with the firm in the future, thereby increasing the firm’s long-term value appropriation. Finally, this dissertation provides important theoretical contributions to the literatures on purpose, strategic alliances, demand-side value creation, and entrepreneurship as well as a foundation for future research.