Management practices in the nonprofit sector have been changing over the last decade. Many nonprofit organizations are now mimicking the management techniques of for-profit organizations. Referring to prevailing economic, psychological, and management theories, this paper deals with pay-for-performance plans and specifies reasons for their introduction into nonprofit organizations. The determinants of pay-for-performance effectiveness are analyzed with special emphasis on the motivational determinants. The results of the analysis are incorporated into a model of pay-for-performance effectiveness. Referring to theoretical reasoning as well as empirical studies, this paper analyzes how the motivational determinants of pay-for-performance effectiveness are coined in different types of nonprofit organizations. The paper ends with a discussion in which the author presents an alternative explanation for the introduction of pay-for-performance plans into nonprofit organizations and some suggestions for future research.

Nonprofit interactions with businesses have become increasingly diverse, but which nonprofits establish relationships, and to what extent do relationships depend on the form or type of tie? Focusing on nonprofit collaboration with businesses and donations from businesses, we test arguments based on sociological institutionalism and resource dependence theory. We find that nonprofits relying on earned income, nonprofits led by individuals with management degrees, and rationalized nonprofits all are more likely to report collaborations with businesses, aligning with expectations from institutional theory. For donative ties between businesses and nonprofits, we find that rationalized nonprofits are more likely to have charitable gifts from businesses. However, nonprofits with earned income are less likely to have business donations, and funding diversity has a salient positive effect. These results reveal important but paradoxical institutional and resource dependence effects. We conclude with a discussion of our divergent findings and set an agenda for additional research on the topic.

Social enterprises face complex institutional logics due to their focus on both economic and social goals, resulting in institutional tensions. Interorganizational collaboration is a strategy to cope with environmental turbulence and complexity. Guided by institutional theory and the literature on interorganizational collaboration, this study examines the role of partnership building in managing institutional tensions and hybrid organizational forms undertaken by social enterprise organizations. With interview data collected from 15 social enterprises in a southeastern state in the USA, this study demonstrates that the majority of the sampled organizations reported experiencing organizing and learning tensions while a couple reported performing and belonging tensions. Organizations leveraged specific cross-sector partnerships to obtain legitimacy and sustain their businesses. A typology of partnerships (community engagement, resource acquisition, and dual-value) is proposed based on organizational forms and activities undertaken by various SEs to manage these tensions.

The article inquires into the role of the institutional context in explaining the governance of community co-operatives. These organizations do not solely focus on a member’s advantage but act on behalf of some collective identity. To enhance our understanding of the nature of co-operative governance on the neighborhood level, we draw on theoretical concepts that are context-sensitive, helping us to catch the institutional conditions in a specific place which are enabling individuals and groups to act and organize collectively. Thus, we enrich the abstract concept of governance put forward by New Institutional Economics. Based on a systematic analysis of case studies, the paper shows that the governance of community co-operatives is based on place-bound values. However, the encounter of divergent imaginations of the neighborhood results in different co-operative practices: e.g., either a government-directed practice to “discipline” the community or a community-initiated practice of self-organization.

Maintenance of legitimacy is central to the survival of any organization and is of particular importance to non-governmental organizations (NGO) reliant on external sources of income. Interaction with the external environment plays an important role in determining organizational legitimacy, shaping actions and determining opportunities. The ability of an organization to effectively respond to and influence the external environment can potentially strengthen its legitimacy. This paper considers the issue of organizational legitimacy by using resource dependence and institutional theories to analyze the development of the Regional Environmental Center for Central and Eastern Europe (REC). The findings indicate that it is possible for an organization to maintain legitimacy through adaptation, responding to the rise and fall of external opportunities and challenges. As predicted by institutional theory, it also argues that external environmental factors place increasing pressure for conformity over time, limiting scope to manoeuvre over the longer-term.

The financial sustainability of nonprofit organizations is an abiding concern. One generally accepted solution for threats to nonprofit financial sustainability is the adoption of business practices such as commercial revenue. Institutional theory, joined by empirical evidence, suggests that nonprofit practitioners may (or may not) perceive a conflict between their social mission and business practices, which is a perquisite to developing a strategic response. Through a multi-site ethnography, I examine how nonprofit practitioners respond to pressures to enact business practices. The cognitive schema practitioners in this study use to justify that managerialization rationalizes business practices as means to achieving the mission. This schema explains why potential conflicts between business practices and the social mission went largely unnoticed and led, in large part, to passive acquiescence. The lack of perceived conflict captured in this study may be concerning because without conflict business practices may lead to unintended negative consequences such as mission drift.

Non-governmental organizations (NGOs) are a major institutional force in promoting sustainable development, especially in institutional environments where governments have often not been able to assume the role of development agent. Despite this importance, the approach of Latin American NGOs to sustainability has received only little attention so far and respective research is scarce. To address this research gap, we conducted an online survey of 306 Latin American NGOs, investigating their understanding of sustainability and how they seek to transmit it. Due to the lack of previous empirical studies, our study is exploratory in nature and examines eight research categories: (1) NGOs definition of sustainability; (2) the role they see for themselves in its promotion, (3) dimensions of sustainability judged as important, (4) stakeholders and (5) partners considered, (6) motives for pursuing sustainability, (7) forms of implementation, and (8) measures regarded as necessary for spreading it further. Our findings are discussed against the institutional environment of Latin America, as we assume that the understanding and transmission of sustainability is contextual in nature. Our study shows that the sustainability concept of the sample NGOs is broad and that they take a wide variety of efforts for implementing it. Exploratory and confirmatory factor analyses confirmed the reliability and validity of the eight-component-model we applied for our study. Thus, it serves as a valuable starting point for future research into the “terra incognita” of Latin American NGOs’ approach to sustainability.

Arrangements to certify that an organization’s management systems meet standards of good practice are an increasingly prominent feature in the environment of public and private nonprofits. This paper reports an exploratory study of the issues that this phenomenon presents to managers and policy makers, drawing on the limited literature, and five case studies covering two different schemes. The main conclusions are that nonprofits can and do use these awards in very different ways, and hence the outcomes are diverse. These findings run counter both to the rational system assumptions on which such arrangements are based, and to the general thrust of institutional theory with its emphasis on isomorphism. Some implications for decision makers and future research are outlined.

This paper presents a case study and analysis of Co-operation Ireland, a nonprofit cross-border peace and reconciliation organization. The case description traces the interplay between the organization’s development and its operating environment. Three broad, overlapping periods of relationships with different constituencies are identified. The requirements of managing these relationships and their impact on organizational development are highlighted. The pattern of financing of the organization is examined to identify critical, legitimizing relationships. Resource dependence and institutional theory are utilized to analyze the bases for legitimation of the organization over time. It is proposed that nonprofit organizations without independent resources are particularly sensitive to environmental constraints.

In this study, we aim to investigate the much shrouded and problematic role of civil society organizations (CSOs) in conflict settings. We argue that to go beyond the “NGOization” of CSOs, there is a need to have a macro perspective of the interaction mechanisms between the shifting dynamics that CSOs play in development efforts. This lack of perspective impedes the ability of CSOs to navigate challenges in conflict settings because examining CSO dynamics independently will not be sufficient to develop effective solutions. Therefore, we investigated the interplay between dynamics in the case of Palestinian CSOs through our interactive framework, where we identified three main barriers faced by CSOs and eight interaction mechanisms between each of the dynamics and the barriers. Our framework appeals to policymakers and practitioners alike by offering practical implications emphasizing the role of locally led initiatives that mobilize communities to innovate and govern, with guidance from CSOs.

We address two views from organization theory to consider the expansion and effects of nonprofits in education: first, a functional view emphasizing the direct effect of work of civil society organizations (CSOs) and, second, a phenomenological neoinstitutional view focusing on the cultural meaning of education CSOs as indicators of a rationalized, liberal world society. We use panel regression models with country fixed effects to analyze the cross-national expansion of domestic education CSO sectors in 130 countries from 1970 to 2014. We then examine the association between the size of the domestic education CSO sector and memberships in international non-governmental organizations (INGOs) with education outcomes, including spending, education aid, secondary and tertiary enrollments, and the share of women in secondary and tertiary education. Results show that INGO memberships, an expanded state, and an expanded education system are highly associated with the expansion of a domestic education CSO sector. Both domestic CSOs and INGO memberships tend to have a significant, positive relationship with education outcomes net of other factors. We also find preliminary evidence indicating that the causal forces at play are more complex than a straightforward direct effect of education CSOs doing good work. Specifically, CSOs, at least in part, are indicators of a Western, liberal model of a proper modern society; the underpinning culture, represented by CSOs, accounts for some educational expansion above and beyond the benefit (or harm) caused by any given entity.

The COVID-19 pandemic sent shockwaves throughout the world. Even though the Czech Republic has less stable state structures and a less consolidated party system than its West European counterparts, during the first wave, the country actually performed better than most West European countries in terms of infection rates, death rates, and economic growth. During the second wave, however, the country’s position radically dropped. Despite its increasing health problems, its social policies still performed rather well and managed to keep unemployment at comparatively low levels. How can we explain these differences between erratic performance on the health side and comparatively solid performance on the social policy side? Our study explains why traditional social policies basically remained path dependent, while epidemiological policies dealing directly with fighting the spread of COVID-19 did not. Our explanation combines sociological and rational choice institutionalism and links them with the concepts of repeated games and bounded rationality.

With the goal of achieving carbon neutrality, the green transformation of manufacturing firms has become a major trend, and exploring its influencing factors is of great practical significance. This study examines whether the carbon emissions trading policy can promote firms’ green transformation by analyzing its characteristics through both institutional pressures and incentives. Using a fixed-effects panel data model and data from Chinese A-share listed manufacturing firms during 2010 and 2020, the basic empirical results confirm their positive relationship. We further examine the moderating roles of both external institutional environments and internal resources. The results suggest that, as external moderators, regions with high public environmental attention and government subsidies can amplify the positive impact. Internally, for firms with executives who have environmental experience, the carbon emissions trading policy has a greater impact on their green transformation, while higher resource slack plays the opposite role. Additional analyses suggest that, in the short term, this policy may hinder the green transformation of firms in adjacent regions and potentially lead to economic losses for the pilot firms.

The Qualifying Law Degree (QLD) resulted in law degrees tending to be similar in design, with compulsory foundation modules at their core. The Solicitors Qualifying Examination (SQE) represents a significant change to solicitor qualification and potentially frees universities from the constraints of the foundations. There was also speculation that some universities would feel pressure to align undergraduate curricula to the SQE. This paper makes a contribution to knowledge by undertaking the first content analysis of LLB webpages since the SQE’s implementation. The data reveals that: (1) law schools still overwhelmingly require mandatory study of all the foundations; (2) there has been an incremental shift towards vocationalism; (3) a small minority of webpages may be overstating the extent that their LLB prepares students for the SQE; and (4) a significant proportion of webpages contain factually inaccurate or confusing information about programmes or routes to qualification. It confirms an inherent irony: the deregulation of undergraduate solicitor education in England and Wales had led to more vocational alignment than experienced under the previous system but has not resulted in a significant shift away from the foundations. We present a novel explanation as to why this is the case, based on institutional theory and organisational strategic theory.

This study examines how university curriculum reforms that increase course selection flexibility influence entrepreneurial outcomes. Departing from traditional emphasis on educational attainment, we explore how institutional changes in education shape entrepreneurial tendencies among alumni. Leveraging a reform that removed constraints on course selection at a major university, we find that increased educational choice significantly fosters entrepreneurship. Our analysis reveals partial support for the moderating effects of individual, family, and spatial factors: the positive impact of these reforms is contingent on the type of electives and courses taken, with stronger effects observed among alumni with entrepreneurial parents, those born in urban areas, and those from higher socioeconomic backgrounds. These groups leverage specific course patterns to align their educational choices with entrepreneurial aspirations, enhancing their likelihood of pursuing entrepreneurial ventures. However, these findings also underscore the potential for educational reforms to exacerbate inequalities, disproportionately benefiting those with preexisting advantages. By integrating insights on institutional changes, course-taking patterns, and individual moderators, this study advances understanding of the interplay between education and entrepreneurship, offering implications for designing more equitable educational policies.

The institutional logics perspective provides a powerful theoretical lens that emphasizes how meanings and practices are intertwined in relatively enduring configurations that can profoundly shape organizational behavior across space and time. In this article, we propose the need for a broader research agenda on the dynamics of institutional logics in the Chinese context, particularly in three aspects. We begin by elaborating on the distinct configuration of logics in China, where state logic is more dominant and often directs other logics, thus shaping organizational behavior differently than its Western counterpart. We then argue for the need to examine (1) the change of logics per se, leveraging China’ market transition, which provides a unique opportunity to observe how existing configurations of logics undergo transformational change and regain coherence; (2) the governance of logics, focusing on the influence of social evaluators and command posts; and (3) the diffusion of the China Model, a distinct configuration of logics and orders, to other countries through the Chinese state’s political and economic campaigns.

Grounded in institutional theory, this study delves into the heterogeneous responses of politically connected top executives (PCTEs) to uniform institutional requirements for corporate environmental responsibility (CER). Specifically, we scrutinized the moderating role of organizational visibility in shaping the association between PCTEs and both environmentally responsible and irresponsible practices. Analyzing data from listed Chinese firms in heavily polluting industries spanning from 2010 to 2018, the findings indicate that PCTEs contribute to an increase in firms’ environmentally responsible activities and a decrease in their environmentally irresponsible activities. Notably, the impact on environmentally responsible activities is significant only for privately controlled PCTEs. Furthermore, the moderating influence of organizational visibility is validated. The implications of these findings for the broader research on political connections and CER are thoroughly discussed.

In the Dutch health care system of regulated competition, health insurers are assigned the crucial role of prudent purchasers and expected to critically contract providers based on the quality and prices of their services. Thus far, however, these organisations have struggled to fulfil this role. This study sheds new light on the purchasing behaviour of Dutch health insurers. We examine how insurers perceive the context in which the value-based purchasing of hospital care should take shape, and we draw on insights from institutional theory to frame our analysis. Our findings are based on a series of semi-structured interviews (n = 18) with employees and representatives of several insurer companies whose combined market shares add up to over 90 per cent of all premium payers. Our analysis highlights an environment in which market mechanisms are tangled up with historically rooted budgeting practices, where insurers are pressured to sustain rather than critique hospitals, and where self-regulating medical professionals are firmly supported by society’s deep-seated belief in the quality of their services. Like many other organisations, Dutch health insurers tend to conform to their institutional environment. While this conformity may aid them in organisational stability and survival, it also restricts their ability to purchase prudently.

This study investigates how institutional origin affects the dot tax haven (DTH) internationalization of Chinese family firms (FFs). Drawing on institutional theory and the mixed gamble perspective, we propose that restructured FFs (RFFs), originating from state-owned enterprises (SOEs), are more likely to engage in DTH internationalization than entrepreneurial FFs directly established by family founders. This propensity is attributed to the institutional legacies inherited from their SOE predecessors, which create a distinct potential gain-loss calculus. Our empirical analysis of publicly listed Chinese FFs from 2012 to 2021 demonstrates that restructured FFs are 30% more likely to use DTH and establish 43% more DTH subsidiaries than entrepreneurial FFs. This tendency, however, is mitigated by the firms’ economic ties to financial institutions. Our study enhances understanding of FFs’ global entrepreneurial decision-making, contributing to FF heterogeneity research. A novel aspect of our study is examining the impact of institutional legacies on FFs – a topic less explored in family business literature. Furthermore, our findings provide insights for policymakers and regulators, emphasizing the importance of tailored policies that consider the intricate interplay between institutional origin and contemporary entrepreneurial goals in FFs.

Territorial restructuring through amalgamating local authorities has figured prominently on the agendas of European governments for many decades. Precisely where and when restructuring occurs is poorly understood, although it is broadly assumed to be initiated in response to fiscal stress, urbanization, and functional decentralization. Using a large-N approach with a 30-year time series for 39 European countries, this article demonstrates that associations between these problems and territorial restructuring depend on institutional decision rules, specifically whether the power to decide on local government amalgamations is centralized or dispersed. The findings indicate that policymakers at the local level are particularly attentive to demographic problems, whereas policymakers at the central level pay more attention to problems related to policy delivery. We outline theoretical and practical implications.