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

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  • Gras, David
  • Mendoza-Abarca, Karla I.

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.

Suggested Citation

  • Gras, David & Mendoza-Abarca, Karla I., 2014. "Risky business? The survival implications of exploiting commercial opportunities by nonprofits," Journal of Business Venturing, Elsevier, vol. 29(3), pages 392-404.
    • Handle: RePEc:eee:jbvent:v:29:y:2014:i:3:p:392-404
    DOI: 10.1016/j.jbusvent.2013.05.003
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    References listed on IDEAS

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