Why do NPOs diversify? The limited applicability of insights from diversification literature

Abstract

Antecedents of diversification in for-profit organizations have been studied extensively, yet it remains unclear what drives diversification in non-profit organizations. To address this question, we integrate literature about antecedents of diversification in for-profit organizations with literature on non-profit organizations. In doing so, we build a conceptual model of antecedents of diversification in non-profit organizations. Our discussions highlight that we lack detailed insight into the specific drivers of diversifications in non-profit organizations with antecedents of diversification identified in for-profit organizations only offering a partial explanation. In highlighting differences, we contribute towards the growing literature that explains strategy and strategic decision making in non-profit organizations, and we highlight the limited applicability of current theories of antecedents of diversification for a broader set of organizations.