Cross-sector segmentation: A framework for collaborative alliances between nonprofit and for-profit organizations

This study examined how market segmentation strategy can assist nonprofit organizations to identify potential corporate partners, establish collaborative alliances, and secure new sources of capital. Recent economic concerns and increases in competition have seriously affected the nonprofit\u27s business environment. Therefore, a proactive approach is essential, so nonprofits can successfully secure desperately needed capital and continue to provide for those less fortunate. The study seeks a better understanding of the construct of alliance formation. Existing literature on alliances mostly focused on the nature of alliances; much less has been written about characteristics of alliance partners. Based on limited empirical evidence, this study integrated partner and partnership characteristics to develop a comprehensive theory of alliances. The research was conducted with the assistance and cooperation of several nonprofit organizations located in the tri-county area of South Florida. Participating nonprofit organizations were surveyed using several scales adapted from extant literature. Multiple regression technique, specifically stepwise regression was utilized to examine the hypothesized relationships between the dependent and independent (4) variables. Results indicated that organizational memory, governance, and firmographics were correlated to alliance formation and significant. However, the correlation between organizational culture and alliance formation was weak and not significant, despite extant literature review to the contrary. Further research is recommended to explicate causes for this lack of strength between organizational culture and alliance formation