Despite voluntary failure theory (VFT)’s foundational role in public and nonprofit management scholarship, we do not know how it is used and evaluated. Our systematic literature review finds that scholars’ use of VFT centers on descriptive purposes, rather than providing theoretical propositions about the causes and consequences of government support to nonprofit organizations. Assessment of voluntary failure has also gone beyond the four types articulated by Salamon. We conclude by proposing a future research agenda centered on elucidating testable hypotheses, articulating the focal levels of analysis, and orienting voluntary failure by creating a broad set of public values.
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