Financing the arts - Why is it difficult to move from one mode of financing to another?

In the changing funding environment, where a decline in unearned income is seen, arts organisations must increasingly align and meet the demands of a more diverse range of stakeholders in order to strive for their mission. The ability to effectively do so is argued to derive from the adaptability and alignment of an organisations culture, both externally, with customers and funders, and internally, within the organisation. Applying the Value Based Approach (Klamer, 2015), this thesis thus seeks to explore the challenges faced when shifting from one mode of financing to another, considering the influence of an organisations culture, values, and dominant logic, on their wider organisational and financing strategy. This new theoretical model has, to the best of my knowledge, not yet been applied to this topic and thus contributes to the academic field. Following an explorative approach, this comparative multiple-case study research design employs three qualitative research methods: content analysis, a short questionnaire, and 10 semi-structured interviews, in three organisations. Set in the context of Rotterdam the three case organisations are: Rotterdam Philharmonic Orchestra, International Film Festival Rotterdam, and Museum Rotterdam. The findings highlight that the dominant logic, the predominant sphere (the governmental, market, or social) in which the organisation operates, often seen to derive from the sphere in which the organisation was designed to realise its artistic and financial values, guides the case organisations financing approach which in turn makes the shift to realise financial values in other spheres challenging. In addition, the observations suggest increasing similarities between financial values in the governmental and market sphere as the shift to realise more sources of funds through the market sphere appears a more comfortable transition than that of the social sphere.