Scaling the value creation capacity of non-profit organisations through an evolving partnering portfolio : learning from a case in practice

Date
2021-03
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH SUMMARY : This study is anchored in a theoretical domain that explores the potential of partnering as a strategy and process to improve the value creation capacity and sustainability of non-profit organisations. While partnering is not new to non-profit organisations, they mostly lack the resources, capacity and experience to scale their partnerships for long-term value creation in their own and their beneficiaries’ interest. These obstacles to partnering are well-known and frequently covered in literature, especially in relation to dyadic business–non-profit organisation partnership arrangements. What is lacking, however, is attention to partnering from a complex and multi-partner portfolio perspective, on one hand, and strategic advancement of such a portfolio to more mature levels of value creation, on the other. Learn to Earn, a South African non-profit organisation focusing on skills development and employment, was identified as an entity with multiple longstanding partnering arrangements involving entities from different sectors. As such, the non-profit organisation presented a unique opportunity for conducting an in-depth case study. Not only did the engagement with Learn to Earn produce insights into the dynamism involved in the development of a partnering portfolio, but it also emphasised the necessity of a strategic business model approach for scaling the value creation capacity of the partnering ecosystem as a whole. With the evidence collected from the research, three business model patterns, which had the potential to result in distinct resource configurations, namely philanthropic, transactional and synergistic, respectively creating value ‘for’, ‘from’, or ‘with’ its social mission, were identified. Of the various patterns, and despite being the most complex to manage, the synergistic pattern, where value is created ‘with’ the mission, was found to be best suited to potentially unlock strategically important resources and capacity from individuals and organisations representing different sectors of society. The value that accrues from the alliance of the three main partner types in the portfolio can assist to scale the capacity and enhance the social value contribution of a non-profit organisation, and that of its partners; and may also extend to third parties beyond its ecosystem. The business model canvas further facilitates strategic management of the dynamics and tensions inherent in creating value, and building and evolving a diverse portfolio of partners as a key asset to supplement and complement the existing resource base of a non-profit organisation. This empirical study contributes both theoretical and practical knowledge from the perspective of a non-profit organisation. The study concludes by suggesting that the evidence-based insights and the real-life examples described in this case can provide beneficial information for the evaluation of existing social change partnering practices and for the design of new solutions for non-profit organisations to ensure long-term sustainability through partnering.
AFRIKAANSE OPSOMMING : studie is geanker in 'n teoretiese domein wat die potensiaal van samewerking as 'n strategie en proses ondersoek om die waardeskeppingskapasiteit en volhoubaarheid van organisasies sonder winsbejag (OSWs) te verbeter. Hoewel 'n vennootskap vir OSWs niks nuut is nie, het hulle meestal nie die hulpbronne, die vermoë en die ervaring om hulle vennootskappe vir langtermyn waardeskepping in hul eie en hul begunstigdes se belang te laat gedy nie. Hierdie struikelblokke in die weg van samewerking is welbekend en word dikwels in literatuur behandel, veral met betrekking tot ooreenkomste vir onderlinge samewerking tussen sake-ondernemings en OSWs. Wat egter ontbreek, is die aandag enersyds aan 'n komplekse en multi-vennoot-portefeulje-perspektief en andersyds die strategiese vooruitgang van so 'n portefeulje tot meer volwasse vlakke van waardeskepping. Learn to Earn, 'n Suid-Afrikaanse organisasie sonder winsbejag, wat op vaardigheidsontwikkeling en indiensneming fokus, is geïdentifiseer as 'n entiteit met veelvuldige jarelange vennootskapsreëlings wat verskillende sektore betrek. As sodanig bied dié organisasie sonder winsbejag 'n unieke geleentheid om 'n in-diepte gevallestudie uit te voer. Nie net het die betrokkenheid met Learn to Earn insigte gebied in die dinamika wat by die ontwikkeling van 'n samewerkingsportefeulje betrokke is nie, maar dit het ook die noodsaaklikheid van 'n strategiese sakemodelbenadering benadruk om die waardeskeppingsvermoë van die ekostelsel-vennoot in sy geheel te laat gedy. Met die inligting wat die navorsing opgelewer het, is drie sakemodelpatrone geïdentifiseer met die potensiaal om verskillende hulpbronkonfigurasies te lewer, naamlik filantropies, transaksioneel en sinergisties, wat onderskeidelik waarde 'vir,' 'van' of 'met’ elk se onderlinge sosiale missie skep. Van die vermelde patrone, en ondanks die feit dat dit die mees komplekse is om te bestuur, blyk dit dat die sinergistiese patroon, waar waarde 'met' die missie geskep word, die geskikste is om moontlik strategies belangrike hulpbronne en kapasiteit te ontsluit van individue en organisasies wat verskillende sektore van die samelewing verteenwoordig. Die waarde wat uit die alliansie van die drie belangrikste vennootstipes in die portefeulje verkry word, kan help om die kapasiteit te laat gedy en die maatskaplike waardebydrae van 'n OSW en dié se vennote te verhoog – dit kan ook uitbrei na derde partye buite sy ekostelsel. Die sakemodelraamwerk vergemaklik vervolgens strategiese bestuur van die dinamika en spanning inherent aan die skep van waarde, en die opbou en ontwikkeling van 'n diverse portefeulje van vennote as 'n belangrike bate om die bestaande hulpbronbasis van 'n OSW te ondersteun en aan te vul. Hierdie empiriese studie lewer sowel teoretiese as praktiese kennis, beskou uit die perspektief van 'n OSW. Die studie word afgesluit deur voor te stel dat bewysgebaseerde insigte en die lewenswerklike voorbeelde wat hier gemeld word, voordelige inligting kan bied vir die evaluering van bestaande praktyke vir maatskaplike verandering en vir die skep van nuwe oplossings vir OSWs om langtermyn volhoubaarheid deur vennootskappe te verseker.
Description
Thesis (PhD)--Stellenbosch University, 2021.
Keywords
Nonprofit organizations -- Business models, Nonprofit organizations -- Industrial capacity, Nonprofit organizations -- South Africa -- Case studies, Strategic alliances (Business) -- South Africa, Social entrepreneurship -- South Africa, Value -- Social aspects -- South Africa, Value -- Economic aspects -- South Africa, UCTD
Citation