Unpacking Not-for-profit Performance

Abstract

Little is known about the relationship between entrepreneurial orientation (EO) and performance within not-for-profit (NFP) organizations. Through the development of a conceptual framework for understanding how EO may function within an NFP context, we propose three separate interaction effect models to examine organizational performance outcomes as measured in terms of high growth. Four conceptualizations of high growth are offered. Based on a theoretical consideration of social capital and financial accounting theory, we propose that NFP executives who possess a combination of EO and two other key factors, a social mission orientation and financial sustainability orientation, will be a strong predictor of high-growth organizational performance. The model thus builds upon previous research that explores the relationship between entrepreneurial behavior, market orientation and performance by distinguishing between market and non-market stakeholders and the need to balance between both when pursuing entrepreneurial opportunities.