Why alliances in the social economy succeed or fail

For social economy entities, such as cooperatives and nonprofits, partnerships are a vehicle for growth: they enable them to develop their social mission without compromising their identity or control.

At times of profound change, the ability to work together can determine these organizations’ survival.

The social economy accounts for around 10% of the economy in countries such as Spain and France. One way the sector promotes itself is through alliances, which offer two fundamental advantages:

• They facilitate access to resources and areas of work that would otherwise be hard to access.
• They can improve performance, recognition and positioning. In short, they allow partners to grow and become more competitive.

This was highlighted in a 2022 report on how alliances strengthen the social economy by IESE professor Africa Ariño, holder of the Joaquim Molins Figueras Chair of Strategic Alliances. Her findings were based on interviews with leaders of the sector in Spain, as well as with the president of the Spanish Business Confederation of the Social Economy (CEPES).

Identify conflicts in third-sector alliances

Despite the advantages, partners can face difficulties when strategic, organizational, operational and human differences collide.

• Strategic conflicts. Alliances work better when partner goals are compatible. If private interests carry more weight for one or both partners, tensions will arise. Conflicts can also arise when partners have different ideas about what each one should contribute. Before entering into an alliance, it’s important to define roles in terms of strategic goals, who does what, and shared vision.
• Organizational conflicts. These arise from differences in organizational structure, size and culture. What’s needed to overcome these differences is an understanding of why the partners act as they do.
• Operational conflicts. These arise when the resources committed to the alliance are not fully compatible. Agree on the minimum requirements for working together, and decide which of your procedures may need to be adjusted.
• Human conflicts. Lack of trust is a prime source of tension in partnerships. Try to create an environment where partners feel safe sharing information, even when it’s sensitive. Of course, there should be some level of trust from the outset.

Why some strategic alliances succeed and others fail

These ideas were developed further in a 2025 study on third-sector alliances in Catalonia. Ariño and her co-authors analyzed over 50 experiences to identify what distinguishes alliances that thrive from those that fail to achieve their objectives.