BALANCING EFFICIENCY, EFFECTIVENESS AND ECONOMY THE INFLUENCE OF CHANGES IN GOVERNMENTAL SUBSIDIES ON THE PERFORMING ARTS IN THE NETHERLANDS

This research aims to explain the relationship between three major performance indicators; efficiency, effectiveness and economy and to what extent these indicators and relationships are influenced by changing levels of subsidies. Based on longitudinal data consisting of 882 observations from 144 non-profit performing arts organizations in the Netherlands, that received funding from OCW and FPK between 2009-2016 generalized linear mixed model analysis shows a significant negative relationship between efficiency and effectiveness and a significant positive relationship between both efficiency and economy, and effectiveness and economy. Changing levels of subsidies are found to have a significant negative influence on economy, but no significant influence on the relationship between efficiency and effectiveness.