Market orientation and organizational performance in the nonprofit context. Exploring both concepts and the relationship between them.

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. (author´s abstract)Series: Working Papers / Institut für Sozialpoliti

Competitive strategy in socially entrepreneurial nonprofit organizations: innovation and differentiation

Social entrepreneurship has attracted an increasing volume of research in an attempt to understand the basis of successful value creation aimed at solving social problems. In an effort to advance social entrepreneurship research beyond its current focus on conceptualizing the concept, this article addresses the role of innovation in achieving greater social impact. Using multiple theoretical case studies, this research finds that innovation-based competitive strategies of socially entrepreneurial nonprofit organizations substantially contribute to the achievement of social value. Innovation-based strategies are uniquely characterized by a primary focus on differentiation, with innovations directed at product, process, and system change levels. They tend to actively involve both externally and internally focused learning. Nonprofit organizations' innovation strategies are strongly influenced by their organizational characteristics, in particular the need to build sustainable organizations. The article concludes with implications for theory and practice and directions for further research