When Demand Mixes and Matches with Supply: A Configurational Analysis of Nonprofit Sector Density in China

Abstract The nonprofit sector is a vital component of good governance, yet it remains unclear how different factors interact to shape its development. This study employs a fuzzy-set qualitative comparative analysis (fsQCA) method to examine how demand- and supply-side factors combine to influence nonprofit sector density across jurisdictions, using Chinese social service nonprofits as the empirical context. We identify three pathways to high nonprofit sector density and two pathways to low density, each involving a distinct combination of demand- and supply-side conditions. There is no singular formula for understanding nonprofit sector density; rather, it emerges from different mixes of these factors through various pathways. The findings unpack the causal complexity underlying nonprofit sector density by providing new evidence from a non-Western setting and offering fresh insight into how nonprofit theories operate in configuration.