Leadership Practices and Dimensions of Organizational Capacities: Supporting Innovation in Small Nonprofits

Innovation is key to increasing capacity and overall organizational survival for small nonprofit organizations providing safety net services. Small nonprofits are defined as organizations with an annual budget at or below 5 million dollars. Leadership practices and interventions designed to assist in building capacity have significant implications for the future of small nonprofit organizations. This study explores relationships among leadership practices, dimensions of organizational capacities, and innovation in small nonprofit organizations providing safety net services. The quantitative study utilized a combination of three data collection instruments: Complexity Leadership Interaction Modes Instrument, Nonprofit Capacity Instrument, and the Value Innovation Potential Assessment. Survey instruments were electronically distributed to a sample of 111 nonprofit executive leaders across New York State. Data analysis included descriptive statistics and a linear regression model. Results from this study indicate a small positive relationship between leadership practices, dimensions of organizational capacities, and innovation. Due to the lack of random sampling and small sample size the results cannot be interpreted to represent a broader population. Further research is recommended to explore the relationship among the identified variables with a large representative sample from urban, suburban, and rural areas. Findings from additional research would better inform executive leaders of small nonprofits how to navigate innovation in a landscape of shrinking resources juxtaposed with acutely increasing need