“The advancing of management”: Cross‐sector agents and rationalization of nonprofits in Eastern China

Abstract

This study examines and extends former theoretical argument of nonprofit rationalization in the Chinese context. Based on a survey study of 179 nonprofit organizations across Zhejiang province of Eastern China, we find that nonprofits led by individuals with prior business experience and with more extensive business networking are more likely to adopt rationalized rules and practices. Moreover, the results indicate support for the mediation effect of business networking on the relationship between prior experience and rationalization. We also find the moderation effects of management training on the direct effect of prior business experience and on business networking, as well as the indirect effect of prior business experience on rationalization via business networking. Our findings contribute to explaining the formation of rationalization in the Chinese nonprofit sector and provide implications for future research, practice, and policy.