[1] This is achieved through reduction of state subsidies, organizational restructuring of management (corporatization), decentralization and in some cases partial privatization.
Critics of globalization, privatization, and liberalization have deemed that it is unworkable without major government regulations to balance the forces involved.
This phenomenon is now permeating into Higher Education in general, with research suggesting that students rather than being perceived as learners are now viewed as customers and therefore a critical component in the business model of many universities [3] Nonprofit organizations came to fruition when people began to recognize that society had needs for services rendered by neither the government nor the private sector.
[6] Additionally, grant money often comes with performance measures or quotas that are required to meet in order to maintain funding.
[8] Portions of the literature surrounding nonprofit marketization also consider the positive effects that result from the aforementioned diversified and more sustainable collection of revenue streams.
[10] Studies conducted of commercial activity in national nonprofit services associations[11] and voluntary social agencies[12] "discovered that such initiatives were generally related to and contributed substantively to mission accomplishment".
[13] In the same vein, it has been said that leaders within the nonprofit sector can see benefit from understanding and finding ways to employ commercial forces for social good.
According to Tuckman, a "strong likelihood exists that the missions of nonprofits engaged in commercial activities will grow more ambiguous over time."
[15] Structural organizational changes are also mentioned as a potential negative impact of enhanced commercial activity among nonprofits.
From organizational changes necessary to accommodate market-based endeavors, such as growth in "number and scope" of administrative offices that manage profit-seeking efforts, to the "tendency to replace traditional, social problem-focused board members with entrepreneurial, business-oriented individuals," changes take effort from work directly related to mission accomplishment.
"[17] Related to this blurring effect, is the theory that civil society is at risk as a result of enhanced marketization within the voluntary organizations.
Overall, this theory stands on the thesis that marketization "may harm democracy and citizenship because of its impact on nonprofit organizations' ability to create and maintain a strong civil society.
"[18] The responsibility of nonprofits to those in need is said to become potentially overshadowed by economic and competition-centered values that result from enhanced market-based and commercial activities.
Increased desire of voluntary organizations to "secure competitive advantage in the pursuit of producing individual-level goods and services for those who can afford them," rather than those defined in the original organizational mission.