Challenges and Success Factors in Nonprofit Arts Organization Mergers

Rawon Lee

Rawon Lee is a former lecturer at the Department of Arts Administration, Education and Policy at The Ohio State University, Columbus, OH, USA. Recent works include studies on art’s economic impact, cultural assessment, fundraising and arts education.

ABSTRACT
Negative repercussions of the COVID-19 pandemic have prompted a heightened surge of interest in mergers in recent years. Despite the interest, one finds a longstanding paucity of analytical attention on mergers between arts organizations (“arts mergers”). This study presents a comparative case study of two arts mergers involving a total of five performing arts organizations in the United States. By employing grounded theory, this study identified an array of challenges involved in the implementation of arts mergers and the factors that assist a successful implementation. Findings of this study inform a new set of critical considerations for arts mergers and suggest applicable implications for arts and nonprofit management at large. In essence, this study testifies the significance of retaining the artistic identities and assets of all organizations involved in an arts merger and the necessity of merger-related support from outside sources in actualizing merger implementation. Findings testify merits of mergers in increasing artistic and financial capacity of arts organizations also.

KEYWORDS
Arts merger, nonprofit merger, nonprofit arts organization, arts management, interorganizational integration