Non-Profit Organizations as a Nexus Between Government and Business: Evidence From Chinese Charities

Zheng W, Ni N, Crilly D. 2018. Non-profit organizations as a nexus between government and business: Evidence from Chinese charities. Strategic Management Journal, DOI/10.1002/smj.2958

43 Pages Posted: 20 Oct 2018

See all articles by Weiting Zheng

Weiting Zheng

University of New South Wales (UNSW); University of New South Wales (UNSW)

Na Ni

Shenzhen University

Donal Crilly

London Business School - Department of Strategic & International Management

Date Written: September 19, 2018

Abstract

Non‐profit organizations in emerging markets frequently have to manage relations with governments and for‐profit firms. We advance a multi‐stakeholder perspective and develop propositions about how the political ties of charities influence their success in raising funds from corporate donors. Evidence from 2,054 Chinese charities during 2005‐2012 shows that organizational political ties, established through formal affiliation with the government, aid fundraising from corporate donors, whereas personal political ties, formed through personal political services of senior leaders of charities, have no such effect. The positive effect of government affiliation is relevant for both foreign and domestic donors, but stronger for domestic ones. These results highlight the differential impact and contingent value of political embeddedness for charities’ ability to acquire resources from for‐profit business, contributing to both stakeholder theory and the political embeddedness perspective.

Keywords: Charities, Stakeholders, Political Ties, Corporate Donations, Emerging Markets

Suggested Citation

Zheng, Weiting and Zheng, Weiting and Ni, Na and Crilly, Donal, Non-Profit Organizations as a Nexus Between Government and Business: Evidence From Chinese Charities (September 19, 2018). Zheng W, Ni N, Crilly D. 2018. Non-profit organizations as a nexus between government and business: Evidence from Chinese charities. Strategic Management Journal, DOI/10.1002/smj.2958, Available at SSRN: https://ssrn.com/abstract=3252475

Weiting Zheng (Contact Author)

University of New South Wales (UNSW) ( email )

Kensington
High St
Sydney, NSW 2052
Australia

University of New South Wales (UNSW) ( email )

Kensington
High St
Sydney, NSW 2052
Australia

Na Ni

Shenzhen University ( email )

3688 Nanhai Road, Nanshan District
Shenzhen city, 518060
China

Donal Crilly

London Business School - Department of Strategic & International Management ( email )

Sussex Place
Regent's Park
London, NW1 4SA
United Kingdom

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