Legitimacy, Board Involvement, and Resource Competitiveness: Drivers of NGO Revenue Diversification

Revenue diversification, which generates resources from different streams and an increased number of sources, has been highly recommended as an active strategy to maintain revenue stability. To help NGOs to strategically improve or maintain revenue diversification, we identified managerial and envir...

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Bibliographic Details
Published in:Voluntas (Manchester, England) England), 2018-12, Vol.29 (6), p.1176-1189
Main Authors: Zhu, Jiangang, Ye, Shihua, Liu, Yifei
Format: Article
Language:English
Subjects:
Competition
Competitiveness
Density
Diversification
Environmental aspects
Legitimacy
NGOs
Nongovernmental organizations
Original Paper
Participation
Political Science
Revenue
Social Policy
Social Sciences
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Summary:Revenue diversification, which generates resources from different streams and an increased number of sources, has been highly recommended as an active strategy to maintain revenue stability. To help NGOs to strategically improve or maintain revenue diversification, we identified managerial and environmental drivers of revenue diversification. Using a national sample of 429 Chinese grassroots NGOs, we investigated the extent to which organizational legitimacy, board involvement, and resource competitiveness influence organizational revenue diversification. Our findings reveal that managerial factors, including organizational legitimacy and board involvement, could increase organizational revenue diversification in terms of the organizational revenue diversification index (HHI) and the number of revenue sources. Regarding environmental factors, regional organizational density may exert a negative influence, whereas revenue diversification could improve with increasing regional GDP.
ISSN:0957-8765
1573-7888
DOI:10.1007/s11266-018-0044-5