Commercialization: An Option for Sustaining the Nonprofit Sector in Developing Countries
Issue:
Volume 2, Issue 5, October 2014
Pages:
69-77
Received:
21 September 2014
Accepted:
30 September 2014
Published:
10 October 2014
Abstract: The importance of the nonprofit sector in enhancing sustainable development especially in developing countries where states and markets often fail is generally recognized in the literature on organizational behavior and development. The rapid growth observed in this sector has been accompanied by increasing volatility of charity and philanthropy, perverse global shocks and institutional arrangements. These factors threaten the financial sustainability of the nonprofit sector as well as its constant contribution to sustainable development especially in developing countries. This paper proposes an extension of the concept of nonprofit commercialization to developing countries, which until now has claimed significant importance only in the developed countries nonprofit literature. The key hypothesis developed in this paper is that commercialization of nonprofit organizations in developing countries can significantly reduce the risk of financial insolvency, enhance organizational sustainability and long term contribution to sustainable development. The importance of nonprofit organizations and rationale for commercialization of third sector organizations in developing countries is presented. The pros and cons for nonprofit commercialization are intensively discussed before proceeding to some of the key motivating factors for nonprofit commercialization. An empirical example is briefly presented to support this theoretical position. The paper concludes with implications of concept application for research, development and sustainability of the nonprofit sector in developing countries.
Abstract: The importance of the nonprofit sector in enhancing sustainable development especially in developing countries where states and markets often fail is generally recognized in the literature on organizational behavior and development. The rapid growth observed in this sector has been accompanied by increasing volatility of charity and philanthropy, p...
Show More
