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“Purpose: Collaborations and partnerships that span economic sectors heighten the complexity of decision-making processes and introduce challenges for structuring collective action. As hybrid organizations designed for cooperation, multi-sector partnerships involving firms from the private, public, and nonprofit industries are more likely to utilize a platform of open strategy than their single-sector counterparts. Through studying the decision-making process of multi-sector partnerships, the purpose of this paper is to suggest that the formative extra-organizational boundary conditions of these partnerships create fertile ground for a platform of open strategy.
Design/methodology/approach: This manuscript presents a thorough analysis of the literature regarding multi-sector partnerships and the construct of open strategy to consider the importance of goal interdependence and strategic openness in the strategic decision-making process. The combination of these research streams results in a theoretical model of open strategy to be validated in the multi-sector partnership context.
Findings: Partnerships that span multiple market sectors (multi-sector partnerships (MSPs)) are often founded on cooperation as opposed to competition and this fundamental distinction impacts organizational strategy and, more specifically, the manner in which strategic decisions are made. As proposed, the open strategy process model outlined in this work relies on goal interdependence, stakeholder legitimacy, participatory decision making, transparency, and inclusiveness as core components.”