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Arts-based cooperations between business and the arts create innovative solutions for companies by introducing artistic practices. Cooperations of this nature are predominantly prepared and implemented by intermediaries who act as “matchmakers” and bridge the cultural clash. The paper aims to discuss these issues.

For the present study on the function of such intermediaries, qualitative data material from interviews and case studies on arts-based cooperations was collected and analysed.

This paper analyses the results from an institutional economics perspective. By drawing on transaction cost theory and information economics, the findings are transformed into an intermediation theory of arts-based cooperations. The theory postulates that intermediaries are able to reduce transaction costs as well as the risks which are contingent on asymmetric information. Involving an intermediary produces cost advantages compared to direct contact between companies and artists.

The analysis illuminates an important but heretofore neglected aspect of arts-based initiatives thus providing an indication for their successful implementation.

Pina Bausch is considered one of the most influential choreographers in contemporary dance. She created a new dance language based on a groundbreaking form of joint artistic inquiry. As a leader, Pina Bausch transformed her company into a chosen family of diverse personalities whom she supported in the development of their individual artistic expressiveness. She encouraged her dancers to contribute to her signature style with inventiveness and authenticity. Her ability to integrate the dancers’ contributions into her pieces and bring them to the fore onstage makes Pina Bausch a prime example of creative leadership. While leveraging her company’s collective genius and international fame through boundless curiosity and artistic integrity, Pina Bausch balanced paradoxes of leading innovation. The essence of her leadership style points to the importance of curiosity, humanity, and embodiment in leader-follower relationships.