Resource dependence patterns, goal change, and social value in nonprofit organizations: does goal change matter in nonprofit management?
| Author | JungWook Seo |
| Published date | 01 June 2020 |
| Date | 01 June 2020 |
| DOI | http://doi.org/10.1177/0020852318778782 |
| Subject Matter | Articles |
Article
International
Review of
Administrative
Sciences
Resource dependence
patterns, goal change,
and social value in
nonprofit organizations:
does goal
change matter in
nonprofit management?
JungWook Seo
Daegu University, South Korea
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 competi-
tion 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 stake-
holders makes it difficult to attain social value in that the demands of potential donors
Corresponding author:
JungWook Seo, Daegu University, Room 1120, Research Complex, 201 Daegudaero, Jilyang, Gyeongsan,
Gyeongbuk 38453, South Korea.
Email: gomsense@gmail.com
International Review of Administrative
Sciences
2020, Vol. 86(2) 368–387
!The Author(s) 2018
Article reuse guidelines:
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DOI: 10.1177/0020852318778782
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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.
Keywords
goal change, nonprofit management, nonprofit organizations, resource dependence
patterns, social value
Introduction
Today, organizations struggle to maintain their success solely by improving the
efficiency of their internal management. Previous studies have indicated that
organizations should have the ability to acquire valued resources in order to
attain organizational goals and to boost organizational functionality (Yuchtman
and Seashore, 1967). In particular, the dependence on the external environment is
vital to the success and continuation of nonprofit organizations (NPOs). Many
NPOs are likely to show relative weak fiscal independence because their activities
and priorities are primarily directed at realizing public and social values rather
than making profit. Many NPOs acquire the needed resources from external
resource providers such as individuals, parent NPOs, corporations, and
governments.
Currently, citizens ask NPOs to show a high level of accountability and more
visible performance. Clear, measurable, and consistent organizational goals may
help NPOs to boost their management and performance. However, it is not easy
for NPOs to have clear, measurable, and consistent goals due to the following
reasons. First, NPOs pursue social and economic values simultaneously, which can
render organizational goals vague and complex. Second, the environmental con-
text can influence organizational goal-setting in NPOs. Many NPOs show a heavy
dependency on external resource providers and stakeholders from both the public
and private sectors.
Resource acquisition is closely associated with the survival, development, and
success of NPOs. Diverse internal managerial factors are important, but obtaining
available resources and their appropriate utilization are also important for improv-
ing organizational efficiency and effectiveness. Obtaining resources can affect the
change, setting, and achievement of goals and mission in NPOs. Many NPOs
depend on external stakeholders to obtain the needed resources. NPOs offer gen-
eral citizens public goods and services with or on behalf of the public sector.
Realizing social value by doing good business is the basic reason for NPOs’ exis-
tence. Contemporary society requires NPOs to not only do good business, but also
Seo 369
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