The research investigated factors that affect the sustainability of nonprofit community behavioral healthcare organizations (CBHOs) with annual revenues > $10 million. The theoretical framework encompassed resource dependence, institutional, strategic choice, and organizational effectiveness theories and used a systems model to delimit variables of interest. Using survey methodology, the quantitative study examined relationships between variables of resource dependence, institutional pressure, strategic choice, and financial performance (effectiveness) across a population of 508 CBHOs within the United States. To accomplish this, measures previously introduced by Bielefeld (1992a, 1992b) and Tuckman and Chang (1991) were adapted to align with the influencing environment of CBHOs. The following correlations were statistically significant: resource dependence and a revenue-seeking strategy; institutional pressure and a revenue-seeking strategy; institutional pressure and a legitimation strategy; resource dependence and financial performance; and a revenue-seeking strategy and financial performance. The study examined the extent to which variables of resource dependence, institutional pressure, and strategic choice explained variation in financial performance. The equity financial model was significant (R 2 = .13, F (5, 89) = 2.6, p < .05). The revenue concentration financial model was also significant ( R2 = .13, F (4, 90) = 3.16, p < .05). The administrative expense financial model was not significant. Findings revealed the close linkage between the resource and institutional environment and a high level of dependence of the sector on government funding. Revenue-seeking strategy was significant in two of three financial models. The research holds promise for replication in other homogenous nonprofit sectors.
|Subjects||Management; Health care management|
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