Strategic choices and change in non-profit organizations

Abstract

More than ever, non-profit organizations are embracing strategy in order to navigate the rapid change in their operating environment. This study draws on the Miles and Snow generic strategies (prospector, analyser, defender and reactor) to examine: (a) current and previous strategic choices of non-profit organizations and (b) the role of government funding in the change (if any) from one strategic type to another. The study finds that while there were movements from and towards the four strategic types, analyser is the most common strategy among non-profit organizations followed by prospector. Non-profit organizations appear to be considering many factors including government funding, internal environment and prior strategy in order to determine their current strategy. However, government funding was not the primary factor in the strategic change in non-profit organizations. Copyright © 2006 John Wiley & Sons, Ltd.