Nonprofit Performance Research Articles

The impact of innovation management on the performance of NPOs: Applying the Tidd and Bessant model (2009)

AbstractThe literature is consistent in stating that innovation helps in improving the performance of nonprofit organizations (NPOs), highlighting how there remains the scope for further research designed to better understand the dimension supporting social innovation. Through the application of the Tidd and Bessant model, which reflects an important contribution to this specific sector, this study seeks to meet a shortcoming in analyzing just which innovation management factors influence the performance of NPOs. To this end, we applied a quantitative methodology based on a survey made of Portuguese NPOs that received a total of 135 valid responses. Based upon the application of multiple linear regression models, this study concludes that there are five innovation management models with a positive impact on NPO performance levels. In terms of the implications, these results, consistent with earlier research of a different nature, strengthen the idea that private business sector methods may undergo successful adaptation to the social sector and assist such entities to implement measures that offset their organizational, and consequent financial, weaknesses.

The PMO as Performance Driver for Non-Profit Organizations – From Operational Data to Strategic Goals

Aim/Purpose: The need to measure and report on performance is an acute necessity for any organization, especially non-profit organizations. However, measuring the impact of operations and projects on non-tangible goals can be challenging given the diversity of objectives and project structures adopted by these organizations. This paper proposes that the Project Management Office (PMO), as the central body for project excellence in an organization, takes an assertive role as one of the drivers of organizational performance, when adopting a KPI measuring strategy associated with the organizational strategic objectives. By adopting project operational indicators aligned with organizational strategy and the data derived from delivered projects, one can trace a direct relation between project data and strategic success. Besides the quantitative associations between project data and meeting organizational objectives, the author also briefly evaluates the contribution of qualitative, human aspects of project management to those objectives. Background: Since the early 90’s, the concept of project management offices (PMO) has been spreading and their implementation in organizations of different sizes and complexity is increasing significantly. There are several definitions and approaches to what a PMO is. The Association for Project Management defines it simply as “An organizational structure that provides support for projects, programs, and/or portfolios”. The Project Management Institute defines it as “An organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain”; while others define it as “The decision-enabling and support business model for all business changes in the organization”. Whatever view or definition is used, the PMO aims to enhance resource use and management, minimize project and program risks, as well as to re-engineer processes and internal structures that deal with the delivery of projects and programs. An organization that properly implements a PMO was found to be more effective. When well-integrated into the organizational structure, the PMO brings adequate control of an organization’s portfolio allowing focused investments that will contribute to the company’s performance reflected by leaner resource management, higher quality of products, and a more aggressive time-to-market strategy. This increment in performance, obtained from the investments in project management practices can lead to the rapid growth of the organization. Although the PMO's contribution to strategy can be seen through targeted measures, monitoring activities, and standardizing methods, the lack of empirical evidence of success is generally attributed to the lack of its recognition as a method for enhanced performance. This disconnection is even more evident when evaluating the performance of non-profit organizations, which usually lag in formal organizational structure and do not have a formal process to track and measure long-term benefits. This gap between the measured benefits of a PMO and the organizational strategic objectives is the primary motivation for this study where we propose a performance measurement method that links tangible outputs (project goals and objectives) to non-tangible benefits (the organization strategic objectives) defining organizational strategic KPIs focused on project and program performance. Methodology: The first step is to define the relationship between the five major areas of activities for the non-profit. These relationships are depicted in a Map of Impact Drivers for a fictional non-profit with the vision of improving the quality of life of poor communities. We then identify some KPIs, such as the number of projects completed, the number of services implemented, and the number of communities with active projects, to name a few. The mission to the impacts transforming all mapped activities into measurable quantities are then tabulated. Findings: A causal linkage map supported by a strong set of performance indicators for measuring financial and non-financial aspects of the organization's outputs is proposed. The choice of which indicators to be used is highly dependent on the organization’s goals and operations, to which the PMO must adapt to properly meet its monitoring goals. As such, the PMO becomes an intrinsic part of the organization’s effort to be more effective in achieving its strategic goals. This interdependence between the PMO and the other areas of the organization, especially human resources, implies that changes dictated by the PMO will directly affect other areas of the organization that also contribute to the overall performance.

The Study on Analysis of Research Trends on the Performance of Non-profit Organizations: Focused on Social Welfare

최근 비영리 조직이 확대되면서 비영리 조직이 이루어 낸 성과가 무엇인지, 그리고 성과를 어떻게 측정할 것인지에 대한 관심이 높아지고 있다. 본 연구는 이런 필요성을 토대로 기존 연구동향을 검토하여 사회복지분야를 중심으로 비영리 조직의 성과는 어떻게 정의할 수 있는지, 그것을 어떻게 측정할 것인지에 대한 연구의 방향성을 제시하고 있다. 분석 결과 한국에서 비영리 조직성과 연구는 2000년 이후에 본격적으로 시작되었다. 비영리 조직의 성과는 다양한 정의를 내릴 수 있지만, 비영리 조직의 가치나 정체성을 유지하는 것을 기본으로 하여 재정지원자나 제삼자가 이해할 수 있는 결과물로 나타내야 할 것이다. 또한, 비영리 조직의 성과측정은 포괄적 관점에서, 구체적으로 측정할 수 있는 양적 조사방법이 주류인 것으로 나타났다. 본 연구는 학문적 함의로서 비영리 조직의 성과와 성과측정 방법에 대한 논의를 고찰하여 향후 관련 연구의 방향성을 제시하였다. 그리고 실천적 함의로서 비영리 조직이 성과를 구체적으로 어떻게 정의하고 측정할 것인지에 대한 근거를 제공하였다.

Performance assessment for mathematics tutoring centres

AbstractEvaluation has become a common, and even an expected, practice across undergraduate mathematics tutoring centres in the USA, UK and other countries. However, these evaluation efforts could benefit greatly from leveraging organizational theory research. In this study, we situate mathematics tutoring centres as non-profit organizations (NPOs) to consider how an organization performance assessment framework can be adapted to study mathematics tutoring centre data and characteristics. We use qualitative and quantitative data, collected from six mathematics tutoring centres and adapt Lee & Nowell’s (2015, Am. J. Eval., 36, 299–319) NPO performance framework to situate our study. Using thematic analysis, the research team underwent iterative cycles of data collection and analysis to code for alignment with Lee and Nowell’s framework. By adapting Lee and Nowell’s framework to mathematics centres, each of the six centres was given a more relevant lens to consider its performance. Regardless of the university setting, previous evaluations for centres have focused primarily on outputs (e.g., number of visits), behavioural change outcomes (e.g., correlating visits to grades) and client satisfaction outcomes (e.g., student surveys) that ignore the particular context of a centre. However, Lee and Nowell’s framework takes into account additional performance indicators that provide a more nuanced understanding of a centre’s performance by bringing to light the interplay among its various dimensions. Lee and Nowell’s framework allows centres to look beyond outputs and outcomes to understand why these outputs and outcomes come to be. The use of this adapted performance framework, for the six mathematics centres in this study, allows an interpretation on a variety of dimensions using relevant data while indicating possible areas for change for each centre.

Leadership and Management in Non-Profit Organization: Perspective from Nigeria

Abstract: This study is set out to investigate “Leadership and management in nonprofit organization: perspective from Nigeria”. Relevant data were drawn from selected staff and managers from selected non-profit organizations in Lagos, using a wellstructured questionnaire. The result of the findings revealed that there is a significant impact of leadership on the performance of nonprofit organizations in Nigeria and that there is a significant relationship between management and the performance of nonprofit organizations in Nigeria and finally lack of funds and the current economic situation is a problem facing management and leadership of non-profit organizations in Nigeria. It was concluded that managers of non-profit organization must possess extra ordinary qualities of leadership to move their organizations forward. The study recommended that managers in non-profit organizations need to expand their leadership and management skill sets in order to strengthen the organizations and help effectively manage the running’s of these organizations.

Critical factors in capacity building of NGOs in the intellectual disability sector in India: PLS SEM modelling

PurposeMost of the services being delivered to persons with disabilities (PwDs) in India are through non-government organizations (NGOs). The quality and effectiveness for the delivery of services to PwDs largely depends on the capacity of the NGOs involved. This study attempts to understand the linkage between various capabilities of non-profits organizations working in the field of intellectual and developmental disabilities and their value creation.Design/methodology/approachUsing a mixed methodology, the study has conducted various interviews with the involved stakeholders and interviews to obtain a complete understanding and overcome the limitations of quantitative or qualitative approach alone.FindingsThe findings of this study exhibit that there is a significant and positive influence of financial capability, human resource capability, stakeholder capability, dynamic capability and collaboration capability on non-profit performance. However, knowledge capability has no effect on non-profit performance.Originality/valueThis study will help in making policies for policymakers in capacity building of NGOs. This research study is the first attempt in exploring the critical factors in capacity building of NGOs in the intellectual disability sector, particularly in India.

The characteristics of nonprofit performance measurement systems

The last ten years have seen a plethora of organisational studies related to nonprofit organisations (NPOs). Regarding performance measures, the initial approach of NPOs is to adapt models and processes developed in a for-profit context. The NPO performance measurement literature suggests that these models fail in addressing the unique characteristics of NPOs relating to their dynamic and complex environments. The research presented in this paper focus is on organisational performance related studies, and it covers private companies’ foundations, technological and professional institutes, and public or government agencies and departments. Ten cases were studied, and the results could not be generalised for NPOs but could be understood in the three different contexts and organisations studied. Foundations are strongly connected to their private supporter, and they are responsible for actions in terms of social responsibility and accountability. Independent institutes are project-oriented organisations that serve specific purposes that are defined by multiple stakeholders, and strongly influenced by the context in which they operate. Public service and government institutions have their operations ruled by an office term period institutional planning framework that deploys government programs and produces performance reports as they have high demands for transparency and accountability.

Organizational and social innovation in Non-Profit Organizations performance in the context of an emergent economy

Purpose: This study provides empirical evidence on the innovations that Nonprofit Organizations (NPOs) in Colombia have implemented within their own management to address social problems which are the object of their institutional mission.Design/methodology/approach: This research is based on information obtained from a survey applied to executives of Colombian NPOs. Multiple linear regression models were developed to check the partial effect of the set of independent variables (Organizational and Social Innovation) over the dependent variable (Organizational Performance). Main Components Analysis was applied to grouping the considered variables.Findings: Empirical evidence indicates that Colombian NPOs are innovative organizations that advisedly follow management strategies for this purpose. Colombian NPOs have been innovating for their disposition to tackle the social problems implicated in their institutional mission. Evidence indicates that the main components derived from NPOs’ organizational and social innovations are grouped into four: NPO innovation actions to adapt to the environment; internal innovation actions to improve NPO’s performance; variables related with NPO innovation actions to improve their relations with external agents; innovation actions aimed at improving the management of social interventions associated with the mission of the NPOs and the management of institutional projects.Research limitations/implications: The field work only used the survey technique to obtain the information and only assessed the perception of one of the directors of each of the NPOs participating in the study in terms of both the actions of organizational innovation such as social innovation and organizational performance. Therefore, the study undoubtedly presents bias in that perception.The technique used for the selection of the sample of the participants was a non-probabilistic sampling, which implies bias in the information and therefore, limitation for the generalization of the results to other contexts. The geographical location of the administration of the NPOs was restricted to Bogota and surrounding municipalities.Originality/value: An analysis of the relationship between social and organizational innovations with organizational performance in NPOs was carried out in the context of an emerging economy, where the subject has been very little studied and much less with principal component analysis. This in order to contribute to a better understanding of the subject.

Government Grants, Donors, and Nonprofit Performance

Abstract Nonprofits engaged in public service provision can receive funding from both donors and governments. Much of the nonprofit performance theory suggests that donors are unlikely to base donation decisions on nonprofit production. However, governments may prioritize performance in nonprofit funding decisions. We combine study internal production reports for the years 2010–2016 from 535 Habitat for Humanity Affiliates with financial data from IRS Form 990 reports and housing price data from the FHA. We then use a dynamic panel design to compare the effects of performance on donor and government funding. Production does not increase donations, but a 1% increase in production increases government grant revenue by 0.28%. Our findings indicate that nonprofit performance theory should move beyond the donor-nonprofit dyad and explicitly explore the role of government principals. Our findings also suggest that while requirements that accompany government funding might be cumbersome for nonprofits, government entities might use the data in future grant decisions.

What Happened?: An Examination of PLAYDATE, a Cellphone-Oriented, Neighborhood-Wide, Beyond-the-Stage Play in and About Downtown Brooklyn

PLAYDATE was a cellphone-oriented, neighborhood-wide, beyond-the-stage play. Through GoPro cameras, the performance documented a cast of roving players as they performed sequenced tasks that engaged local businesses, public facilities, and various contingencies in Downtown Brooklyn, New York. The main cast and the audience were physically separated and only viewable via social media and GPS. Posts were digitally projected in the auditorium of ISSUE Project Room, a non-profit performance venue in Downtown Brooklyn. Viewers, however, could interact with the piece through their own social media accounts. By submitting comments, questions, and likes through their cell phones, viewers became part of the work and created individual perspectives with no single vantage point. In this transcribed conversation led by PLAYDATE director, Ying Liu, two players[1] (Kuan-Yi Chen and Kenneth Pietrobono) and audience members (John Matturri and Seth Cohen) share their experience of the play to figure out “What Happened” in PLAYDATE. The director uses the term “player” to refer to the performers in PLAYDATE as it encompasses the idea of a “performer”–someone who takes direction or instruction from a director, as well as the concept of a “sportsman”–someone who responds and makes quick calls to different situations while adhering to the set direction.

Leader–Member Exchange and Employee Performance in Nonprofit Organizations

Nonprofit organizations are increasingly becoming more business-like in their approaches to leadership and management across the board. This has a number of effects, but perhaps one of the most important is that it has made business theories more applicable to the nonprofit sector. This is an opportunity to both expand on important business theory and provide insight into how nonprofits can improve leadership and management. Accordingly, the business leadership theory of leader–member exchange (LMX) was applied to the nonprofit context, specifically to human services nonprofits that serve people with disabilities. Through qualitative interviews and document collection, this study examined how LMX could be perceived to affect employee performance and how it could be perceived to affect leader–follower relationships. Three themes emerged for each of these questions: of loyalty, respect, and communication for the first and mutual respect and understanding, positive interactions, and communication for the second. These themes and their implications are discussed.

Social entrepreneurship orientation and performance in non-profit organizations

With the downturn in the global socioeconomic panorama, the social entrepreneurship orientation (SEO) and the social performance of non-profit organizations (NPOs) have become subject to growing levels of attention. The objective of this study is to analyze the influence of SEO on the performance of NPOs. To this end, we deployed a quantitative methodology based on the application of a survey of NPOs, which received a total of 135 valid responses. Our results demonstrate a positive effect for the dimensions of social innovation and social proactivity even while reporting no effect for the acceptance of social risks on performance. These results hold important implications across two different levels: in terms of the NPOs and policy-makers.

Founder or flounder: When board and founder relationship impact nonprofit performance

ABSTRACT This case study describes the complex relationships between nonprofit boards of directors and executive directors, especially when the executive director is the organization’s founder. The case takes the perspective of an MPA student, with limited professional experience, who is asked to serve on a board of a new nonprofit. It is an exciting opportunity; however, the student soon is overwhelmed as issues begin to arise in working with the organization’s founder. There are tensions between some board members and the founder regarding board roles, and questions arise around whether the nonprofit can survive. Teaching notes guide educators to broach topics including, but not limited to, board roles and responsibilities, nonprofit incorporation, performance measurement, board and executive director relationships, fiscal responsibility, and diversity, equity, and inclusion.

Does performance-based accountability impact how non-profit directors perceive organizational performance? Insights from rational planning

ABSTRACT Although the non-profit marketization literature argues that governments’ performance-based accountability demands can hinder non-profit organizational performance, the rational planning literature suggests a more positive yet indirect impact. To unravel the mechanisms at play for those steering their organization, we investigate (1) if performance-based accountability can alter how non-profit directors’ perceive organizational performance and (2) if such relationship is mediated by rational planning inspired practices. Results from structural equation modelling on two-wave survey data among 297 non-profit directors in Flemish non-profits confirm that management tool use and performance measurement are central in explaining how performance-based accountability impacts subjective performance.

비영리 조직(NPO) 전시회 개최사업의 성과측정 및 ROI 분석 연구

The purpose of this study is to measure the performance indicators and analyze ROI of non-profit organizations’ exhibition projects. Four key performance indicators were developed to measure the achievement of the purpose of the exhibition project, and the ROI analysis method of the exhibition was developed to conduct the performance analysis. According to the analysis, the non-profit organization's exhibition project is effective in achieving the business purpose of the non-profit organization and has good return on investment. Through strategic management of booth participant’s performance, it is necessary to strengthen the marketplace and networking function of the exhibition. This study is significant in that it is the first study to measure the performance of non-profit organizations’s exhibition projects and analyze ROI. In the future, it is necessary to expand and implement these studies in other areas of the nonprofit organization.

Performance measurement, evaluation and accountability in public philanthropic foundations

Philanthropic foundations routinely evaluate and measure the performance of nonprofit organisations to which they distribute funds, as well as the programmes that are funded. Another aspect of philanthropic foundations’ evaluation processes, which receives comparatively little attention within academic or practitioner literature, concerns evaluations of grant applications. While the focus of philanthropic evaluation literature is mainly on ‘how evaluation is done’, the focus of this article is on ‘how evaluation is understood’. This article details perspectives from interviews with 28 managers and trustees of Public Ancillary Funds as part of a wider study on the accountability of foundations. These public foundations must fundraise from the public, and donations to them are deductible against the taxable income of the donor, resulting in a significant element of accountability to the public for their effectiveness and evaluation of the distribution of their funds. Four main themes emerged through the exploration of how evaluation is understood from the perspective of these senior foundation leaders: motivations, values, criteria and processes of evaluation.

Linking Marketing to Nonprofit Performance

The critical role of marketing in driving nonprofit performance has been recognized for decades. However, in practice, there has been a disturbingly weak acknowledgment and/or implementation of marketing practices across nonprofits to date. Marketing is often perceived as an avoidable and costly overhead. The issue is complicated by the fact that nonprofit performance is relatively difficult to measure and may often comprise multiple tangible and intangible outcomes with different (linear and nonlinear) functional forms. Furthermore, nonprofit performance outcomes often depend on behavioral and attitudinal changes of the target segment. The authors address these challenges by presenting a methodology to link marketing efforts to nonprofits’ mission-based performance outcome(s). The authors apply their approach with data from a large nonprofit and find empirical support for the notion that marketing can play a pivotal and significant role in improving nonprofits’ mission-based performance outcomes. The findings help present a strong case for nonprofit leaders and policy makers to fund and treat marketing as a critical investment to drive nonprofit entities’ performance.

Performance measurement systems in nonprofit organizations: an authorship-based literature review

PurposeThis study aims to conduct a literature review on factors that influence the implementation and design of performance measurement systems in nonprofit organizations.Design/methodology/approachThe research strategy is conceived through a literature review focused on the analysis of authorship, supported by bibliometric techniques such as citation, co-citation and co-authorship social networks.FindingsModels and theories proposed for measuring performance in non-profit organizations are being researched, starting to form an intellectual structure related to performance measurement systems and nonprofits. Three main research topics have been given more attention: strategic performance and public service performance, health-care performance and nonprofit operations strategy and performance measurement.Research limitations/implicationsThe study is limited to scientific journal papers and could benefit from the addition of new sources of information such as conference papers, books and standards. The body of knowledge of this topic could also benefit from an in-depth investigation through a comprehensive review of models and theories, as a proposal for a future research agenda.Practical implicationsAs practical applications are identified, groups of researchers in different countries and subjects that can generate research agendas, scientific communities used to investigate issues related to performance in nonprofit activities.Originality/valuePerformance measurement in nonprofit organizations is a topic of study that has been receiving considerable attention in recent years, to the point that the literature is revealing specific models for measuring performance in this type of organizations. Particular models and theories are being conceived, specializing existing models and theories related to performance measurement and management.

Application of Ashby’s Law of Requisite Variety to Interorganizational Conflicts in Nonprofit Organizations

This study examines conflict that can co-determine the effectiveness of nonprofit organization performance. Based on Ashby’s law of requisite variety, interorganizational conflict is defined in terms of a lack of fit between input variety and variety-handling capabilities. The calculated organizational interaction effectiveness (IE) ratio of 2.04 is used to determine the quality of interactions. “Flexibility” is the dominant category for helpful incidents (49.03%). Within non-helpful incidents (45.67%), however, “Unreliability” is the dominant category. This major source of conflict commonly produces an imbalance between flexibility and reliability as manifest by a mismatch between input variety and variety-handling capabilities.

Social entrepreneurship and social innovation: looking inside the box and moving out of it

The impact of the global recession has served to increase the pressure on the management of nonprofit organizations (NPO). Executive leadership is an essential component of the success of these institutions. The aim of this paper is to survey the existing literature on social entrepreneurship and social innovation in the third sector (TS). For this, we used the collection of existing literature on the Web of Science (WoS). The 176 articles selected in this database were analyzed analytically and also using the VOSviewer software. The results show the existence of three approaches that highlight a relationship between entrepreneurial behavior and NPO performance, the creation of social value and the entrepreneurial orientation of NPO that triggered the emergence of hybrid organizations: social enterprises. This study aims to contribute to the construction of a holistic model for the sector.