Structural Isomorphism in Australian Nonprofit Organizations

This paper assesses the extent of structural similarity or isomorphism among nonprofit organizations in Australia. Based on neo-institutional theory, the paper explains such isomorphism in terms of these organizations subordination and dependency, the uncertainties they face, and the networks of experts of which they are a part. The analysis uses the nonprofit component of a 2001–2002 random sample of Australian employment organizations. It finds surprisingly little isomorphism in this subsample and few differences in isomorphism according to the level of the factors thought to produce similarity. The discussion of the findings focuses on the suitability of the nonprofit sector as the appropriate organizational field within which isomorphism involving these organizations is likely to be produced. Industries, which include all organizations that produce the same product or service, be they nonprofit, for-profit, or government, may be more appropriate interactional fields for the development of isomorphism.     

Pathways to sector selection: A conceptual framework for social enterprises

As hybrid organizations with financial and social objectives, social enterprises must balance competing logics for governance, stakeholders, and outcomes when considering organizational design and structure. The existing legal landscape for organizations exacerbates this dilemma by forcing social enterprises to incorporate as either a nonprofit or for‐profit organization. This research examines the entity formation process for social enterprises by presenting sector choice as an interaction among four factors: equity financing, organizational lineage, human capital, and funding environment. Using a qualitative comparative case analysis, this research demonstrates that contingent factors drive sector choice when legal incentives and institutional pressures are unclear. For those choosing nonprofit forms, the status of the parent organization—the organizational lineage—is determinative. For those operating in the for‐profit context, human capital is predictive. The resulting conceptual framework contributes to existing organizational theory on hybrid organizations by presenting the sector selection process as independent of the motives or legal incentives typically associated with sector choice. This research concludes with a discussion on the advantages of delaying the formal sector declaration process.     

Ethical dimensions of nonprofit administration

This article explains why ethics is a necessary and powerful aspect of organizational life and why the managerial ethics of executive responsibility is arguably the most important part of management. While ethical considerations in management are largely the same regardless of organizational type, there are some unique characteristics of nonprofit organizations that create a special ethical context for the nonprofit administrative role. This uniqueness, the immensity and organizational complexity of the American nonprofit sector, and the importance of ethical considerations in an increasingly amoral society, are grounds for giving more attention to this topic.     

Nonprofit Isomorphism: An Australia–United States Comparison

This paper examines the organizational structures of nonprofit organizations in Australia and the United States. Using random samples of nonprofits drawn from the two organizational populations, the analysis compares the extent of structural resemblance or isomorphism in each. It detects similar levels of isomorphism for several structural characteristics. The paper interprets this finding as reflecting expectations for nonprofit organizations that stretch worldwide.

Institutional isomorphism and nonprofit managerialism: For better or worse?

Nonprofit organizations (NPOs) have increasingly adopted business‐like practices as a response to institutional pressures. Some researchers argue that this development leads to mission drift, whereas others find a positive effect on organizational performance. However, the institutional pressures responsible for shaping the nonprofit sector have remained hard to distinguish from each other. This study explores the consequences of mimetic, normative, and coercive pressures, and looks at how they affect managerialism, organizational performance, and mission drift. We link these concepts through a structural equation model based on survey data and find that one aspect of managerialism, strategic behavior, is a key construct in influencing the response to isomorphic pressures and can positively affect organizational performance while holding off‐mission drift. Normative isomorphism even has a direct positive effect on organizational performance. Mission drift can take place when organizations are under coercive pressure without having strategies or internal processes in place. These findings imply that organizations should invest in their strategy and the professional development of their staff to increase organizational performance and avoid mission drift.     

Institutional Isomorphism in Religious Entities of Post‐Soviet Tajikistan

Grounded in institutional isomorphism theory, the paper analyzes the extent to which the process of homogenization (isomorphism) can be useful in our understanding of changes within religious entities. Examining the emergence and development of religious entities in post‐Soviet Tajikistan, I find that three isomorphic mechanisms are less dependent on the impact of religious institutional environments and interaction among religious organizations. Rather, isomorphic changes are manifested as the result of interaction with the state. Mimetic and normative processes are observed in a weak state, whereas coercive isomorphism is exerted under the influence of a strong state. A relative heterogeneity of the religious field is observed in the first two stages of the development of religious entities. Once the state expands its regulation and control, religious entities become more homogeneous in structure and administration due to coercive isomorphism. Implications for extending the concept of institutional isomorphism beyond traditional organizational fields are discussed.     

Growth and resilience of pioneering nonprofit human service organizations: a cross-case analysis of organizational histories

Knowledge of organizational history is important for recognizing patterns in effective management and understanding how organizations respond to internal and external challenges. This cross-case analysis of 12 histories of pioneering nonprofit human service organizations contributes an important longitudinal perspective on organizational history, complementing the cross-sectional case studies that dominate the existing research on nonprofit organizations. The literature on organizational growth, including lifecycle models and growth management, is reviewed, along with the literature on organizational resilience. Based on analysis of the 12 organizational histories, a conceptual model is presented that synthesizes key factors in the areas of leadership, internal operations, and external relations that influence organizational growth and resilience to enable nonprofit organizations to survive and thrive over time. Both cross-sectional and longitudinal examples from the organizational histories illustrate the conceptual map. The paper concludes with a discussion of directions for future research on nonprofit organizational history.     

Different while being similar: The dual institutional process and differential organizational status

Connecting the neoinstitutional theory with Bourdieu's field theory, we develop a framework on the dual institutional process of integration and differentiation in a field. While the neoinstitutional theory has focused on similar organizational structures, we shift the research focus to offer an institutional explanation of differential organizational status. Drawing insights from Bourdieu's theory and key concepts, we highlight that the very institutional mechanisms causing isomorphism—regulative forces, normative pressures, and cognitive processes—also generate systematic status differentiation among organizations via their different levels of capital, homologous structures, and various habitus in a field. Our extended framework has theoretical significance in advancing the neoinstitutional theory, the research of status in organizational and economic sociology, and the Bourdieusian perspective. By theorizing status differentiation among organizations, it also adds an important dimension to enrich our understanding of multilevel status and social hierarchies.     

Sociétés Coopératives d'Intérêt Collectif: The Arrival of Social Enterprise Within the French Social Economy

The French nonprofit sector has been in existence since July 1, 1901 when the legal form of associations was created. Since then, as a consequence of legal, fiscal, and cultural restrictions, it has developed characteristics that are markedly different to those of other nonprofit sectors. This paper focuses on one such characteristic that makes the French nonprofit sector virtually unique, that is the restrictions imposed on social entrepreneurism. It was not until July 17, 2001 that a new organizational form called Sociétés Coopératives d'Intérêt Collectif (SCIC) was created specifically to address this anomaly. This paper discusses the context within which this organizational form was created, and the potential advantages that it offers in respect to facilitating the development of social enterprises. The paper also explains why a specific organizational form was required and why it was placed outside the nonprofit sector. It concludes by identifying potential problems concerning organizational effectiveness in delivering socially beneficial services and the difficulties that may arise as a consequence of SCIC's unique governance structure.     

Organizational capacity and entrepreneurial behavior

In this research note, we examine the relationship between organizational capacity and entrepreneurial behavior in a global sample of 165 nonprofit organizations operating in a single, rapidly growing field of nonprofit activity. Our findings show a strong relationship between organizations' entrepreneurial behavior and levels of organizational capacity. We discuss our results relative to the importance of both organizational capacity and entrepreneurial behavior in a rapidly growing nonprofit subsector. The results contribute to the continued development and refinement of theoretical and empirical work on the causal links between organizational capacity and entrepreneurial behavior more generally.     

A Review of Models for Measuring Organizational Effectiveness Among For‐Profit and Nonprofit Organizations

Induced by unprecedented growth, invasion of for‐profit organizations in the nonprofit domain, and high‐profile cases of mismanagement in the nonprofit sector, a recent surge in the literature suggests ample opportunities for research to compare the organizational effectiveness of for‐profit and nonprofit organizations. This article presents a literature review of nonprofit organizational effectiveness from which four models of organizational effectiveness are selected. These models are discussed and analyzed because they apply to both for‐profit and nonprofit organizations.     

Understanding the Compensation of Nonprofit Executive Directors: Examining the Influence of Performance and Organizational Characteristics

In this study we aimed to provide a better understanding of executive compensation in nonprofit organizations. We examined factors including organizational size, market, subsector, organizational type, staffing level, and organizational performance as potential influences driving variation across the nonprofit sector. The models utilize data on the population of nonprofit organizations required to file Form 990 returns with the Internal Revenue Service in order to broadly examine compensation. The results indicate associations between various measures of performance and compensation in nonprofit orga‐nizations and also suggest that different types of nonprofits may be sensitive to different measures of performance.     

Understanding Nonprofit Advocacy in Non-Western Settings: A Framework and Empirical Evidence from Singapore

Research on nonprofit advocacy in non-Western settings is still rather limited. In this article, we address this limitation by examining the advocacy practices of nonprofit charitable organizations in Singapore, a non-liberal democratic city-state in Southeast Asia with a history of colonial rule. We ask the following questions: What are the key environmental and organizational factors that influence the scope and intensity of advocacy activities of nonprofit organizations? In particular, what is the effect of the political context on the advocacy strategies and tactics among these organizations? To answer these questions, we present a three-factor explanatory model of nonprofit advocacy incorporating cause, capacity, and context. The research methodology entails a survey of nonprofit executives from a random sample of Singapore human and social service organizations. Our findings shed light on how the various aspects of the political context—perceived opportunities and threats from government intervention and dependence on government funding—shape nonprofit advocacy in a non-Western setting.     

Merging nonprofit organizations: Analysis of a case study

This article presents a case study of merging among nonprofit organizations that provide social and community services. The study sheds light on the dynamics and problems of merging nonprofit organizations, whose espoused ideology focuses on promoting the well-being of their clients. The author describes and analyzes a merger in metropolitan Jerusalem, Israel, and highlights the potential problems that may ultimately undermine its success. This merger is the outcome of an ongoing power and political struggle. The analysis focuses on the organizational ideologies and culture as well as the strategies and structure of the merging organizations. In addition, the author deals with the underlying motives for merging, the driving and restraining forces, and the implications of merging nonprofit community services organizations with other social and human services organizations.     

Characteristics of Innovative Nonprofit Organizations in Argentina

The purpose of this study was to discover the characteristics of innovative organizations as perceived by employees of Argentine nonprofit organizations. The free listing technique, adapted from the field of cognitive anthropology, was used to achieve this task. Fifteen representatives of a variety of Argentinean nonprofit organizations participated in the study. Among the highest rated characteristics were: searching for new ways, solutions, and unconventional forms of work; adapting to new times; suggesting new forms for solving problems; and reflecting over organizational activities and actions. Rated as least characteristic were: encouraging role changes within teams; focusing on organizational mission; not being afraid of failure; and generosity (sharing information with other organizations).     

Exploring structure-effectiveness relationships in nonprofit arts organizations

The authors examined nineteen nonprofit performing arts organizations, investigating the distribution of influence among organizational members, the grouping of volunteers and staff in organizational structures, and the effectiveness of the organizations. The organizations' effectiveness was assessed using multiple performance indicators. The analysis revealed five groupings or configurations of influence, which correlated to the organizations exhibiting the highest and lowest levels of organizational effectiveness. The authors conclude that a variety of structures are associated with good performance but structural dysfunctions are associated with organizational failure, and that members' commitment to an organization's structure is an important element of success.     

Beyond Cans and Capacity

Many essential public services are provided through networks of community‐based nonprofit organizations. Previous research has demonstrated that simply providing additional resources to these organizations is insufficient to better address demands for public services. We also know little about how and why these organizations adopt network‐level objectives related to service provision. In this analysis, we expand the focus of service provision beyond capacity to incorporate the unique roles that define the very existence of nonprofit organizations, and how these roles affect organizational behavior with respect to service network objectives. We use focus group, survey, and administrative data from one hundred community‐based nonprofit organizations in an emergency food service network to explore the relationships among capacity, roles, and specific program objectives.     

The governance of nonprofit organizations: Law and public policy

Who should have the right to set the objectives of nonprofit organizations, hire their managers, set compensation standards, and in general control these organizations? Current law and public policy do not provide answers to these questions. Often, nonprofit organizations are controlled by managers and members of the boards of directors or trustees (many of whom are appointed by management). The goals of these individuals may not best serve the interests of those who support the operation of nonprofit organizations. This article proposes a legal and policy framework for empowering consumers, donors, and sponsors—those who have an economic demand for the nonprofit form of organization. The framework establishes a formal status of membership, accords standing in the court of law to members, enhances direct information dissemination by nonprofit organizations, and empowers state-sponsored agencies to support and oversee nonprofit organizations.     

Stakeholder Performance Measurement in Nonprofit Organizations

According to recent findings, nonprofit organizations should address the relationships of nonprofit service quality, satisfaction, loyalty, and organizational identification when planning and evaluating donor surveys. This article presents a donor satisfaction barometer that can be used to gain insights into the strength of these key relationships and thereby establish a basis for calculated relevant indices. With such indices, nonprofit organizations can compare stakeholder performance over time and benchmark themselves against other organizations. Data from 2,599 blood donors to one section of the German Red Cross, collected through the proposed donor satisfaction barometer, show that service quality drives satisfaction, and donor satisfaction and organizational identification both exert significant positive effects on donor loyalty. Therefore, nonprofit organizations should use a combined strategic approach that improves both donor satisfaction and organizational identification to increase donor loyalty. The successful application of the donor satisfaction barometer also suggests its value for other nonprofit industries and offers important insights for managers.     

On the same page: The value of paid and volunteer leaders sharing mental models in churches

We examine the idea that mental models shared among paid and volunteer leaders are associated with improved financial performance in nonprofit organizations. Our empirical analysis of thirty‐seven churches yields evidence that organizations are more effective if paid and volunteer leaders have a shared task mental model—that is, if they report similar conceptualizations of organizational goals and decision‐making processes. These findings suggest that the extent of leaders' agreement on organizational goals and the processes of how decisions are made matter for organizational performance. We argue that it is as important to ensure that everyone is on the same page with regard to goals and how decisions are made as it is to have the “right” goals or right decision processes in place. Implications for practice and future research on shared mental models are discussed.