Organizational mission and revenue diversification among non-profit sports clubs

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Bibliographic Details
Title translated into German:Organisatorischer Auftrag und Einnahmendiversifizierung bei gemeinnützigen Sportvereinen
Author:Wicker, Pamela; Feiler, Svenja; Breuer, Christoph
Published in:International journal of financial studies
Published:1 (2013), 4, S. 119-136, Lit.
Format: Publications (Database SPOLIT)
Publication Type: Journal article
Media type: Electronic resource (online) Print resource
Language:English
ISSN:2227-7072
Keywords:
Online Access:
Identification number:PU201407006684
Source:BISp

Author's abstract

The beneficial effects of diversified income portfolios are well documented in previous research on non-profit organizations. This study examines how different types of organizational missions affect the level of revenue diversification of organizations in one industry, a question that was neglected in previous research. Based on contingency theory, it is assumed that different missions are associated with different funding sources. Since missions can be complementary or conflicting, specific attention needs to be paid to the combination of missions. The sport sector is chosen as an empirical setting because non-profit sports clubs can have various missions while their overall purpose is promoting sport. Panel data from a nationwide survey of non-profit sports clubs in Germany are used for the analysis. The regression results show that revenue diversification is significantly determined by organizational mission. Historically, typical mission statements like promoting elite sport, tradition, conviviality, non-sport programs, and youth sport have a positive effect on revenue diversification, while clubs with a commercial orientation and a focus on leisure and health sport have more concentrated revenues. The findings have implications for club management in the sense that some missions are associated with higher financial risk and that the combination of missions should be chosen carefully. Verf.-Referat