In spite of the belief instilled by the New Public Management reforms that nonprofit organizations (NPOs) can benefit from more management, more measurement and more market practices, systematic knowledge on the organizational effects of NPOs incorporating business practices in their day‐to‐day functioning remains absent to date. This research note addresses this limitation by reviewing 49 research articles. The focus lies on the redefinition of nonprofits' mission and income streams, changing governance arrangements and shifting management practices. We find that, despite numerous detrimental effects cited in the literature, (a) generating commercial income can contribute to the financial stability of NPOs, and (b) hybridization towards the market domain can strengthen the organizational legitimacy of NPOs, suggesting that imitating for‐profit enterprises might contribute to nonprofit functioning in perception, rather than in practice.

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Despite widespread concerns about nonprofit organizations becoming “business-like” by hybridizing toward the market sphere, systematic knowledge about the extent and coherency to which this phenomenon finds traction beyond the liberal welfare context remains largely absent to date. Based on survey data ( N = 496), this study addresses this lacuna for the region of Flanders (Belgium), an emblematic case of a post-corporatist welfare state. We find that (a) business practices are on the rise yet not prominently present, and (b) the theorized conceptual coherence of this phenomenon corresponds with a more fragmented empirical reality. This raises the question to what extent the conception of nonprofit hybridization toward the market sphere as a “monolithic threat” to the distinctiveness of the nonprofit sphere is an empirical reality in a post-corporatist welfare context.

A growing body of literature discusses the (dis)advantages of nonprofit organizations becoming commercial by engaging in the sale of organizational services and products. However, when explaining this phenomenon, scholars tend to focus on resource uncertainty, thereby disregarding the organizational ability to commercialize. Complementing resource dependency theory with insights from contingency theory, this study presents arguments drawn from a comparative case study of six sociocultural nonprofits in Belgium. We find that, when resource uncertainty is similar, organizational differences in terms of commercial income can be explained by differences in (a) organizational origins, (b) professional capacity, and (c) types of tasks. We conclude that organizational characteristics can either enable or disable the ability of nonprofits to commercialize and consequently their ability to self‐sustain in an increasing challenging resource environment.