Innovation in nonprofit organizations in the post-pandemic era: an exploratory study

Innovation has been widely studied in the context of for-profit organizations. Less attention has been paid in business literature to innovation in non-profit organizations. This paper lays out a model for comparison and then explores the differences between the two types of organizations. Using these data, predictions are made as to how these differences will impact the innovative behaviour of non-profit organizations and theories are proposed about the methods of innovation most suited to a non-profit organization. A theoretical model is presented which incorporates differences in vision, in strategic constraints, and in financial constraints.

Using a sample of 17 foundations that are at the forefront of encouraging innovation this study explored foundations' motivations behind funding innovation, their perceived ability to impact the levels of innovation in nonprofit organizations, and strategies that foundations are using or can use to encourage innovation in nonprofit organizations. The results showed that among the major motives behind funding innovation were leveraging the capital, honoring the foundations' core identity (mission and values), and desiring to encourage innovation in nonprofit organizations. Five strategies/mechanisms that foundations are using/can use to encourage innovation in nonprofit organizations were identified: (a) offering innovation awards/grants as catalysts for innovation, (b) providing risk capital and supporting early stage idea development, (c) educating other foundations on the value of innovation and serving in a convener role, (d) serving as thought leaders, and (e) increasing nonprofit organizations' capacity for innovation. Implications for practice are discussed along with recommendations for future research.

This chapter discusses the key theoretical and empirical steps undertaken throughout the authors' previous-but-related mixed methods studies on social innovation in nonprofit organizations (NPOs) in the Australian disability sector with the aim of using the key findings of these studies to develop ‘theories-in-practice' in disability NPOs. In this chapter, the authors summarize the associated theory-building processes deployed to explain how disability NPOs develop and implement social innovations and the societal ‘system-level' impacts of such innovations. These theory-building processes involve two broad phases, and the culmination of these phases (grounded in the abductive logics of inquiry, complexity theorizing, and set-theoretic methods) leads to the development of several ‘theories-to-practice' that not only convey the interactivity of contextual causal mechanisms leading to social innovation by NPOs, but also outline change-oriented solutions for managers who are working to address complex social challenges.

This chapter discusses the key theoretical and empirical steps undertaken throughout the authors' previous-but-related mixed methods studies on social innovation in nonprofit organizations (NPOs) in the Australian disability sector with the aim of using the key findings of these studies to develop ‘theories-in-practice' in disability NPOs. In this chapter, the authors summarize the associated theory-building processes deployed to explain how disability NPOs develop and implement social innovations and the societal ‘system-level' impacts of such innovations. These theory-building processes involve two broad phases, and the culmination of these phases (grounded in the abductive logics of inquiry, complexity theorizing, and set-theoretic methods) leads to the development of several ‘theories-to-practice' that not only convey the interactivity of contextual causal mechanisms leading to social innovation by NPOs, but also outline change-oriented solutions for managers who are working to address complex social challenges.

To contribute to the empirical literature on innovation in non-profit organizations, this study examines innovation in Private Social Solidarity Institutions with social responses for the elderly in Northern Portugal. It enriches the literature by clarifying the concept of innovation applied to non-profit organizations, which represents a perspective different from the business context. Moreover, it is important to support the innovation decision-making process in similar non-profit organizations.For this study, the population was surveyed through questionnaires based on the PUBLIN research project, which has already been applied in different countries, and the targets were employees of organizations with social responses for the elderly. Our sample is small, with 28 respondent institutions and 51 employees, but it is representative, as it includes institutions from all districts in Northern Portugal. The study employed a quantitative approach, particularly factor analysis, multiple linear regression, and correlation analyses, using scales already applied in other dimensions of the social sector, to understand the effect of each innovation dimension/determinant on creativity and innovation in non-profit organizations. The results show that in these organizations with social responses for the elderly, learning orientation, risk-taking, and job satisfaction have a positive impact on innovation.

Innovation is widely accepted as an important determinant of organizational competitiveness, whereas there has been relatively little relevant research conducted in nonprofit organizations. The purpose of this paper is to analyze the linkages among environmental uncertainty, customer orientation and organizational innovation in the nonprofit context. After reviewing the literature on organizational innovation and its relationship with environmental uncertainty and customer orientation, this paper analyzes those relationships using a sample of 136 nonprofit organizations. Results of structural equation modeling analysis indicate that customer orientation is positively associated with innovation and that environmental uncertainty can promote both customer orientation and organizational innovation. The results reflect that customer orientation partially mediates the relationship between environmental uncertainty and organizational innovation in nonprofit organizations. Implications of the findings and possible future research directions are discussed.

We examine how donors influence long-term product innovation in non-profit organizations by estimating a fixed-effects model using longitudinal data on a sample of nonprofit organizations. Innovation requires multiyear funding, but donors to nonprofit organizations are an unreliable source of funding. Consistently, we find that when a nonprofit organization is increasingly supported by external donor funds, it reduces long-term innovation. However, as the nonprofit becomes more dependent on stable sources of earned revenue, such as subscriber and member revenue, concern associated with donor funding support is attenuated. Moreover, in contrast to donor funding support deterring innovation, when a nonprofit attracts more individual donors it increasingly emphasizes long- term innovation because donors have long-term aspirations for the non-profit and offer non-financial resources and ideas to the innovative process.

In the context of globalization, technological advances, and the development of the knowledge economy, organizations must innovate to remain competitive. Recently, the call for innovation in public and nonprofit sector organizations has increased. These organizations, which rely on tax exemption, state allocations, or charitable contributions, must innovate for practical and symbolic reasons. While many factors contribute to innovation capacity, a key variable – employee perceptions of organizational support for innovation – is an influential variable. In several studies, employees who perceived greater organization-supported innovation were more likely to behave in innovative ways. Research indicates that perceptions of organizational support for innovation may be affected by organizational trust and individual resistance to change. The purpose of this study was to conduct an exploratory investigation of perceptions of organizational support for innovation among employees of a nonprofit credit union in a Midwestern state. Associations among organizational support for innovation, resistance to change, organizational trust, and several independent variables were measured. A web-based survey, made up of previously tested scales, was distributed to 534 employees and completed by 345, for a 64.6% response rate. Three methods were used to test the hypotheses: principal components analysis, multiple regression analysis, and path analysis. Several significant direct associations were found. As organizational trust and work engagement increased, organizational support for innovation also increased. As resistance to change, conflict, and level of education increased, organizational support for innovation decreased. Two significant interaction effects were also found; the interaction variable of organizational trust and education and the interaction variable of resistance to change and participation in the innovation workshop each contributed significantly to the

Although innovation plays an important role in attaining competitive advantage for any organization, no currently available scale is adequate for the measurement of organizational innovation in nonprofit organizations (NPOs). Through a concise review of the literature, three dimensions of nonprofit organizational innovation (NOI) were identified. A cross-sectional survey methodology was used to collect the data. Based on exploratory and confirmatory factor analysis, we constructed the NOI scale, with three factors and 12 items. Reliability and validity assessments provided evidence of the scale's psychometric property. Organizational innovation was found to be a significant predictor of organizational performance in NPOs. This study used a convenience sampling method which may limit its generalizability to other respondents. Future research should investigate other different industries and cultures outside of the industrial associations and community medical institutions examined in the current study. Furthermore, the antecedents and consequences of NOI need to be investigated in future studies.

Most of existing literatures are concentrated on the relationship between market orientation (MO) and performance of enterprises, fewer studies are about market orientation of nonprofit organizations (NPOs), and it is almost a blank both in China and abroad with regard to studies on mediating variables between MO and performance of NPOs. In this study, by analyzing the questionnaire from 223 NPOs under the Chinese context, the impact of MO on performance is explored. Considering innovation in NPOs is also a forefront research area, organizational innovation is included as a possible mediating variable in our analytical framework. Based on systematic verification of the psychometric properties of market orientation, innovation and performance measuring instruments, empirical results obtained from Structural Equation Modeling (SEM) reveal that, NPOs market orientation has direct positive impact on their performance and innovation plays a partial mediating role between the two. While developing the MO strategy, it is also necessary for NPOs to strengthen organizational innovation capability to improve their performance more efficiently.

To make a sustained social impact in changing contexts, nonprofit organizations (NPO) must innovate their organizational practices, processes, and structures. These innovations can enhance their social innovation capacity. This scoping study synthesized key elements of the capacity to engage in social innovation. Four databases were scanned, and 110 peer-reviewed studies were selected for content analysis, and thematic analysis. The findings show how internal factors, such as leadership, procedures, structures, values, and organizational culture, influence organizational innovation in NPOs and how inclusive processes are important for innovating. This study informs which factors to address when conducting organizational innovation, and it shows how organizational innovation has been conducted. By engaging in organizational innovation, NPOs can enhance social innovation capacity. However, more research is needed – especially in non-Western contexts – on the complex efforts and dynamics related to conducting innovations at the organizational level and their significance for NPO performance and long-term viability.

Innovation is critical for nonprofit organizations’ effective response to changing environmental conditions. While the board of directors, which has the ultimately responsibility for leadership and governance of nonprofit organizations, is in a position to facilitate the development of such capacity, theoretical and empirical literature on this link is very limited and originates primarily in developed world countries, limiting its generalizability and usefulness to other national contexts. The author of this article sought to contribute to the growing literature on boards and innovation by (1) discussing potential usefulness of a Western conceptual model—Board of directors and innovation in nonprofit organizations (Jaskyte, Human services as complex organizations, 2012)—to other contexts, more specifically those of developing countries and (2) providing preliminary empirical evidence for the links presented in the model from nonprofit organizations in developing countries. Five representatives of four social service nonprofit organizations in developing countries known for their continuous innovation were interviewed in order to gain some insights into the board’s role in facilitating innovation. While limited, preliminary data provide support for the importance of board attribute and process variables for organization’s capacity for continuous innovation, and suggest that considering cultural contexts when assessing usefulness of established models might be paramount.

While foundations contribute in significant ways to the United States’ social, economic, and political life, they are experiencing increasing demands placed upon them by their own sector and need to respond to the major changes in their external environment. In order to create breakthrough solutions to long-standing problems, foundations have to become more innovative and seek to experiment and find new approaches. Unfortunately, innovation discourse within foundations has received little attention. This paper fills the gap in the literature as it describes the results of a study that explored different types of innovations implemented in foundations. More specifically, staff members of 17 US foundations that are known for supporting innovation in nonprofit organizations, were asked to describe programmatic and administrative innovations implemented in their own foundations. The results showed that foundations that support innovation are in fact innovative themselves. They implemented numerous innovations in programmatic and administrative, financial, and structural areas. This paper provides a rich description of a broad range of innovations implemented within each of those areas. The contribution of this study and insights are significant at this particular time when foundations’ roles and impact on social change are questioned. The results can enrich our discussion of where foundations can go from here in terms of becoming innovative themselves in order to be able to support and enhance innovation in the nonprofit sector.

Subject. The COVID-19 pandemic has been challenging for the healthcare system, people's daily lives, and organisations, which have faced new risks and restrictions affecting their stability and further development. The study examines the state of Russian non-profit sector organisations during the spread of the new coronavirus infection. Objectives. The article provides a description of restrictions for the development of non-profit sector organisations and various mechanisms to overcome them in the context of numerous restrictions introduced as a result of the spread of the new coronavirus infection. Materials and methods. The information base for the study included statistical data, analytical and reporting documents of non-governmental and governmental institutions, and the results of the studies on the subject obtained by Russian and international researchers. The following methods were used: secondary analysis of sociological surveys; content analysis of official documents; systematisation and generalisation of the data. Conclusions. The analysis showed that during the coronavirus pandemic Russian non-profit organisations as well as other economic entities faced a lot of challenges. The main restrictions for the sector were determined. They included financial and organisational restrictions. The measures of state support for non-profit organisations were framed into a unified organisational and economic mechanism and individual quantitative indicators were analysed: preferential loans, subsidies for activities to prevent the coronavirus infection, exemption from advance payments and insurance fees, the results of a special unscheduled contest of the Presidential Grants Fund for the Development of Civil Society. The analysis of quantitative indicators revealed that there is a demand for governmental anti-crisis measures among non-profit sector organisations. It was found that together with governmental measures aimed at overcoming the difficulties associated with the restrictive measures, a private organisational and economic mechanism was established to support non-profit organisations at the expense of business resources, which was studied by the authors based on the example of charitable funds. In conclusion, it was noted that the COVID-19 pandemic has enhanced the development of inter-sector cooperation aimed to solve common problems. Reliance on consolidation and partnership in difficult economic conditions will allow non-profit organisations to expand and select the most appropriate ways to support their activities.

The purpose of this study was to explore the relationship between boards of directors and innovation in nonprofit organizations. The results showed that not only board attributes and processes are ...