Nonprofit organizations shaping the market of supplies

Journal article, 2012

The role of not-for-profit organizations (NPOs) and their relationships with various partners within humanitarian aid networks have hitherto been researched only to a limited extent. Formation of interdependencies between actors in humanitarian networks and the implications on societal outcomes require more research. In the nonprofit-for profit domain the former organizations are usually seen as the weaker actors. The relative power of for-profit actors has given them more control on the market with implications such as higher prices and supply shortages. However, different initiatives from the nonprofit sector in recent years show how NPOs are reshaping these relations. The aim of this paper is to explore the dominance dynamics and the degree of influence NPOs have on their supply market in their aspiration for better availability, quality, pricing, and innovation of strategic essential supplies within the humanitarian aid sector. Conclusions are drawn by explaining changes in the market through the NPO initiatives, by iterating the findings from practice to the constructs of Resource Dependency Theory.