Responding to COVID-19: International nonprofits' stakeholder channels, resource pressures and governance responses

Abstract

The coronavirus disease 2019 (COVID-19) health crisis imposes severe pressures on nonprofit organizations, which must be resilient to respond effectively to extreme environmental tensions. We combined resource dependence theory with stakeholder theory to frame to what extent nonprofits experienced resource pressures through various stakeholder channels and the nonprofit governance responses. We empirically investigated international medical research and education nonprofits during the COVID-19 pandemic. Our results indicate resource decreases in nearly all stakeholder channels. In response, nonprofit boards increased activity levels by mainly focusing on adapting organizational offerings and increasing support to the organization. Managerial executives also increased their activity levels, by focusing on safeguarding financial stability, planning and adapting operations to confinement measures.