Resource dependence patterns,goal change,and social value in nonprofit organizations: does goal change matter in nonprofit management?

Abstract

Abstract

Resource acquisition is an important factor for the survival and success of nonprofit organizations. Nonprofit organizations are not free from the demands of potential funders and they experience involuntary goal changes in competitive environments. This article investigates the relationships among resource dependence patterns (resource dependency, resource competitiveness, and resource diversity), goal change, and social value in nonprofit organizations. The findings suggest that competition for financial resources (resource competitiveness) is positively associated with goal change in nonprofit organizations. Goal change in an environment of high resource competitiveness has a negative effect on social value. On the other hand, the empirical findings show that a diversified or balanced revenue structure (high resource diversity) helps nonprofit organizations to maintain their social value.

Points for practitioners

This study shows that frequent goal change can damage social value in the nonprofit sector. This can be interpreted as indicating that the involvement of external stakeholders makes it difficult to attain social value in that the demands of potential donors are a major cause of goal change in nonprofit organizations. To alleviate this problem, a nonprofit organization should try to reduce its dependency on one or a few financial resources for its autonomy and social value. In the mid- and long-term view, nonprofit organizations should enhance their financial independence in order to ensure their survival and success, as well as to improve their social value.