Funding source, board involvement techniques, and financial vulnerability in nonprofit organizations: A test of resource dependence
Version of Record online: 12 DEC 2005
© Wiley Periodicals, Inc.
Nonprofit Management and Leadership
Volume 16, Issue 2, pages 171–190, Winter 2005
How to Cite
Hodge, M. M. and Piccolo, R. F. (2005), Funding source, board involvement techniques, and financial vulnerability in nonprofit organizations: A test of resource dependence. Nonprofit Management and Leadership, 16: 171–190. doi: 10.1002/nml.99
- Issue online: 12 DEC 2005
- Version of Record online: 12 DEC 2005
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.