The decline in funding to state-supported institutions of higher education (IHEs) in Kentucky has compelled these universities to secure alternate forms of revenue to support their capacity to meet public expectations. These other funding streams include enrollment, philanthropic support, and acquiring sponsored funding for research projects and programs. While smaller state-supported Predominantly Undergraduate Institutions (PUIs) face resource and credibility challenges in their pursuit to expand external funding activity, they continue to strategically bolster their respective research enterprises amid shrinking budgets and increased competition for external funds. This case study--conducted in Fall 2015 and Winter 2016--employed qualitative methods to gain an understanding of how three purposefully selected PUIs in Kentucky adapted to a decline in state appropriations and reconfigured organizational structures and roles to facilitate adaptation. Key findings in the study support the importance of upper-administrative knowledge building and leadership in expanding the PUI research enterprise. Additionally, strategic resource allocation, organizational restructuring, a strong policy base, and a focus on research development activities are critical elements in bolstering competitive external funding procurement. [Paper presented at the National Council of University Research Administrators (NCURA) Region III Annual Meeting (Miramar Beach, FL, Apr 29-May 4, 2016) and the NCURA Annual Meeting (Washington, DC, Aug 7-10, 2016).]