Inclusion and commitment as key pathways between leadership and nonprofit performance

Given the projected growth of workforce diversity in the United States and the fact that heterogeneous workforces result in both positive (increased retention and performance) and negative (increased conflict and turnover) organizational outcomes, nonprofit leaders are faced with the challenge of effectively managing their workforces. Findings ways to ensure positive workplace outcomes, such as employee commitment (an emotional attachment to the organization) and performance, is especially critical for the overall functioning of nonprofit organizations. Using longitudinal multilevel path analyses, this study examined whether transformational leadership influenced work group performance through both creating a climate for inclusion and increasing employee affective commitment in a diverse nonprofit health care organization. Results indicate that transformational leaders help increase perceptions of inclusion, which improves employee commitment to the organization, and ultimately enhances perceived work group performance. This suggests inclusion and affective commitment as key factors for how leaders can increase nonprofit performance.     

Leadership in faith‐based nonprofits

This case study illustrates the unique challenges of leading a faith‐based nonprofit organization within a multifaith constituency in Asia. The core themes of the case are based on research conducted with the staff, executive team, and board members of an international faith‐based nonprofit organization in Asia. Specifically, the case focuses on three identity‐based leadership dilemmas in relation to (1) creating a shared sense of organizational identity, (2) talent management, and (3) board governance. By describing the challenges faced by the CEO, the case shows how a strong faith‐based identification can positively bind an organization together, but also result in organizational blind spots with unintended consequences.     

Transformational leadership,organizational culture,and innovativeness in nonprofit organizations

This is an exploratory study of leadership, organizational culture, and organizational innovativeness in a sample of nonprofit human service organizations: Associations of Retarded Citizens. Although leadership has been held out as one of the most important predictors of innovation, this study found it was not correlated with organizational innovativeness. Examination of the relationships between leadership and cultural variables provided some alternative explanations for this finding. Positive relationships among transformational leadership, organizational values, and cultural consensus (degree of agreement among employees on those values) indicate that leadership practices employed in this sample created strong cultural consensus around values that may inhibit innovation. These findings suggest that examining the link between leadership and organizational culture is important for understanding how leadership and innovation are related. This article sets out practical implications, based on the results of the study, that may help nonprofit managers create workplaces supportive of innovation.     

Exploring a model of servant leadership,empowerment, and commitment in nonprofit organizations

This study examined a model of servant leadership's relationship to organizational commitment through structural and psychological empowerment, focusing on leader–follower dyads in a nonprofit organization. Survey data was collected from 128 employees of a nonprofit organization in a northeastern U.S. city. After model re‐specification, a well‐fitting model emerged, indicating that structural empowerment mediates the relationship between servant leadership and organizational commitment. Moreover, the model suggests that structural empowerment's effect on organizational commitment is both direct and indirect—the latter occurring through the meaning dimension of psychological empowerment. This study provides initial support for structural empowerment being a mechanism through which servant leadership impacts organizational commitment in nonprofits. In addition, the role of meaningful work is highlighted as an antecedent to organizational commitment for nonprofit employees. Servant leaders are suggested to create structurally empowering working environments, which support employees' stronger commitment to the organization.     

Organizational innovativeness and its determinants in South Korean nonprofit human service organizations

This study compares the level of organizational innovativeness and its determinants in different types of nonprofit human service organizations. Based on theoretical conceptualizations of organizational innovation, it was hypothesized that community service organizations (CSOs) would be more innovative than residential service organizations (RSOs), and determinants of organizational innovation (such as organizations' characteristics, internal and external properties, and executive leadership) would influence innovativeness. Data from a survey of two types of human service organizations in South Korea (127 RSOs for children and 220 CSOs) revealed that the level of innovation in both types of organizations was not significantly different. The determinants of decentralization and formalization showed significant impacts on innovativeness in CSOs. Decentralization also had a significant positive effect on innovativeness in RSOs. However, executive leadership was a significant determinant of organizational innovativeness in CSOs only. Based on these results, administrative implications are suggested for the facilitation of organizational innovation in nonprofit human service organizations.     

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.     

Organizational Crisis Resistance: Examining Leadership Mental Models of Necessary Practices to Resist Crises and the Role of Organizational Context

This study explores which governance practices nonprofit leaders consider necessary to avoid organizational crises. Further, it explores whether these leadership mental models of crisis resistance depend on the organizational context. This helps determine whether practical learning points are organization specific or can be applied broadly. With a multilevel sample of 304 leaders from 44 Belgian nongovernmental development organizations, an exploratory path analysis reveals that nonprofit leaders consider continuous improvement, as a governance practice, particularly relevant for effective organizational crisis resistance. A multilevel analysis also shows that variations in leadership mental models cannot be explained by the organizational variables used in this study (organizational size, leadership group size, operational activities, and languages in the leadership group). This article concludes with a discussion of consequences for further research.     

Casa de Esperanza [Part B]

When nonprofit organizations make significant changes in mission, there are many issues of organizational structure and culture that must be re‐examined and re‐aligned. As the second segment in the case of Casa de Esperanza illustrates, there are many human issues that must be navigated by leaders making such changes. Case B illustrates the challenges that must be confronted as leaders embrace the agency's identity as a community‐based Latina organization, rather than a government‐funded domestic violence organization. The case describes the management planning and implementation processes, including changes in leadership, programming, and operations. Staff responses to these changes are also stressed, revealing the very human elements of organizational change. © 2004 Jodi Sandfort     

Does managers' motivation matter? Exploring the associations between motivation,transformational leadership,and innovation in a religious organization

Religious organizations are social systems operating in a complex and changing environment. By looking to an authority beyond themselves, religious organizations have comparatively little control over defining their own goals. In this juggling between sticking to the ultimate goal of an organization and adapting to complex changing environments, that is, in the juggling between tradition and renewal, transformational leadership seems to play an important role in religious organizations. The extensive body of literature on transformational leadership has focused more on the outcomes of transformational leadership than on its antecedents. We extend the existing literature by linking managers' motivation to their transformational leadership behaviors in a religious organization. More specifically, we examined the associations of intrinsic and prosocial motivation with transformational leadership, and we investigated the relationship between transformational leadership and innovation among 252 managers in the largest nonprofit organization in Norway, the Church of Norway. Analyses in structural equation modeling revealed a positive relationship between intrinsic motivation and transformational leadership, whereas the relationship between prosocial motivation and transformational leadership was not significant. Transformational leadership was positively associated with innovation. Based on the results of the study, we discuss practical implications regarding how to support intrinsic motivation, transformational leadership, and innovation in religious organizations.     

Sensegiving,Leadership, and Nonprofit Crises: How Nonprofit Leaders Make and Give Sense to Organizational Crisis

This study examined how 43 nonprofit leaders across 15 U.S. states make sense of organizational crises in nonprofit contexts, as well as what they think effective leadership is during crises. Findings revealed perceived nonprofit organizational crises emerging from disasters, disruption of mission delivery, internal stakeholder challenges, and unanticipated occurrences, while six major characteristics of effective crisis leadership emerged including being a team player, being strategic, being transparent with stakeholders, being quick to respond, being self-composed, and being prepared. Comparisons to previous empirical investigations of nonprofit leadership and crisis response yielded additional insights into effective crisis leader sensemaking in nonprofit contexts—most notably that nonprofit crisis leaders leverage sensegiving frameworks of instrumental knowledge, normalcy, and dynamic learning. Further analysis demonstrated these diagnostic and prognostic sensegiving activities to be more clearly observed than motivational sensegiving activities across crisis leaders in nonprofit contexts.     

Common Agency in Nonprofit Advocacy Organizations

Most theories of nonprofit organizations and nonprofit leadership recognize the multitude of stakeholders—including board members, donors and volunteers, funders, the media, and policy makers—that organizational leaders must contend with in doing their work. For nonprofits engaged in advocacy, demands from stakeholders may be even more challenging to meet. Although stakeholder theory recognizes the effect of various groups on an organization, it does not explain how leaders manage the preferences of their often‐competing stakeholders while they make choices for the organization. This study develops a common agency framework, evaluating the roles of three groups crucial to nonprofit advocacy organizations: the organization's board of directors, elected officials, and donors/members. The common agency framework is then illustrated with interviews with leaders of nonprofit advocacy organizations in California. Findings suggest that the leaders of these groups have a significant amount of discretion in guiding their organizations’ activities and operations.     

The effectiveness of nonprofit lead‐organization networks for social service delivery

Public agencies increasingly contract with nonprofit organizations to lead community‐based networks for social service delivery. We explore the role that partnership characteristics play in the effectiveness of these networks. Using data on children and family services in Los Angeles County, we consider the impact of both the motivations for forming partnerships and the nature of the resulting partnerships on perceived outcomes for clients, interorganizational relationships, and organizational learning. We find that client outcomes and interorganizational relationships are enhanced when partnerships are formed to meet certain programmatic and organizational goals. Organizational learning, however, is affected only when partnerships are formed to enhance organizational legitimacy. Partners selected because they share common vision increase effectiveness, while those selected because there are few alternative partners decrease effectiveness. Finally, when partnerships use an interorganizational coordination mechanism, client outcomes are improved. The managerial implications of these impacts for the nonprofit sector are developed. The results lend considerable support to the role of partnership motivation and partner selection in the effectiveness of nonprofit lead‐organization networks, and specificity about the nature of that role.     

How transformational leadership positively impacts organizational citizenship behavior in successful Chinese social work service organizations

Social work service organizations (SWSOs) have developed quickly, and there were nearly 8,000 of such organizations throughout China in the end of 2017. However, this rapid growth has brought both great opportunities and challenges. Globally, leadership has received increasing attention in the social work profession in the 21st century. Among different types of leadership, transformational leadership has been identified as a key issue in bringing more innovation and motivating employees' organizational citizenship behavior to overcome such challenges. Therefore, this study aimed to focus on social workers from the 170 applicants of the “Top 100 Social Work Service Organizations of 2017” which could be seen as the more successful SWSOs in China to examine how transformational leadership impacts organizational citizenship behavior by considering two mechanisms, workplace social capital and professional autonomy, in different areas throughout China. A two‐step process analysis was employed. First, a structural equation model was theoretically built, and it examined the direct and indirect relationships among all four latent variables, considering two mediation effects. Second, multiple group (high social work developed area group versus low social work developed area group) analyses tested the moderation effect. This study confirmed the key role of transformational leadership in the success of SWSOs and found workplace social capital as a full mediator and professional autonomy as a partial mediator in the relationship between transformational leadership and organizational citizenship behavior. These findings may shed light on the further development of SWSOs from the perspective of enhancing social workers' organizational citizenship behavior.     

Female leaders and board performance in member‐serving nonprofit organizations

Despite an active stream of “good governance” research, there is not yet much nonprofit scholarship examining how the gender composition of a board or its leadership relates to board performance. This article helps to fill this gap, focusing on the governance practices of US‐based nonprofits serving a domestic or international membership. A structural equation model finds that the presence of female leaders relates to the performance of nonprofit boards both directly and indirectly through these leaders' presumed influence on board characteristics and operation. This research advances the field by empirically testing a longstanding theory that board performance is both multidimensional and contingent on the market and labor environment, organizational capacity and other characteristics—in this case, gender dynamics. We find there are some positive relationships between female board leadership and clearly defined measures of board performance. These findings also suggest that a strategy to balance a board's gender may serve many nonprofits, but gender representation works in tandem with other board characteristics.     

Is organizational behavior in U.S. Muslim nonprofit institutions religious?

Several researchers argue that religion influences organizational behavior in nonprofit institutions (Lotfy, 2004; Brinckerhoff, 1999). This article examines this claim by outlining major organizational values embraced by the leadership of twenty‐eight American Muslim nonprofit institutions. Two surveys were distributed to a random sample of 224 board members and 416 constituents in the southern and southeastern United States. Findings indicate that American Muslim nonprofit institutions remain religious even when they provide nonreligious services. Exhibiting religious organizational behavior is not random or accidental. Rather, it can be a reflection of the role of faith in nonprofits. Exploratory factor analysis reveals nine religiously important values that characterize managerial leadership in American Muslim nonprofit institutions. These values and their implications are discussed.     

Employee creativity in U.S. and Lithuanian nonprofit organizations

This article reports findings from a study designed to test a model of creativity in the United States and Lithuania. Five independent variables were derived from the creativity literature: perceived leadership behaviors, organizational norms for creativity, group climate, job characteristics, and motivational orientation. They were used to predict creativity in a sample of 201 employees of nonprofit organizations. The results differed for the two countries. Interestingly, while in the United States organizational norms for creativity, extrinsic motivation, and hierarchical level were related to employee creativity, in Lithuania intrinsic motivation and education constituted major predictors of creativity. Based on the study results, I suggest practical implications for nonprofit managers on how to capitalize on their employees' creativity.     

Nonprofit mission statement focus and financial performance

Mission statements have been adopted nearly universally in nonprofit organizations. Their ubiquity is based on a presumption that a well‐designed mission statement is linked to better organizational performance because it provides a framework for decision making, influence over staff and volunteer motivation, and a mechanism for signaling organizational legitimacy to stakeholders. Despite collective confidence in mission statement utility, the relationship between mission statements and performance has received minimal attention. In this exploratory study we measured several attributes of mission statements in women's rights nonprofit organizations, with particular attention to the degree to which the statement focuses on organizational purpose and the relationship between focus and several measures of organization financial performance. The findings indicated that mission statements with a more focused geographic scope were associated with lower overhead ratios. In contrast, mission statements that identified more target client groups were associated with larger one‐year increases in contribution. Despite the statistical significance, the relationships were weak, calling into question common assumptions about the importance of the mission statement to a nonprofit organization.     

Integrated or Disconnected? Examining Formal and Informal Networks in a Merged Nonprofit Organization

This article introduces nonprofit researchers and practitioners to a social network analytical technique for assessing internal staff relationships after a merger. We studied a case of a nonprofit merger, investigating its formal and informal intraorganizational networks to see which parts integrated and which remained separate operationally. We discovered a prior‐organizational‐affiliation‐based homophily within the merged organization: most interpersonal relationships existing within these networks remained among the employees who worked together prior to the merger. However, the informal and expressive networks of mentoring, friendship, and socioemotional support were even more disconnected than the formal and instrumental networks of work relationships and problem solving. We highlight the role of a mentoring network in bridging formal and informal networks in a merged organization.     

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.     

The trickle‐down effect of ethical leadership in nonprofit soccer clubs

Nonprofit soccer clubs are currently facing many ethical challenges, such as abuse, doping and match fixing. While research suggests that organizational (board) ethical leadership may be effective to tackle these ethical issues, empirical support in the context of sport remains limited. Drawing on the perceptions of a sample of nonprofit soccer players (n = 438) and coaches (n = 106), we indicate that the coaches play an important mediating role regarding the associations between board ethical leadership and ethical climate. The theoretical underpinnings of ethical leadership—formed by social learning theory and social exchange theory—and the social distance between the board and the players in nonprofit soccer clubs provide support in this regard. In sum, our results demonstrate that the influence of board ethical leadership in nonprofit soccer clubs partly trickles down to the players via coach ethical leadership. Finally, practical implications for nonprofit soccer club management are discussed.