An Investigation of Innovation in Nonprofit Organizations: The Role of Organizational Mission

McDonald, Robert E.

doi:10.1177/0899764006295996

Cited by 353Organizational Strategy and CultureNonprofit Sector and VolunteeringInnovation and Knowledge Management

An Investigation of Innovation in Nonprofit Organizations: The Role of Organizational Mission

McDonald, Robert E.·2007·Nonprofit and Voluntary Sector Quarterly

DOI 10.1177/0899764006295996

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Abstract

Nonprofit organizations are experiencing increasing pressures to be more business-like and to focus on financial outcomes for sustainability and growth. There have been questions whether this attention on performance might come at the cost of serving an organization's mission. The research presented here indicates that a nonprofit organization's mission can facilitate innovation, which has been shown to be a key mediating step in achieving superior organizational performance. Two studies were conducted among nonprofit hospitals in the United States to investigate the role of the nonprofit organization's mission in the innovation process. The findings indicate that a clear, motivating organizational mission helps an organization to focus its attention on those innovations that will most likely support the accomplishment of that mission. Such a mission also creates a climate in which innovations are given a fair chance to succeed. As a result, firms with clear, motivating missions tend to be more innovative.

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Increased marketization of the non-profit sector focuses on implementation of business principles, providing rationale for the social dimension.
“Finally, one last approach, a result of increased marketization of the non-profit sector, focuses on the implementation of business principles in non-profits [76]. To survive, non-profits are becoming more entrepreneurial [77], become more adept with innovative practices and improve attitude toward change [53], or begin redefining their mission [78,79]. This provided the rationale for the second”
From Community-Based Healthcare Programs Sustainability Impact on the Sustainability of Host Organizations: A Structural Equation Modeling Analysis (2019) · cites this paper as [53]
Organizational goal clarity or members' perception of an organizational goal has a positive effect on innovative behavior.
“Many studies have stated that the clarity of an organizational goal or members' perception of an organizational goal has a positive effect on innovative behavior [34,44,[88][89][90][91][92][93][94][95].”
From A Study on the Effect of Change Management on Organizational Innovation: Focusing on the Mediating Effect of Members’ Innovative Behavior (2021) · cites this paper as [44]
Organizational goal has a positive effect on organizational innovation.
“Previous studies found that the organizational goal has a positive effect on organizational innovation.”
From A Study on the Effect of Change Management on Organizational Innovation: Focusing on the Mediating Effect of Members’ Innovative Behavior (2021) · cites this paper as McDonald's (2007) [44]
Prior studies indicate that change management factors have a positive effect on innovative behavior.
“First, studies analyzing the relationship between change management factors and innovative behavior have indicated that change management factors have a positive effect on innovative behavior [36,44,56,95,98-101,110,130-132,150].”
From A Study on the Effect of Change Management on Organizational Innovation: Focusing on the Mediating Effect of Members’ Innovative Behavior (2021) · cites this paper as [44]

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Authors: McDonald, R. E.
Affiliations: Texas Tech University (US)
Corresponding author: McDonald, Robert E.
ORCID: McDonald, Robert E.
Venue: Nonprofit and Voluntary Sector Quarterly
Publisher: SAGE Publications
Published: 2007-06
Volume: 36
Issue: 2
Pages: 256-281
ISSN: 0094-0607 (ISSN-L)
0899-7640
1552-7395
DOI: 10.1177/0899764006295996
OpenAlex: W2044270804
Cited by: 353
References: 49
Citations by year: 2026: 12 · 2025: 13 · 2024: 13 · 2023: 13 · 2022: 21 · 2021: 23 · 2020: 31 · 2019: 34 · 2018: 21 · 2017: 25 · 2016: 16 · 2015: 24 · 2014: 23 · 2013: 24 · 2012: 23
FWCI: 11.05
Type: journal article
Language: en
Open access: closed
Licence: journals.sagepub.com/page/policies/text-and-data-mining-license (tdm)
Locations: Nonprofit and Voluntary Sector Quarterly (publishedVersion)
Topics: Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Organizational Strategy and Culture
Social Sciences › Sociology and Political Science › Nonprofit Sector and Volunteering
Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
Keywords: nonprofit organizations, organizational mission, innovation, nonprofit hospitals, organizational performance, organizational climate

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An Investigation of Innovation in Nonprofit Organizations: The Role of Organizational Mission

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