Linking organizational values to relationships with external constituents:A study of nonprofit professional theatres

This study explores the organizational values that characterize firms in th e nonprofit professional theatre industry, and examines the links between f irms' organizational values and their relationships with external constitue nts. Using grounded research methods, we uncover five value dimensions that are relevant to arts organizations: prosocial, artistic, financial, market , and achievement. Using a sample of 97 nonprofit theatres, we extend our q ualitative inquiry with an empirical investigation of how firms enact their organizational values to build and maintain relationships with external co nstituents. Results from a two-wave survey design indicate consistent patte rns of association between organizational values and (1) perceptions of val ues congruence with external constituents, (2) human resource allocation an d programming decisions that firms make to support relationships with exter nal constituents, and (3) the level of financial resources that firms obtai n from their relationships with different external constituents. Interestin gly, results from both investigations hint at underlying tensions between c ompeting values in cultural firms, such as pressures to be both artistic- a nd market-oriented.