Analysis On Risks In Cross-sector Alliances Of Corporations & NPOs From A Game Theory Perspective

Under the situation that the government reduces input and the public requires more, the corporations between enterprises and non-profit organizations (NPOs) are increasingly active. Though domestic studies on cross-sector alliances are gradually increasing, they still lag far behind the realities'needs.This paper summarized the existing study literatures, then referred to enterprise strategic alliance risk management methods, analyzed the "Game Risk" in cross-sector alliance between enterprises and NPOs using game theory. The analyses were carried out following this route:"alliance classification" "game analysis"-"game risk analysis"-"risk control"According to dependence on the outside, the cross-sector alliances were divided into two types:closed and open. Different types of game relationships existed in different cross-sector alliances.Then the paper discovered the game relationships between enterprises and NPOs in the cross-sector alliances were the reasons which led to cross-sector alliance risks.Different game relationships in cross-sector alliances were analyzed and the results indicated that closed alliances would suffer from inherent risk and the risk of abuse, open alliance would be challenged by internal coordination risk and external dependencies risk. Adverse selection risk, moral hazard and speculation risk were widely existed in the two types of alliance. The paper also put forward the preventive measures of game risks from enterprise, NPO and government's angles.Based on theoretical analysis, this paper selected the typical case of cross-sector alliance between enterprises and NPOs-Xi'an BMW lottery events. The case study had high consistency with the paper's theoretical analysis, providing practical support for theory study. Finally, considered the development environment for cross-sector alliances between enterprises and NPOS in Chian, the paper proposed the following suggestions:establishing market information openness system, constructing alliance value evaluation system, strengthening technology spillover protection and perfecting market oversight and accountability mechanism. The innovation of this paper lied in three aspects:(1)The paper classified cross-sector alliances between enterprise and NPOs from a new perspective and the studied alliance game relations and the cross-sector alliance risks based on the new classification;(2)The paper used the method of game theory from economics research to study administration problems, theoretically supported the paper's research conclusions strongly. It was a new attempt.(3)The paper focused on cross-sector alliances risk study, analyzed the risks led to the alliance by game relationships between enterprises and NPOs, and put forward corresponding countermeasures. The paper made useful supplements to existing researches. IV...