Risky business? The survival implications of exploiting commercial opportunities by nonprofits

David Gras and Karla I. Mendoza-Abarca

Journal of Business Venturing, 2014, vol. 29, issue 3, 392-404

Abstract: Prior research is equivocal as to the performance implications of exploiting market-based opportunities by nonprofit organizations. We investigate an under-addressed measure of performance in this literature: organizational survival. Drawing upon resource dependence theory, we argue that performance is largely dependent upon the extent to which nonprofits focus on market-based opportunities. Through analysis of the population of Canadian charities, we find support for a U-shaped relationship indicating that low to moderate levels of market-based income decrease the likelihood of firm exit, whereas high levels increase this likelihood.

Keywords: Social entrepreneurship; Resource dependence theory; Nonprofit; Opportunity exploitation (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbvent:v:29:y:2014:i:3:p:392-404

DOI: 10.1016/j.jbusvent.2013.05.003

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