The double-edged sword of public-resource dependence: The impact of public resources on autonomy and legitimacy in Korean cultural nonprofit organizations

As governments and nonprofit organizations build close partnerships for the provision of public services, they become interdependent in many ways. In particular, nonprofits' public-resource dependence has significant implications for their behavior and decisions. By examining Korean cultural nonprofit organizations (CNPOs), this article posits a theoretical framework for the impact of public-resource dependence on nonprofits' organizational autonomy and legitimacy. The empirical results of national survey data of Korean cultural nonprofits suggest that public-resource dependence has a dual effect, reducing managerial autonomy while enhancing institutional legitimacy. Korean CNPOs seem to be constrained by public funding granted by both local governments and the central government, particularly in goal setting, resource allocations, and program choices. However, public funding also helps nonprofits earn institutional legitimacy through its reputation and recognition effects.