Nonprofit Performance Research Articles

Exploring the Influence of Digital Transformation, Change Management, and Employee Engagement on Organizational Performance of Non Profit Organization in Indonesia

This study explores the influence of digital transformation, change management, and employee engagement on the organizational performance of nonprofit organizations in Indonesia. Using a quantitative approach with 250 respondents from various nonprofit sectors, the results indicate that all three factors significantly impact organizational performance. Change management emerges as the most influential variable and mediates the effects of digital transformation and employee engagement. These findings highlight the critical role of effective change management in ensuring that digital initiatives and employee engagement efforts translate into improved organizational outcomes. The study emphasizes the importance of strategic investments in technology, fostering employee engagement, and strong change management practices to enhance nonprofit performance. Recommendations for further research are also provided to expand the understanding of these relationships in different contexts.

A Function of Board Diversity? Does Diversity Equip Nonprofit Performance

Nonprofit boards receive plenty of advice about what they “should” do, but many fail to heed the guidance—perhaps due to limited resources, a failure to prioritize, or not realizing the critical linkage between board performance and organizational performance. This research examines diversity in board membership by linking board diversity to organizational performance. We utilize data from a large, representative national survey of nonprofit executives in the United States to examine the diversity of nonprofit boards in terms of visible diversity and inclusive behaviors and practices. Using regression analysis, we find diverse boards have more inclusive governance practices, and board diversity practices are positively related to nonprofit performance. These findings offer fresh evidence about why diversity matters relative to how boards function and their impact on fulfilling their organizational mission. This research contributes to how we think of diversity and inclusion in the nonprofit sector and why it matters beyond representational value.

Relationship Between Ethical Leadership and Job Performance in Non-Profit Organizations of Pakistan: Mediating Role of Psychological Safety

This study aims to investigate the effect of ethical leadership on employee job performance and to examine the role of psychological safety as a mediator of this relationship. The sample comprised 170 employees from various NGOs in the region through a simple random sampling technique. Data were collected using a structural closed-ended self-administered questionnaire. Both descriptive and inferential statistics were used as data analysis techniques. The findings of the study revealed that ethical leadership significantly improved the job performance of employees by promoting a safe, secure, and healthy working environment. Psychological safety also mediates the relationship between ethical leadership and job performance. This study is novel because it focuses on an understudied and challenging environment with dynamic and complex political and social environments.

The effect of supply chain integration, management commitment, and sustainable supply chain practices on non-profit organizations performance using SEM-FsQCA: Evidence from Afghanistan

This study explores the impact of supply chain integration, management commitment, and sustainable supply chain practices on the performance of non-profit organizations in Afghanistan. Using Structural Equation Modeling (SEM) and Fuzzy-set Qualitative Comparative Analysis (FsQCA) with 169 participants, it finds that supply chain integration enhances sustainable supply chain practices and overall performance. Management commitment improves sustainable supply chain practice, while supply chain challenges significantly affect organizational performance. FsQCA reveals key factors like sustainable supply chain practices and management commitment, highlighting their contribution to positive outcomes. Overcoming supply chain challenges within an integrated framework is crucial for non-profit performance enhancement.

Does Revenue Diversification Really Improve Mission Performance? Evidence from a Sample of Human Service Nonprofits

While our understanding of the relationships between revenue diversification and nonprofit financial health has deepened over the past three decades, little is known about the association between revenue diversification and nonprofit mission performance. Moreover, there is an ongoing debate as to whether revenue diversification hinders or improves nonprofit performance. Some expect performance improvement from diversification strategies, while others contend that concentration strategies drive performance. This study aims to fill this research gap by investigating the effect of revenue diversification on nonprofit managers’ perceived mission performance. Using data from a sample of Taiwan’s human service nonprofits collected in 2020, we estimate relationships with regressions, employing a more detailed measure of organizational performance and various revenue diversification measurements. The results suggest that revenue diversification is positively associated with nonprofit managers’ perceived mission performance. This study further discusses theoretical contributions to the literature and practical implications for human service nonprofit organizations.

The moderating role of organizational sub-sectors on the relationship between CEO duality and nonprofit performance

The moderating role of organizational sub-sectors on the relationship between CEO duality and nonprofit performance

The Influence of Organizational Culture on Organizational Performance with Organizational Commitment and Leadership as Mediation

This study aims to determine the relationship between organizational culture, organizational commitment and leadership that can affect organizational performance in non-profit organizations. This research uses a quantitative approach using the PLS (Partial Least Square) based SEM (Structural Equation Model) method using SmartPLS 3.0 software. The sample in this study were employees of the Ministry of Education and Culture. The data collection technique for this research uses a questionnaire. The variables used in this study are organizational culture, organizational commitment, leadership, and organizational performance. The results of this study include organizational culture and leadership directly on organizational performance, while leadership can significantly increase the influence of organizational culture on company performance. In addition, organizational commitment is known to have no significant effect on organizational performance and cannot increase the influence of organizational culture on organizational performance. In this study, it is suggested that stakeholders for the Ministry of Education and Culture can increase their attention to factors that can affect the improvement of organizational performance, especially organizational culture and leadership.

Measuring Sustainability Performance in Non-profit Organizations in the Kingdom of Saudi Arabia

Measuring Sustainability Performance in Non-profit Organizations in the Kingdom of Saudi Arabia

Entrepreneurial orientation and performance in nonprofit organizations: A meta‐analysis

AbstractThis meta‐analysis examines the state of research on the relationship between entrepreneurial orientation (EO) and performance in nonprofit organizations (NPOs). The evidence on this relationship in the business context is already well consolidated. Nonprofit research also elaborated review publications on EO. However, existing knowledge lacks an examination of the EO–performance relationship in NPOs. This study includes 25 publications in the correlation‐based meta‐analysis and finds that various performance goals are positively affected. Nonetheless, the results reveal several inconsistencies regarding conceptual and methodological approaches. A critical reflection on the complexity and differentiation of both constructs, problems of bias, and the causal character of the relationship addresses these issues.

Coopetition and Non-Profit Performance in War-Torn Region: Role of Outside Knowledge and Innovative Climate

The inconsistent findings on the association between non-profit coopetition and performance are complicated and contingent on essential factors. However, our current understanding of the circumstances under which non-profit coopetition matters to performance is limited. We take a novel context to address this question and build on the combined literature from the emerging non-profit coopetition literature. This study conceptualises and tests the impact of coopetition (simultaneous cooperation and competition) on the organisational performance of non-profit organisations in a war-torn region. Notably, it investigates the simultaneous cooperation and competition in non-profits' social and financial performance via outside knowledge and innovative climate. An in-person survey with 158 executives and board members was conducted in Baghdad Governorate, Iraq. The survey adopted reliable and valid scales to measure the variables. Structural equation modelling was applied to test the mediation model. The proposed sequential mediating model has a good model fit with all four hypotheses statistically significant. Non-profit engagement in coopetition positively affects organisation performance via mediators: use of outside knowledge and innovative climate. Cooperation with competitors helps non-profits to effectively use the outside knowledge that forms an innovative climate at the organisational level. Additionally, the use of outside knowledge has a direct effect on performance. Non-profits should integrate outside and internal knowledge to generate sustainable financial and social performance opportunities, especially in turbulent or war-torn regions. Moreover, context is imperative for non-profit leaders to identify themselves and seek inter-organisational relationships. The study also provides theoretical and practical implications that help non-profit leaders innovate and increase organisational performance.

Tracing the effect of the paycheck protection program on nonprofit capacity to sustain payroll and services during COVID‐19

AbstractThis study explores the effect of government fiscal stimulus on nonprofit performance during the COVID‐19 pandemic. More specifically, it investigates whether access to the Paycheck Protection Program (PPP) increased the ability of nonprofit organizations operating in the crisis context conditions to continue supplying funds for payroll and maintain effective delivery of services and programs after the initial revenue shock. The study findings are derived from the analysis of survey data collected from 160 Wisconsin nonprofit organizations in July and August 2020 linked to publicly available Internal Revenue Service tax filings. Regression analysis reveals a strong positive connection between the PPP loans and the nonprofit capacity to continue funding payroll and providing services within the next months of the pandemic. The empirical results suggest that the government stimulus policies offering direct economic assistance can indeed contribute to the continuity of nonprofit services and payroll in times of fiscal uncertainty, albeit the policy may not yield equally significant results across all types of organizations. This study increases the understanding of nonprofit performance during an extended revenue crisis, offering answers to policymakers, researchers, and practitioners interested in learning more about the efficacy of federal stimulus funding in enabling private organizations to mitigate the financial consequences of the COVID‐19 crisis.

Quality of Management Processes as a Determinant of NGOs‘ Sustainability

Abstract The quality of management processes and performance of non-profit organizations in the region are the essential prerequisites for increasing the sustainability of social support through NGOs. The paper summarizes the results of the evaluation study based on the Plan-Do-Contoll-Act (PDCA) cycle analysis. The quality of management processes was self-evaluated on the basis of the analysis of the PDCA cycle in 79 NGOs, which took place in the 2015–2019 with the recipients of social support subsidies of the South Moravian Region administration. A composite indicator was designed to compare the overall level of management quality of participating NGOs. Results identified significant room for improvement in planning, fundraising, management of work with volunteers, and systematic use of data to improve NGOs‘ performance. Based on the understanding of the current level of the quality management processes, recommendations for enhancing the sustainability of NGOs and the efficiency of regional support are derived.

Strategic Management Practices and Performance of Non Profit Organizations: A Case of Food for Hungry in Rwanda Nyagatare District

Strategic Management Practices and Performance of Non Profit Organizations: A Case of Food for Hungry in Rwanda Nyagatare District

Strategic Management Practices and Performance of Non-Profit Organizations; A Case of Care International Rwanda

Strategic Management Practices and Performance of Non-Profit Organizations; A Case of Care International Rwanda

Strategic Management Practices and Performance of Non Profit Organizations: A Case of Food for Hungry in Rwanda Nyagatare District

Strategic Management Practices and Performance of Non Profit Organizations: A Case of Food for Hungry in Rwanda Nyagatare District

The role of board skepticism in strengthening nonprofit performance measurement and accountability

AbstractWe interviewed 21 board chairs of nonprofits with social missions to ask how their organizations assess performance when they cannot adequately track the intangible work by employees or the outcomes of this work. We find that the uncertainty around tracking performance data makes boards skeptical of their ability to assess performance in these organizations. Our study suggests that the skepticism of these boards inspires effective strategies focused on decreasing uncertainty around performance. These strategies include tracking a combination of quantified data, process data, and narratives from employees and clients, and ensuring specific board processes that foster a psychologically safe environment for discussion and checking against cognitive biases. We find boards in these organizations to be aware, engaged, and effective at assessing performance and we suggest that policy makers can be better informed by accessing the knowledge and strategy used by these boards.

The role of market orientation in the performance of NPOs

With the downturn in the global socioeconomic panorama, the market orientation (MO) and the performance of non-profit organisations (NPOs) have come in for growing levels of attention. However, authors remain unanimous in emphasising the scope there remains for further research designed to better understand the role of MO on the performances achieved by NPOs. The objective of this research is thus to analyse the influence of MO on the performance standards of NPOs. To this end, we deployed a quantitative methodology based on the application of a survey of NPOs that received a total of 135 valid responses. The results demonstrate a statistically significant positive effect on the dimensions of orientation towards users, towards the competition, the incentive system even while the effect of inter-functional coordination lacks in significance. Despite the data collection having taken place at a particular moment in time, in the midst of the COVID-19 pandemic, which significantly hindered this process and correspondingly preventing this study from attaining still greater representativeness, our results serve to strengthen the theory and practice on market orientation in NPOs. The research results also generate important implications across two levels: at the NPO level and for their decision-makers; it also deepens knowledge on this theme and helps to complete a gap found in the existing literature. In terms of practice, this contributes to NPO managers and policy makers to grasp how MO is not a phenomenon exclusive to the private sector but also extends across the non-profit sector.

Do Charities Clarify or Conceal? Text Complexity and the Financial Performance of Large Nonprofits

Do Charities Clarify or Conceal? Text Complexity and the Financial Performance of Large Nonprofits

The benefits of nonprofit reputation: Government funding, nonprofit performance, and nonprofit reputational gains

AbstractReputation is a valuable intangible resource whose role in public–nonprofit collaborations remains unexplored. Does nonprofit reputation influence government funding and nonprofit performance? Does nonprofit performance enhance nonprofit reputational gains? Our identification strategy adopts panel regression methods to assess whether nonprofit reputation influences government funding and nonprofit performance in 675 collaborations between the Brazilian Ministry of Health (MoH) and 60 nonprofit hospitals from 2012 to 2019. Our results indicate that reputable nonprofit hospitals receive more government funding, hire more staff and achieve higher levels of production. This research also suggests a virtuous cycle: Better nonprofit performance leads to nonprofit reputational gains in official rankings. We thus contribute to reputation and public–nonprofit collaboration scholarship by empirically examining the role of nonprofit reputation in public–nonprofit collaborations and identifying mediators of the nonprofit reputation–performance link while responding to calls for more panel data analyses.

Which stakeholder matters: overall performance and contingency in nonprofit organizations

This article seeks to further the literature on the importance of stakeholders in the overall performance of nonprofit organizations. Specifically, in the French context, the effect of each type of stakeholder has to be studied. The stakeholders of nonprofit organizations (NPOs) indeed correspond to their environment, which is uncertain, unpredictable, complex, and sometimes hostile. Using French NPO reports and disclosures about their performance, multiple regressions establish the various effects of stakeholder consideration, which are heterogeneous, variable, and more or less positive. The results confirm the theoretical framework proposed from the contingent approach and the agency, stakeholders, resource dependency, and stewardship theories. The article thus defends a contingent view of performance and the importance of taking organizational characteristics into account when making decisions. Moreover, while the normative approach of stakeholder theory is important, it must be nuanced according to the nuisance power of stakeholders (which corresponds to the instrumental approach). To do this, stakeholders must be differentiated and prioritized (especially in terms of resources). The results also highlight an optimistic view of cooperation between sectors, whereas fears of negative isomorphisms are often highlighted. In short, this research calls for a nuance in best practices, in favor of adapting them to each NPO according to the organizational context.