A total eclipse of the heart: compensation strategies in entrepreneurial nonprofits

Abhisekh Ghosh Moulick, Kostas Alexiou, Elena Dowin Kennedy and Denise Linda Parris

Journal of Business Venturing, 2020, vol. 35, issue 4

Abstract: We examine how shifting resource dependencies influence compensation strategy during commercial transitions within entrepreneurial nonprofits. Analyzing a longitudinal sample of 4732 organizations, we show how compensation strategies shift non-linearly as nonprofits transition from contributed resource dependence to market-based resource dependence. Dynamic quadratic models unveil a dual threshold of commercialization concerning this transition. Nonprofits at moderate stages of commercialization contend with competing dependencies from both contributed and market-based sources, resulting in a decrease in compensation spending and an increase in part-time employment. At higher stages, contributed resource dependence is eclipsed by market-based dependence, reflected in increasing compensation spending and full-time employment.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbvent:v:35:y:2020:i:4:s0883902618305081

DOI: 10.1016/j.jbusvent.2019.105950

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