Over the past decade, nonprofit organizations' (NPOs) abilities to execute their social missions have been hindered due to changes in the economy. Critical resources are thinning and competition for those resources are increasing among rival NPOs. Obtaining critical resources and reducing dependence on external organizations are objectives of vulnerable organizations and are the basic concepts of resource dependence theory (RDT). NPOs' reliance on outside organizations is descriptive of the basic constructs of RDT, which was the grounding theory for this study. Using RDT, this study provided an empirical analysis of the correlation between vulnerability and three other constructs of RDT (resource diversification, dependence, and countervailing power) based on the perception of NPOs in Alabama's Black Belt region. This study used a researcher-developed 30-question survey, based on 102 participants' responses, to answer the research question: How does resource dependence theory explain the relationships between perceived revenue diversification, perceived dependence, perceived countervailing power, and perceived to test the three null hypotheses to determine whether relationships exist between variables. Empirical testing confirmed the existence of relationships between perceived vulnerability and two constructs of RDT—perceived dependence and perceived countervailing power—but not perceived revenue diversification.
|Adviser||Judith L. Forbes|
|Subjects||Management; Organization theory|
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