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Determinants of non-profit commercialism. Resource deficits, institutional pressures or organizational contingencies?

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ABSTRACT Resource competition is assumed to encourage commercial behaviour by publically funded non-profit organizations (NPOs). However, this widespread assumption falls short as empirical findings remain equivocal. In this study, we… Click to show full abstract

ABSTRACT Resource competition is assumed to encourage commercial behaviour by publically funded non-profit organizations (NPOs). However, this widespread assumption falls short as empirical findings remain equivocal. In this study, we theorize that non-profit commercialism can indeed emerge from resource deficits but also from institutional pressures and organizational contingencies. Using logistic regression analyses on two-wave survey data of Flemish NPOs, we explain the presence, intensity and nature of non-profit commercialism. While resource dependency indeed explains the presence and extent of non-profit commercialism, we find that institutional pressures and organizational contingencies also have a role to play.

Keywords: profit; resource; non profit; profit commercialism; institutional pressures

Journal Title: Public Management Review
Year Published: 2020

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