Towards a Typology of Governance Mechanisms in Cross-sector Partnerships Based on Multiple Agency Theory

We use the multiple agency theory to explain the governance issues in cross-sector partnerships. In doing so, we identify five typologies of cross-sector partnerships, each distinct from one another in terms of the governance structure. We also discuss three problems that occur in these relationships, mainly differences in institutional logic, temporal differences, and free-riding and opportunistic behaviour, as well as how these problems affect each type of cross-sector partnership. These findings make several contributions to the literature. First, this is one of the few studies to use agency theory to examine the governance structures in cross-sector partnerships. Second, our study further contributes to solidifying our understanding of the agency problems arising in such partnerships. Lastly, our study explains that these problems do not affect each type in the same way, leading us to offer more nuanced implications.