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Date

2020-07

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Creative Commons
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-NoDerivatives 4.0 International

We examine how shifting resource dependencies influence compensation strategy during commercial transitions within entrepreneurial nonprofits. Analyzing a longitudinal sample of 4732 organizations, we show how compensation strategies shift non-linearly as nonprofits transition from contributed resource dependence to market-based resource dependence. Dynamic quadratic models unveil a dual threshold of commercialization concerning this transition. Nonprofits at moderate stages of commercialization contend with competing dependencies from both contributed and market-based sources, resulting in a decrease in compensation spending and an increase in part-time employment. At higher stages, contributed resource dependence is eclipsed by market-based dependence, reflected in increasing compensation spending and full-time employment.

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Keywords

Nonprofit, Resource Dependency, Compensation Strategy, Commercialization, Revenue

Citation

Moulick, A. G., Alexiou, K., Dowin Kennedy, E. D., & Parris, D. L. (2020). A total eclipse of the heart: compensation strategies in entrepreneurial nonprofits. Journal of Business Venturing, https://doi.org/10.1016/j.jbusvent.2019.105950.

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