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Multi-layer agency problems in a non-profit and for-profit collaboration: a case study of a delicatessen product in support of a minority

In: International Food and Agribusiness Management Review
Authors:
Meike Rombach Research Associate, Chair Group of Economics of Horticulture and Landscaping, School of Management and School of Life Sciences, Technical University of Munich, Alte Akademie 16, 85354 Freising, Germany.

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Lisa Koehl Graduate Student, Chair Group of Economics of Horticulture and Landscaping, School of Management and School of Life Sciences, Technical University of Munich, Alte Akademie 16, 85354 Freising, Germany.

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Vera Bitsch Professor, Chair Group of Economics of Horticulture and Landscaping, School of Management and School of Life Sciences, Technical University of Munich, Alte Akademie 16, 85354 Freising, Germany.

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The study investigated the collaboration between a non-profit and a for-profit organization and evaluated the benefits and drawbacks of the collaboration for the non-profit partner. The non-profit partner is a charitable organization that supports an ethnic minority in one of the least economically affluent European countries. The collaboration stemmed from a project, in which members of the minority cultivated and processed a delicatessen product for the market in more affluent European countries. The collaboration did not succeed to fully produce the desired results. It was negatively affected by inadequate communication, the absence of meta-goals, as well as classical and multi-level agency problems. In part due to the inexperience of both partners with such collaborations, the for-profit partner seems to have taken hidden actions. These actions did not contribute to the project goals, respectively jeopardized the goals and reputation of the non-profit partner.

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