Network centrality,organizational innovation,and performance: A meta‐analysis

Based on samples from 40 studies encompassing 15,860 organizations, we use meta‐analysis methods to examine the relationships between network centrality, organizational innovation, and performance, and to predict the influence of organization size, institutional environment, and industry on these relationships. Results show that network centrality positively influences both organizational innovation and performance. In addition, findings indicate that the impact of network centrality on organizational innovation is stronger for small organizations while that on organizational performance is stronger for large organizations. The influence of network centrality on overall organizational innovation/performance is stronger for organizations in developed institutional environments as well as in knowledge‐intensive industries. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

The Founding of a Nonprofit Organization as a Teaching/Learning Experience: A Case Study in Service Learning

ABSTRACT

The present case study describes how the founding, by faculty, of a nonprofit organization has aided marketing instructors (and instructors other disciplines) in teaching students to understand and apply marketing (and other business) theories in a “real-world” environment. To that end, the case study is organized as follows. First, it offers a short discussion on the pros and cons of working with for-profit versus nonprofit organizations to add value to the learning experience for students. Second, it describes the benefits and drawbacks instructors and/or students have experienced from starting their own nonprofit organization as a teaching or learning tool to help translate marketing theory into marketing application.     

Female Social Networks: Identifying Better Communication Platforms to Advertise Nonprofit Services in Rural Pakistan

Women’s access to nonprofit organizations providing financial and community services is an issue in remote areas of Pakistan. Weak communication of nonprofit services to potential female clientele is a significant barrier to women’s access to nonprofit services. This article examines how personal networks among women in remote areas may improve the information delivery about the women-focused nonprofit projects in Pakistan. The women’s networks also play a critical role in members’ motivating each other to join the services offered by the nonprofit organizations. The study used concepts of network and social capital and current network analysis techniques. Data from three remote locations in Pakistan were analyzed using a 2-mode network analysis, content analysis of nonprofit websites, and face-to-face interviews. UCINET software program identified network routines (centrality measures).

The study found that friends, neighbors, and local schools are significant information sources for women. Most information about income-producing projects came from their spouses. Information about social services came from friends, neighbors, or social gatherings. Husbands have high betweenness centrality indicating high power over women’s access to services. Closeness centrality measures indicate that women are not well connected for exchanging information on nonprofit services.     

Trust in the Board: A Strategic Imperative in Times of Uncertainty

ABSTRACT

In turbulent environments, investors seek to minimize risk. Many public/nonprofit organizations evoke a sense of trust in their members by maintaining boards of directors. This study examined faculty member attitudes about the public/nonprofit institutions and boards who manage their retirement funds (n = 240). A structural model revealed that investors developed trust in the board when they view the organization positively through reliable communication, a sense of shared values and retirement funds that perform soundly. As a mediator of attitude toward the organization trust in the board also diminished investor perceptions of risk, and partially explained whether members cooperated and continued with the organization. The findings support trust as a key intervening factor in member-organization relationships and suggest building trust in board governance as an effective way to reduce uncertainty.     

Market Orientation and Organizational Performance in the Nonprofit Context: Exploring Both Concepts and the Relationship Between Them

ABSTRACT

The purpose of this paper is to explore the relationship between the concepts market orientation and organizational performance for nonprofit organizations. To understand the nature of this link in the nonprofit context, the authors will discuss and elaborate on the applicability of both concepts to nonprofits. They will develop multidimensional notions of “societal orientation” and “nonprofit organizational performance,” which fit the specific operating environment of nonprofit organizations engaged in the provision of health and social services. The authors also propose a conceptual framework that relates both notions and present the main underlying propositions. They conclude by suggesting items to empirically measure both constructs and venues for future research.     

Hoping to Enhance a Local Funding Relationship: Exploring Private Sector Business Preferences When Contributing to Nonprofit Organizations

ABSTRACT

Nonprofit organizations want relationships with private sector businesses because nonprofits rely on fundraising to generate income, a portion of which is provided through the charitable giving of the private sector. Who the private sector contributes to, why they give, and what variables positively influence more giving, are all questions nonprofit organizations continuously want answers to. The answers though are often arbitrary, reflecting subjective criteria based on individual business preferences, the economic status of the marketplace, the community context, and the credibility of the nonprofit program. Because the relationship is dynamic and the answers may continue to change, nonprofits must continue to ask.

This article discusses an exploratory effort to identify the funding attitudes and behaviors of private sector businesses who contribute to their local nonprofit organizations.

The results showed the majority of private sector businesses who responded said they support their local nonprofits primarily with cash contributions, and identified altruism as a key motivation for giving. Results also revealed that their funding choices are somewhat arbitrary with little formalized process for decision-making. Dollars are contributed primarily by direction of individual managers or owners who prefer informal relationships with their local nonprofit organizations, but expect funding requests to clearly explain how the dollars will be used. The findings, although limited, provide results that further examine this complex relationship, and perhaps provide insight into how the relationship could be enhanced for the ultimate benefit of both organizations' needs.     

Aftermarketing with Best Customers-

In order to cultivate and serve the needs of their customers, for-profit businesses and organizations are using ''aftermarketing'' as a technique to reduce customer attrition. This article will examine this way as a technique for nonprofit organizations to serve the needs and wants of its donors. It will analyze a case study of a nonprofit organization which uses this technique as a tool for finding out what donors think. And it will discuss the importance of ''aftermarketing'' to nonprofit organizations.     

Identity Brokerage and Nonprofit Community Building

Scholars have increasingly approached organizations as complex systems with indeterminate, shifting boundaries. Boundaries in many nonprofit organizations may be especially fluid, given the heterogeneity of stakeholders and highly multiplexed relational and value characteristics involved in constructing identity. The present study frames nonprofit organizations as complex organizations seeking to build communities of legitimacy. Within these communities they construct their identity through a combination of boundary setting, or perceptions of the organization and in what ways it is distinct from other organizations and communities, and relationship building, through both interpersonal contacts and socially mediated interaction. These dimensions combine to allow organizations to identify and bridge structural holes in the larger network in which they are embedded, through processes of identity brokerage. These mechanisms have significant implications for driving growth and engagement in nonprofit organizations. In support of this theoretical model, the article describes a mixed-methods research study involving a nascent arts organization in a large U.S. city.     

Using Video to Build an Organization's Identity and Brand: A Content Analysis of Nonprofit Organizations' YouTube Videos

Organizational scholarship has increasingly focused its attention to how nonprofit, for-profit, and government agencies develop their unique organizational identity through their strategic communication efforts. As social media continues to become more prominent in communication campaigns due to the high levels of public usage and public involvement with organizations on social media sites, it is important to examine these social media messages as they relate to organizational identity. YouTube videos increasingly are being used by organizations to educate and inform just as much as they are to entertain. Through a content analysis of the most viewed videos on the top 100 official nonprofit YouTube channels, this study found that nonprofit organizations primarily use their YouTube videos to inform and educate viewers about their missions, programs, and services. While the videos also occasionally discuss the organizations' advocacy, volunteering, and fundraising efforts, nonprofit organizations were not living up to their potential in terms of engagement through direct appeals for involvement. Additionally, the organizations were more likely to use outsiders' words and stories to build the videos' narratives rather than using internal stakeholders. The benchmark numbers provided by this study reiterate key rules that are stressed in practitioner-oriented work on video production for branding and identity-building efforts.     

Looking For a Network Organization: The Case of GESTO

We present ten propositions to explore an ideal type of network organizations with emphasis on internal structure relating properties to organizational structure and processes. Network organizations are flat, flexible structures, with high reachability and high information access enabling learning. Based on an exploratory case study we use network analysis and find that this organization has the properties of a network organization. The employees participate in several networks, work is done in project groups that are initiated and organized by the employees. Oligarchy or hierarchy are not distinct features of the organization; the flexibility of the structures is demonstrated by showing that the members change network position in project networks over time. Tenure, the most important integrating mechanism, influences centrality measures, skill levels, and the ability to propose and organize projects.     

The Dynamics of Fair Trade as a Mixed-form Market

This article analyses the Fair Trade sector as a “mixed-form market,” i.e., a market in which different types of players (in this case, nonprofit, co-operative and for-profit organizations) coexist and compete. The purposes of this article are (1) to understand the factors that have led Fair Trade to become a mixed-form market and (2) to propose some trails to understand the market dynamics that result from the interactions between the different types of players. We start by defining briefly Fair Trade, its different dimensions (including the “fair” quality of the products) and its organizational landscape, focusing on the distinction between the pioneer “Alternative Trading Organizations” and the second-mover companies. Then, we recall the theoretical emergence factors for each type of organization (nonprofit, co-operative and for-profit) and apply these emergence factors to the context of Fair Trade. This analysis allows us to capture the specificities of each type of operator with regard to Fair Trade and, thus, to have a better understanding of the dynamics in the sector. Such dynamics includes competition, but also conflict and partnership. Our analysis includes elements on ethical imitation, consumers’ behaviors, effects on welfare and the role of the government.     

Policy Issues Raised by For-Profit Spinoffs from Professional Associations: An Evaluation of a Recent AICPA Initiative

This paper provides an evaluation of the spinoff of a for-profit company from the American Institute of Certified Public Accountants (AICPA), a nonprofit professional association. The evaluation is based on a review of the literature on public policy issues surrounding organizational conversions from nonprofit to for-profit legal status. Many criticisms of this for-profit spinoff were voiced by professional leaders and accounting regulators, and we demonstrate that these criticisms are grounded in widely recognized policy principles relating to nonprofit conversions. The public policy issues raised by this study have implications for the governance of professional associations in all disciplines.     

Economic geography and emerging market clusters: A co-evolutionary study of local and non-local networks in Bangalore

The presence of network ties within location plays a significant role in organization and evolution of clusters. This has proven to be particularly true for clusters specializing in knowledge intensive industries, where the organization of resources – people and technology – has been a primary driver for firm and regional performance. With the help of a longitudinal case study of the Bangalore IT cluster in India, we investigate the effect of local and non-local network ties on its evolution. We argue that networks – both local and non-local – play an important role in the development of cluster. We propose a non-linear relationship between cluster evolution phases and the type of network ties most prominent. Our study also outlines the role that embedding, expansion, and extension of ties plays in transitioning cluster from one phase to the other. The consideration of non-local ties is rather nascent in the cluster literature and promises to enhance the understanding of how clusters develop at both levels – policy as well as firm.     

Market Orientation of Riding Schools: A Comparison of For Profit and Nonprofit Organizations Using Structural Equation Modeling

For profit and nonprofit service providers compete in different areas of economy. Market orientation is a widely acknowledged concept that influences the performance of both for-profit companies and nonprofit organizations. Nevertheless, the different underlying attitudes and motivations of voluntary or professional managers may influence the market orientation of an organization. An empirical study was conducted for investigating the influence of different attitudes toward market orientation. Groups of non- and for-profit managers are compared using the example of German riding schools. Overall, 244 volunteer and professional managers answered the survey. A structural path model was evaluated using the software SmartPLS 3. Results show that attitudes and motivations exert influence differently in the non- and the for-profit contexts. The economic situation was found to have an influence solely on the satisfaction reported by professional managers but not on the satisfaction reported by volunteers. Implications for future research on nonprofit market orientation can be drawn from the findings.     

Use of the Customer Value/Mission (CV/M) Matrix in Strategic Nonprofit Marketing Analysis

ABSTRACT

Application of traditional portfolio methods to nonprofit marketing situations is difficult, to say the least. For the most part, they require detailed market share, market strength, market growth, market attractiveness, and cost and profit accounting information that many nonprofits do not have and may not be able to acquire given the nature of products typically offered by nonprofits, e.g., services and/or social behavior programs. We suggest use of a recently proposed product portfolio model, the customer value/mission (CV/M) matrix as a method that can help nonprofits in then-product planning endeavors. The CV/M matrix better serves the needs of marketing strategists not only in for-profit organizations but in nonprofit ones as well. This is because it reflects on customer value and differential advantage in the eyes of an organization's consumers. This paper directly compares the use of an older portfolio matrix that has been suggested for use in nonprofit organizations with use of the new matrix and discusses some advantages and disadvantages of each.     

Corporate Culture in the Nonprofit Sector: A Comparison of Fringe Benefits with the For-profit Sector

One explanation that may be given for why nonprofit organizations pay lower wages than do other organizations is that nonprofits are more pleasant places to work. Indeed, some authors have proposed that nonprofit organizations should make an effort to promote a working environment that reflects the beliefs of the organization. This paper uses several proxies for whether an organization is a pleasant place in which to work, and tests for whether nonprofits are more likely to offer such pleasant working conditions. Analysis shows that nonprofits are not more likely to offer these conditions in many instances.     

Online Media,Market Orientation,and Financial Performance in Nonprofits

The combination of social, political, and economic changes causing simultaneously decreasing funding and increasing demand for services is driving nonprofit managers to engage in proactive marketing in a for-profit model, including the use of online media. This research extends the MARKOR model of market orientation to examine the relationship between market orientation practices, as reflected in the utilization of online media, and their effects on the financial viability of nonprofit organizations (NPOs). The Wayback Machine website (http://waybackmachine.org) provided a unique ability to track site content over time, for comparison with each organization's financial indicators at corresponding points in time. The results of this study confirm the positive relationship between higher market orientation via online media presence and improved financial viability for the sampled group of NPOs. This study provides a simple, actionable, and free measure that NPOs can use to assess their current and planned online media.     

Virtual organizations: Computer conferencing and organizational design

Computer conferencing systems link groups of users who “meet”; in the virtual space of a computer and interact around a common purpose or topic. These electronically constituted and mediated groups can mirror, cross‐cut, or hive off from existing organizational structures. This article reports a study of organizational structuring processes that accompany the introduction of a computer conferencing system in six industrial organizations. The relationships among technological capabilities and constraints, existing organization structures, managerial intent, and the unanticipated consequences of implementation for structural change are discussed. Employing the same software system in each case, organizational outcomes are radically different.

Earlier analysts have focused on a contingency model of the organization‐to‐technology relationship. Computer conferencing systems, however, confound the distinction between technical and organizational systems; they exist in an overlapping border domain between their two parent systems. This article explores the character of this overlapping domain and proposes the terms “virtual group”; and “virtual organization”; to evoke the special status of groups created through computer conferencing. Virtual organizations are semiotic entities in Weick's [1] sense of equivoque and their essentially ambiguous, interpretable character is important in shaping organizational outcomes. Virtual groups become part of the ongoing process of structuration [2], while also providing a new tool for organizational design.     

Should Independent Board Members with Social Ties to Management Disqualify Themselves from Serving on the Board?

This paper examines whether independent directors who have social ties to management (inside directors) can effectively perform their fiduciary duty to monitor management on behalf of shareholders. Ex ante, it is not clear whether social ties will enhance or obstruct the quality of board performance. Theory suggests that directors who are socially tied to management are ineffective and would make decisions favoring management. However, social ties can increase trust and information sharing between management and independent directors, improving directors’ ability and effectiveness in governing the company (Westphal, J.D.: 1999, The Academy of Management Journal 42(1), 7–24). To examine these contradicting predictions I use social network analysis and construct proxies for social ties between management and independent board members. Using these proxies, I first demonstrate that social ties are associated with higher managerial compensation. Further analyses reveal that these results are driven by social ties that include members of the compensation committee. Conversely, I demonstrate that financial reporting quality is improved when social ties exist. Specifically, I find that the likelihood of material weaknesses in internal controls and the likelihood of financial restatements are lower in companies with social ties. I further observe that this improved quality of financial reporting holds only when social ties include members of the audit committee. I conclude that ethically, socially tied independent directors should disqualify themselves from serving on compensation committees where social independence is essential. However, in tasks where collaboration with management is essential, directors with social links to each other can be of added value to shareholders.     

The nonprofit case for corporate volunteering: a multi-level perspective

ABSTRACT

This article argues that the nonprofit case for corporate volunteering is complex, requiring a multi-level perspective on the outcomes for nonprofit organizations (NPOs). To develop this perspective, we adopted an inductive research approach, conducting 39 exploratory semi-structured interviews with NPO staff. We argue that NPO scholars and practitioners should disentangle individual and organizational-level outcomes resulting from interactions between corporate volunteers and NPO staff, as such micro-dynamics ultimately affect NPO services. Moreover, these outcomes are subject to conditions at the organizational level (e.g. involvement of intermediaries), as well as at the individual level (e.g. type of assignment). Our study highlights the complexity that should be considered when addressing the fundamental question of whether corporate volunteering contributes to the ability of NPOs to provide their services, and under what conditions. We therefore propose that corporate volunteer management within NPOs is inherently, albeit contingently, intertwined with the services that these organizations provide.