Marketization as an Influence on Leadership Behavior and Organizational Mission in U.S.-Based Nonprofit Organizations

Nonprofit organizations (NPOs) form a sector of society aimed at supporting specific communities without a profit motive and the encumbrances inherent in government organizations. As society has matured, NPOs find themselves engaging in their missions within the context of a highly competitive marketplace. Leadership and staff find that resource requirements are growing, the supply of funding and other sources of support is threatened, and the expectations of their communities are expanding. This has led NPO leaders to make decisions to adopt businesslike practices, called marketization, more frequently. This study explored an under-researched sector of the NPO community, trade associations and professional societies. The investigation reviewed the potential dynamics of mission drift and marketization in these nonprofit organizations. The study employed a qualitative, flexible design focused on creating cases from a range of member-based NPOs. The research questions focused on the drivers behind nonprofit marketization, how these shifts impact organizational values, the roles of the board and staff in balancing financial sustainability with mission adherence, and the influence of external funding partners. The findings present a nuanced landscape in which financial instability often compels organizations to prioritize revenue generation. Key themes include challenges in balancing accountability, board and staff dynamics, the application of strategic planning tools, and adapting to member expectations in a changing environment. The research examined resource dependency theory and institutional theory, and validated their concepts within this category of NPO. These NPOs stayed focused on their mission, even as they increasingly adopted businesslike practices and marketization strategies.