A Systematic Literature Review of the Use of Voluntary Failure Theory: Towards a Future Research Agenda

Abstract

Despite voluntary failure theory (VFT)’s foundational role in public and nonprofit management scholarship, we do not know how it is used and evaluated. Our systematic literature review finds that scholars’ use of VFT centers on descriptive purposes, rather than providing theoretical propositions regarding the causes and consequences of government support to nonprofit organizations. The assessment of voluntary failure has also gone beyond the four types articulated by Salamon (1987). We conclude by proposing a future research agenda centered on elucidating the testable hypotheses, articulating the level of analysis, and orienting voluntary failure creating a broad set of public values.