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Funding Source, Board Involvement Techniques, and Financial Vulnerability in Nonprofit Organizations: A Test of Resource Dependence
Abstract
The study examined here tested a resource dependence view of the
organization on a sample of nonprofit social service agencies. Results
indicated that CEOs of privately funded nonprofit agencies were more
likely to use board involvement techniques than CEOs of
government-funded or commercially supported organizations. In
addition, privately funded agencies were less vulnerable to economic
shock than government or commercially funded agencies, and funding
source explained incremental variance in board involvement and
vulnerability beyond characteristics of the organization and board.
These results provide support for assertions of resource dependence
theory and suggest that a CEO's strategic engagement with an
organization's board depends in part on the nature and concentration
of the organization's resources. (PsycINFO Database Record (c) 2007
APA, all rights reserved) (Journal abstract)
Journal
(Winter 2005)
vol16
no2
pages171-190
Categories
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Nonprofit Management
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Financial Planning and Management