Competitive Advantage in Nonprofit Grant Markets

Implications of Network Embeddedness and Status

Lewis Faulk, Jasmine McGinnis Johnson, Jesse Lecy

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

This article empirically addresses the effects of network embeddedness on nonprofit organizations’ ability to access financial resources within competitive markets, with a focus in this analysis on the acquisition of foundation grants. We test theory on the role of organizational status in competitive markets using data from a network of nonprofits linked by foundation grants in metropolitan Atlanta during 2000 and 2005. We find that observable characteristics of nonprofits, including size, fundraising expenses, and financial health, explain success in grant markets. However, market status in previous time periods, operationalized as prior relationships with influential foundations in grant markets, additionally explains future grant awards. Our findings suggest that the status conferred through connections to important actors in a network can raise the profile of a nonprofit and increase the probability of grant success.

Original languageEnglish (US)
Pages (from-to)261-293
Number of pages33
JournalInternational Public Management Journal
Volume20
Issue number2
DOIs
StatePublished - Apr 3 2017
Externally publishedYes

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grant
market
fundraising
test theory
non-profit-organization
Network embeddedness
Competitive advantage
Competitive market
ability
health
resources
Nonprofit organization
Market data
Expenses
Fund raising
Financial health
Financial resources

ASJC Scopus subject areas

  • Business and International Management
  • Public Administration

Cite this

Competitive Advantage in Nonprofit Grant Markets : Implications of Network Embeddedness and Status. / Faulk, Lewis; McGinnis Johnson, Jasmine; Lecy, Jesse.

In: International Public Management Journal, Vol. 20, No. 2, 03.04.2017, p. 261-293.

Research output: Contribution to journalArticle

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