University of Innsbruck, Austria

Strategies alliances and corporate sustainability, a signaling approach

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Abstract

This paper proposes that strategic alliances can play a crucial role in the sustainable development of a focal firm. One main proposition is that partnering with organizations with high sustainability orientation plays an influential role in shaping a focal firm’s legitimacy of sustainability. Stakeholders give increasing attention to sustainability, thereby with whom firms go into the partnership, becomes a vital factor for stakeholders’ interpretation in the context of the legitimacy of sustainability. I build on signaling theoretical framework to shed light on the complex process of legitimacy formation. First, legitimacy of sustainability is a socially constructed phenomenon, driven by different interpretation patterns of various stakeholders. Second, from the focal firm’s standpoint, selecting the 'right' partner can be challenging and complex due to the uncertainty and difficulties in evaluating the quality of (potential) partners dealing with sustainability.

Biography

I am a Ph.D. student at University of Innsbruck, Austria. My research focuses on corporate sustainability, strategic management, and family Businesses.