Captured by Partners: Interorganizational Relationships and Fund Allocation Stability in United Way Systems

While organizational systems are associated with innovation and adaptability, interorganizational relationships may be predisposed to stability. Using multinomial logit analysis, we test how resource dependencies affect system stability in local United Way (UW) systems between 2000 and 2010. We find strong support for the resource dependence argument. UW are less likely to drop larger, powerful partners that are strong fundraising partners. However, powerful, long-term partners not contributing to the strategic objectives of the UW system are more likely to experience a decrease in allocations. While powerful resource partners may capture the UW, UW systems continue to change through the addition of new partners and the reallocation of resources among long-term partners. However, context also affects the capacity for change. Larger UWs are more likely to add new partners and less likely to keep long-term partners.