Contingency and Institutional Approaches to Conceptualizing Organizational Performance in Non-Profit Sector

Abstract

The conceptualization of organizational performance has received considerable attention in both the management accounting and nonprofit (NFP) literature. However, it is difficult to reach consensus on what constitutes "organizational performance." The unique nature of NFP, as well as the considerable size and influential impact of this sector in the Western economy, leads us to better understand the nature of performance of such organizations. Some argue that NFPs benefit from taking the same perspective on organizational performance as their commercial counterparts, while others argue that NFPs are so unique that the concept of the commercial sector is inappropriate or very difficult to implement. The paper argues that the seemingly conflicting views of how to conceptualize organizational performance in the NRP sector can be adjusted. The conclusions presented can guide researchers and practitioners in considering the nature of performance in this important sector.