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.     

The Pyramid of Nonprofit Responsibility: The Institutionalization of Organizational Responsibility Across Sectors

Observers have noted that organizations in all sectors, whether business, nonprofit, or government, have been moving toward rationalized structures that presuppose and express empowered organizational actorhood. We draw upon neo-institutional theory in this paper to extend the argument: The arrival of organizational actorhood has precipitated a concomitant, cross-sectoral movement toward organizational social responsibility. Whereas existing research has tended to theorize the social responsibilities of businesses, we develop a pyramid conceptual schema to array the social responsibilities of nonprofits. We then document the coevolution of organizational actorhood and responsibility across both sectors with a metastudy of nearly 200 extant surveys. We chart the institutionalization of a slate of formal structures that express organizational actorhood (i.e., mission statements, vision statements, and strategic plans) and that profess and define organizational social responsibilities (i.e., core values, ethics codes, and responsibility communications). We close with implications and future directions for organizational studies and research on corporate social responsibility.     

Social capital and nonprofit leaders

The concept of social capital seems to be a very compatible, useful, and important one for nonprofit organizations. Nonprofits must sustain and enhance the original social capital with which they were formed and broaden it into a variety of key areas. Nonprofits and their leaders must foster social capital in order to recruit and develop board members, raise philanthropic support, develop strategic partnerships, engage in advocacy, enhance community relations, and create a shared strategic vision and mission within the organization and its employees. Nonprofit executives have a pivotal role in carrying out these functions, but they do so through relationships and networks with others. These activities are time‐consuming and demanding, and they require planning. This article provides a focused literature analysis on the concept of social capital as it applies to nonprofit management and leadership. The author views the literature with respect to definitions of social capital and the way nonprofits generate and mobilize social capital in order to achieve organizational goals. The author also cites methods for measuring social capital.     

The process is the plan: defining strategic community futures

This case study describes the application and assessment of a community-based strategic planning model to a faith-based organization. The United Jewish Communities of MetroWest New Jersey is responsible for programming, raising and allocating funds to serve a mission both global and local. A board-sanctioned process opened planning and allocations to a broader audience of community and service agencies, resulting in both dynamic synergy and conflict for the organization and its beneficiaries. This article looks at how a more strategic and inclusive planning process shaped decision-making and program evaluation. With input from professional staff and lay leadership, we consider lessons learned in the context of profound challenges facing non-profit, philanthropy-dependent organizations.     

Exploring the Connection Between Organizational Identity and Public Relations Behaviors: How Symmetry Trumps Conservation in Engendering Organizational Identification

One way for organizations to survive in the increasingly complex and competitive world may be to maintain or “conserve” a strong organizational identity, which often is expressed in organizational mission statements. Framed by literature in business communication, university development, and public relations behaviors (formerly public relations models), this article explores how organizations may use public relations behaviors to create, maintain, and strengthen their identities. Findings indicated that, in the effort to engender stakeholder identification with their organizations, public relations practitioners are better served attempting to do so using symmetrical communication, as opposed to conserving communication.     

Engaging stakeholders through social networking: How nonprofit organizations are using Facebook

Since social networking sites, such as MySpace and Facebook, began allowing organizations to create profiles and become active members, organizations have started incorporating these strategies into their public relations programming. For-profit organizations have used these sites to help launch products and strengthen their existing brands; however, little is known about how nonprofit organizations are taking advantage of the social networking popularity. Through a content analysis of 275 nonprofit organization profiles on Facebook, this study examines how these new social networking sites are being used by the organizations to advance their organization's mission and programs. Solely having a profile will not in itself increase awareness or trigger an influx of participation. Instead careful planning and research will greatly benefit nonprofits as they attempt to develop social networking relationships with their stakeholders.     

Board performance and organizational effectiveness in nonprofit social services organizations

This article examines the tasks and responsibilities of nonprofit boards of directors and explores the relationship between board performance and organizational effectiveness. Thirty-three activities in nine areas of board responsibility were examined through questionnaires and interviews with board members and chief executive officers of sixteen nonprofit organizations serving developmentally disabled adults. Rankings of organizational effectiveness were determined using external evaluators and accreditation surveys. A significant relationship between board performance and organizational effectiveness was found, and the board activities most strongly correlated with organizational effectiveness are reported, including policy formation, strategic planning, program monitoring, financial planning and control, resource development, board development, and dispute resolution.     

Exploring the Adaptive Capacities of Shared Jewish–Arab Organizations in Israel

Nonprofits have unique strategic concerns, including their dependence on external resources, the management of multiple stakeholders, perceptions about their organizational legitimacy as well as their primary focus on the social value of their organizational mission (Stone and Brush 1996). For shared Jewish–Arab organizations in Israel that are seeking to promote a ‘shared society,’ the obstacles in navigating these various challenges are particularly pronounced and require a very unique kind of adaptive capacity (see Letts et al. 1999; Connolly and York 2003; Strichman et al. 2007). Often operating outside of the general consensus, these organizations are faced with the significant challenge of promoting values of partnership, equality and mutual interests among two populations that are often at odds. This research seeks to shed light on how shared Arab–Jewish nonprofits are continually working to strengthen organizational capacities to more effectively carry out their particular organizational mission, given the myriad of challenges they face.     

Organizational Characteristics of Voluntary Associations in Kanagawa, Japan

The purpose of this paper is to define the organizational characteristics of voluntary associations and grass-roots organizations (NPO) in Japan by a quantitative survey and by clarifying their organizational structures. First, with respect to formalization of the organization, it appears that the differences in the scale of the organization are greater than the fields and forms of the activities. If the scale is related to the degree of formalization, we can consider that the "invisibility" which describes the present situation of voluntary associations as a result of being small. However, if we look at the changes in the organizational structure and their activities, one will know such a result is not always true. Over 80% of the organizations have begun new activities. As the structures of the organizations change, we cannot conclude that the voluntary associations are merely immature. More likely, the action of the formalizing process depending on the organizational scale competes with the action of changing the definition of formalization. Second, when we analyzed the actual situation of the innovation, we discovered that the emergence of the new activities was related to whether and how strongly they related externally. Particularly, in the case of providing human and social welfare services, the stronger the relationship with the caretaker (client) is, the more new activities emerge. If so, this leads to the next hypothesis, that the origins of the innovation in these organizations are demanded by what the external relationship should be.     

Shaping Street-Children Organizations Across the Americas

Abstract

Covenant House, a non-governmental, social action organization assisting homeless children in the United States is compared and contrasted with its Latin American counterpart organization, Casa Alianza, which services street-living and street-working children throughout Mexico and Central America. Although Covenant House and Casa Alianza share a common mission: to protect children and guarantee their rights through promoting social justice, clear differences in organizational structure, program philosophy, intervention techniques and client characteristics are evident ltural contexts within which both organizations are embedded reveals how surrounding macrofactors can influence and uniquely shape social action organizations in their efforts to develop and deliver systematic and indigenous responses to the homeless, street-children population throughout the Americas.     

Back to Basics

Nonprofits are under increased accountability pressures to demonstrate their effectiveness. Output measurement (how much is produced) is disregarded as simplistic. Emphasis is made instead on measuring outcomes (changes in the lives of beneficiaries) or impacts (effects developed relative to the mission of the nonprofit, or the overall public good), and a growing portion of organizations state that they measure these effects. However, we question the assumption that outputs such as the number of beneficiaries served are being adequately measured. We first review existing research gaps on results measurement practices and discuss the main types of obstacles to the quality and utility of evaluation data. In this context, we argue for the need to reground nonprofit evaluation in the profound knowledge available about beneficiary populations. We discuss the potential and limitations of reach, a basic output indicator that is defined as the number of individuals directly affected by a nonprofit, and explore the organizational drivers of reach measurement. Evidence from 2,229 nonprofits shows they still lack adequate data on the beneficiaries they serve, face relevant conceptual and practical hurdles when trying to identify them, and are significantly influenced by organizational factors in their capacity to track them. Our research not only shows that nonprofits fail to adequately measure outputs, but also that measuring the number of beneficiaries served and how they are served is not as straightforward as outcome and impact advocates suggest. Practitioners and funders are reminded of the need to place beneficiaries at the core of their evaluation efforts.     

Surviving mission drift: How charities can turn dependence on government contract funding to their own advantage

The widespread contracting out to British charities of welfare services previously furnished by the state has resulted in many charities operating in fields well outside those specified by their original missions. Challenges connected with charity mission drift have received a great deal of (mainly negative and critical) attention in the nonprofit practitioner literature in recent years, yet no academic research has been completed into exactly how charities respond managerially and operationally to government‐induced mission drift. This empirical study attempted to fill this important gap in knowledge about charity management through in‐depth case studies of three charities known to have experienced substantial mission drift during the last decade, focusing on the styles and types of approach the organizations had adopted in their dealings with government funding agencies. It emerged that the three charities accepted mission drift as a fact of life. Rather than simply supplying contract services to government bodies, the charities were highly proactive in seeking to initiate, direct, control, and assume overall strategic responsibility for state‐funded activities.     

Organizations as the building blocks of social inequalities

Most contemporary inequalities emerge in and are constituted through organizations. In this article, we review research at the intersection of organizations and inequalities, bringing the organizational literature and social stratification literature into conversation with one another. In doing so, we outline an emerging theoretical perspective, Relational Inequality Theory (RIT), that helps to make sense of how inequalities emerge within and between organizations. RIT places social relations within organizational contexts as constitutive of inequalities in access to organizational resources such as income, jobs, and respect. Much research supports theorizing inequalities as emerging through social relations within organizations, and we suggest comparative organizational designs as the key methodological strategy to study organizational inequalities.     

ENTREPRENEURIAL SOCIAL INFRASTRUCTURE AND LOCALLY INITIATED ECONOMIC DEVELOPMENT IN THE NONMETROPOLITAN UNITED STATES

A community embeddedness perspective hypothesizes that nonmetropolitan localities high on entrepreneurial social infrastructure (ESI) are more successful at implementing economic development projects than those lacking ESI. ESI is a format for converting social capital into organizational forms that facilitate collective action. Logistic regression revealed that localities with projects were more likely to have an unbiased newspaper, multiple contributions by financial institutions to community projects, and more external linkages, Project communities place more emphasis on citizen involvement through civic organizations than through local government. Community-based patterns of interactions and organization are associated with successful collective economic development action.     

WWW.FAITH.ORG (Re)structuring communication and the social capital of religious organizations

This paper examines the relationships between Internet and social capital building within religious organizations, which are relatively understudied foci. Building upon theoretical insights provided by new institutionalism and recent research on the Internet, social capital and religion, this article explores the ways in which religious organizations have (re)structured their norms, values, and practices of religious community in light of the incorporation of the Internet into their congregational life. Drawing from interviews conducted with Christian and Buddhist religious leaders in Toronto, this article discusses three major relationships in which the effects of the Internet on social capital may be understood, that is, complementary, transformative, and perverse relationships. Religious organizations are traditionally associated with relatively high stocks of social capital, yet findings here suggest that their communicative norms, values, and practices are changing to a varying extent. The results also indicate that the relationship between the Internet and social capital building is largely complementary; however, the Internet is perceived by some to be a 'mixed blessing', facilitating the potential transformation of organizational practices that affect community norms while leading to the dispersion of religious ties that could undermine community solidarity. Thus, contrary to earlier studies that have documented no evidence of innovations involving the reconfiguration of organizational practices and the adjustment of mission or services, findings here illustrate how some religious organizations have expanded the scope of their calling and restructured their communicative practices to spur administrative and operational effectiveness. Like other organizations, religious organizations are not insulated from technological changes including those associated with the Internet. This study clarifies and identifies key ways in which the distinct spirituality, cultural values, and institutional practices and norms of religious organizations influence communication processes that constitute bridging and bonding forms of social capital in this dot.org era of faith.     

Bottom-up social enterprises in Romania. Case study – Retirees’ Mutual Aid Association

The purpose of this article is to present and analyze the organizational profile and distinctive development pattern of a successful bottom-up social enterprise in Romania, namely, the Retirees’ Mutual Aid Association (RMAA). Romania has recently rediscovered the world of social economy which brings together various organizations, from associations and foundations to cooperatives and commons, sharing a common interest in developing entrepreneurial activities to support social goals. In an ideological and public policy context which holds back the opening of the public market to the third sector and social economy actors, setting and running up such organizations remains a challenge. On the other hand, the isomorphic pressure exerted by the EU has resulted in a type of legislation targeted at social enterprises which focuses almost exclusively on work integration social enterprises. Nonetheless, Romania also features social enterprises that are not externally driven but developed bottom-up, starting from the needs of their members and of the communities in which they are established and developed. Using the data of extensive research conducted on social economy entities in Romania, we will present an organizational case study of a successful bottom-up social enterprise, namely RMAA.     

Communicating Engagement in Corporate Social Responsibility: A Meta-Level Construal of Engagement

Organizations are increasingly seeking stakeholder support through engagement to demonstrate their corporate social responsibility (CSR) credentials. These credentials are, in turn, used to support claims of legitimacy for organizational operations. This article uses a process model of antecedents, implementation, and consequences to study the connection between engagement and CSR. CSR reports show organizations perceive engagement in CSR as both communication and activities between organizations and their stakeholders; and as a second, meta-level of communication about that engagement with stakeholders beyond those directly involved, thereby broadening the scope of organizational claims to legitimacy. Understanding what engagement is and how and why it is carried out in CSR provides a framework for understanding engagement in public relations.     

Organizational theory in political sociology

Organizational theory and research has been enormously generative for political sociologists, if not always as fully centered as it might be, relative to broader notions of political power, economic resources, culture, and their interplay. This review both calls attention to the ways that organizational theory continues to inform political sociology and sets an agenda for how this interchange can be productively extended in various ways in scholarship on states, political parties, advocacy organizations, and business influences in politics. I highlight the genealogy of the new institutionalism and its variants (World Polity and institutional logics), population ecology (and the growing interest in both categories and audiences, alongside studies of the “ecology of ideology”), and research that follows in the broad tradition of resource dependence theory (and the link to more management-oriented approaches such as “non-market strategy” and stakeholder theories of organizational political activities). I also emphasize how novel theories of social movements and fields have offered innovative insights that incorporate organizational and political processes. I conclude by elaborating an agenda for how political sociologists can go further in maintaining and extending their highly productive and rewarding engagements with organizational theory.     

Stakeholder Communication in 140 Characters or Less: A Study of Community Sport Foundations

Community sport foundations (CSFs), like other non-profit organizations, are increasingly employing social media such as Twitter to communicate their mission and activities to their diverse stakeholder groups. However, the way these CSFs utilize social media for communicating such practices remains unclear. Through a mixed-method approach of content analysis of tweets from 22 CSFs established by English professional football clubs and interviews with key individuals within these CSFs (n = 7), this study examines the extent to which CSFs’ core activities are being communicated through Twitter and identifies the strategies employed for doing so. Reflecting the target audiences CSFs are seeking to reach through Twitter and the challenges associated with communication about projects involving marginalized groups, tweets largely concern programs related to sports participation and education. The most frequently employed communication strategy is to inform, rather than interact or engage with stakeholders. However, CSFs with higher organizational capacity attempt to go beyond mere informing towards engaging with stakeholder groups that relate to their social agenda, highlighting the importance of trained and dedicated social media personnel in optimizing CSFs’ use of Twitter for communication.     

Promoting social innovation amidst organizational complexity: Case study evidence from the German Red Cross

Social innovation is concerned with the creation and implementation of new solutions to social problems. Although research commonly frames social innovation as the domain of small, entrepreneurial organizations, an increasing number of large and well-established nonprofit organizations have started actively launching their own innovation initiatives. Using a case study of social innovation ventures within the German Red Cross (GRC), this study identifies organizational hurdles and viable management strategies targeting the promotion of social innovation within particularly complex organizations. Based on our results, we develop a conceptual framework highlighting that promoting social innovation in established organizations requires simultaneous attention to multiple dimensions of leadership and governance. Our study thereby offers a blueprint for management strategies that can guide nonprofit leaders in their quest to promote social innovation from within their organization.