The Role of Relationally Embedded Network Ties in Resource Acquisition of British Nonprofit Organizations

Abstract

As nonprofit and charity organizations face increasing competition, there have been growing interests in how nonprofit organizations conduct commercial activities to raise funds as well as grow their business. However, there is lack of prior research about market-oriented and/or commercial activities in the context of nonprofit business. This study examines the process of how nonprofit organizations use relationally embedded network ties to acquire financial, human, and human capital resources to fulfill their social mission and achieve business growth. The study investigates commercial activity of three U.K.-based nonprofit organizations using the case study method. The findings contribute to insights into components of network ties for acquiring three different network resources of financial, human, and human capital. Nonprofit organizations leverage social mission to improve their ability to acquire network resources. The findings also suggest the charity and social mission of nonprofit business enhance trustworthiness in relationally embedded network ties for resource acquisition.