Growing Up Nonprofit: Predictors of Early-Stage Nonprofit Formalization

2021 ◽  
pp. 089976402110142
Author(s):  
Elizabeth A. M. Searing ◽  
Jesse D. Lecy

The nonprofit organizational life cycle literature has traditionally focused on the entry and exit processes; the intermediate organizational life stages between these bookends have received less attention. Almost half of all nonprofits at any given time operate in an early life stage with less than US$100,000 in revenue, minimal overhead spending, and no paid managers. This study examines the process by which nonprofits leave the small, informal, startup phase and begin the next life stage characterized by growth and formalization. We identify financial and organizational characteristics that predict whether the nonprofit will successfully transition out of the early and informal life stage. We find that investments in professional fundraising and access to government funds are predictive of the transition out of the start-up phase, while traditional financial predictors such as revenue concentration, equity ratio, fixed cost ratios, and the accumulation of unrestricted assets have modest to no effects.

2019 ◽  
Vol 70 (11) ◽  
pp. 1503 ◽  
Author(s):  
Anna Navarro ◽  
Craig A. Boys ◽  
Wayne Robinson ◽  
Lee J. Baumgartner ◽  
Brett Miller ◽  
...  

Egg and larval fish drifting downstream are likely to encounter river infrastructure leading to mortality. Elevated fluid shear is one likely cause. To confirm this and determine tolerable strain rates resulting from fluid shear, egg and larvae of three Australian species were exposed to a high-velocity, submerged jet in a laboratory flume. Mortality was modelled over a broad range of strain rates, allowing critical thresholds to be estimated. Eggs were very susceptible to mortality at low strain rates and 100% of golden and silver perch died once strain rate exceeded 629 and 148s–1 respectively. Larvae were less vulnerable than eggs, but mortality increased at higher strain rates and at younger ages. Most ages of larvae will be protected if strain rate does not exceed 600s–1, although a lower guideline of less than 400s–1 may be needed in areas where very early stage Murray cod larvae drift. Golden perch and silver perch were not susceptible to shear once maturity reached ~25 days post-hatch (nearing juvenile metamorphosis). The thresholds described here will prove useful when refining design and operational guidelines for hydropower and irrigation infrastructure to improve fish survival.


2011 ◽  
Vol 1 (3) ◽  
pp. 1-11
Author(s):  
Satish K. Nair

Subject area strategic alliances/collaborative strategies; defending against global competitors; related diversification; entrepreneurship-organizational life cycle; and evaluating strategies for firm growth. Study level/applicability MBA/PGP level programmes in management and/or entrepreneurship. Case overview Aztec Fluids & Machinery, set up just over four years ago in the city of Ahmedabad in Gujarat, India, caters to the printer hardware, spares and consumables needs of the digital ink jet printing market. The company has identified vendors principally from the UK and China for its printers and consumable sourcing and presently markets these using a hybrid channel structure of direct selling and through 12 distributors in ten cities of India. A recent development of note is the successful transformation of a flexible roll printer into a flat-bed type one by the co-founder. The experiment assumes significance since the cost of a conventional flat-bed screen printer is almost five times that of the improvised printer. The huge, fragmented, price-sensitive, yet quality-conscious market in India offers immense potential for this innovation. At the same time, Aztec's recent interactions with a couple of its UK-based vendors present other alternatives for growth. Expected learning outcomes To explore organizational life cycle: the introduction and early growth phases. To understand alliance dynamics for early-stage entrepreneurs –rationale, management and the manifestation of trust between different types of partners: suppliers and customers. To understand how small firms prepare for and evaluate the challenges of growth. Supplementary materials Teaching note.


2011 ◽  
Vol 17 (6) ◽  
pp. 782-796 ◽  
Author(s):  
Quey-Jen Yeh ◽  
Pin Fang

AbstractDrawing on the resource-based view (RBV) of the firm, this study proposes two levels of resource action: shedding resources and adding resources as the main two turnaround approaches. Since firms differ in the way they manage their resources over stages of organizational development, this study further analyzes the link between the RBV and organizational life-cycle model to investigate the contingency role of life stages in the turnaround context. The study sample consists of 72 Taiwan firms had ever experienced a successful turnaround. The results indicate that cost-cutting and investment in training and R&D, which represent respectively a shedding and an adding resource action, enable firms to turn around their deteriorating performance. The results also show that R&D investment is more effective for early-stage firms, while cost-cutting is more useful to firms in the late-stage.


2021 ◽  
Vol 010 (01) ◽  
pp. 105-124
Author(s):  
Agus Harijanto ◽  
Syamsul Maarif ◽  
Herien Puspitawati ◽  
Joko Affandi

2016 ◽  
Vol 43 (6) ◽  
pp. 906-935 ◽  
Author(s):  
Matthew W. Rutherford ◽  
Matthew J. Mazzei ◽  
Sharon L. Oswald ◽  
L. Allison Jones-Farmer

This work builds upon an existing stream of research that seeks to empirically elucidate the role of legitimacy in helping entrepreneurs overcome liabilities of newness. More specifically, we examine the relationship between legitimating activities and performance in new ventures. We add to the empirical literature on the legitimacy/performance relation by focusing on top performing firms (on multiple performance measures) during the initial phase of the organizational life cycle. Moreover, we submit that our longitudinal sample, which includes data from nearly 5,000 new ventures, offers an important opportunity to enhance the external validity of this base of literature. Interestingly, we find that the value of engaging in legitimating activities depends upon the outcome measure. With regard to top line performance, and in accordance with theory and extant literature, we find that companies engaging in more legitimating activities at start-up are more likely to be top performers as they move beyond the “birth” phase. However, with regard to profitability, engaging in these activities may actually be detrimental.


2019 ◽  
Vol 12 (4) ◽  
pp. 663
Author(s):  
Alan Santos Oliveira ◽  
Karla Katiuscia Nóbrega Almeida ◽  
Wenner Glaucio Lopes Lucena

This study aimed to analyze the remuneration of executives in each phase of the business life cycle. A descriptive, documentary, survey-type study was performed with a predominantly quantitative approach, using a sample of 560 observations across 112 companies. For the definition of the current life cycle phase of each company analyzed, Dickinson’s (2011) methodology was chosen, which classifies the life cycle into the five phases of start-up, growth, maturity, turbulence, and decline, based simultaneously on the signs of the operating, investment, and financing cash flows. The construction of the econometric model was based on Madhani (2012), Ventura (2013), and Koh et al. (2015). The results suggest that the highest level of executive compensation was in the turbulence phase, followed by the growth, decline, and start-up phases, with the lowest level observed in the maturity phase. It was concluded that the level of remuneration paid to the executives of the companies studied herein is related to the organizational life cycle, which corroborates the contingency and agency theories.


2014 ◽  
Vol 4 (1) ◽  
pp. 189 ◽  
Author(s):  
Fotios V. Mitsakis

  Today’s turbulent business environments require from firms to continuously re-shape their HR practices and strategies in order to sustain competitiveness within the market. Among numerous factors affecting a firm’s viability and effectiveness, the recent EC, along with firm's BLC, will also present distinctive opportunities and obstacles that will impact upon business’s units and operations. Identifying a firm’s life stage will help organizations to acknowledge their competencies and constricts so to successufully manage future challenges. The present paper examines the different BLC stages, their obstacles and the competitve strategies which organizations can implement on each phase. Based on Hoy’s (2006) BLC model, the stages are analyzed in accordance with business’ HR implementations and strategies. Additional reference is concentrated on the organizational life cycle in the banking industry. Therefore, the paper presents an extensive overview of the relevant literature on business life cycles models, followed by and analysis of a specific BLC model suggested by Hoy (2006).


2011 ◽  
Vol 17 (6) ◽  
pp. 782-796 ◽  
Author(s):  
Quey-Jen Yeh ◽  
Pin Fang

AbstractDrawing on the resource-based view (RBV) of the firm, this study proposes two levels of resource action: shedding resources and adding resources as the main two turnaround approaches. Since firms differ in the way they manage their resources over stages of organizational development, this study further analyzes the link between the RBV and organizational life-cycle model to investigate the contingency role of life stages in the turnaround context. The study sample consists of 72 Taiwan firms had ever experienced a successful turnaround. The results indicate that cost-cutting and investment in training and R&D, which represent respectively a shedding and an adding resource action, enable firms to turn around their deteriorating performance. The results also show that R&D investment is more effective for early-stage firms, while cost-cutting is more useful to firms in the late-stage.


2001 ◽  
Vol 2 (3) ◽  
pp. 183-194
Author(s):  
Mike Beverland

A number of authors have noted that few small firms grow into larger firms. As a result they have criticized models that implicitly assume small firms grow. One such model is that of the organizational life-cycle. These models assert that firms go through a series of distinct stages or cycles as they develop over time. This study develops a four-stage model of a life-cycle based on 20 case studies of small growth-oriented New Zealand wineries. Wineries were found to go through pre-birth, start-up, expansion and growth stages in their first eight years. During this time, owners had little choice about the developmental path their organizations took. After this initial eight years, owners had far more influence on the future direction of the firm.


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