Strategizing in NPOs: A Case Study on the Practice of Organizational Change Between Social Mission and Economic Rationale

This article presents the main results of a longitudinal case study of a strategic change process in a cooperative bank. Pursuing both a “social” mission and an explicitly economic rationale, this particular nonprofit organization provides an exemplary research setting for inquiring into the delicate and contradictory interplay of mission focus and commercial imperatives. Departing from the practice perspective as a micro-view on everyday strategizing—an approach that seems to have not found its way into NPO-research yet—allows us to take an in-depth look at how people go about the process of making strategy despite the tensions between mission and profit. Our data yields three patterns of strategizing practices that aim at fostering economic growth without damaging the social mission, namely supporting diverse positions, protecting stabilized relationships, and relating to organizational experiences. Building upon our empirical results, we tentatively conceptualize “balancing practices” as potentially important acts of strategizing in NPOs.