Organizational and social innovation in Non-Profit Organizations performance in the context of an emergent economy

Abstract

Purpose: This study provides empirical evidence on the innovations that Nonprofit Organizations (NPOs) in Colombia have implemented within their own management to address social problems which are the object of their institutional mission.

Design/methodology/approach: This research is based on information obtained from a survey applied to executives of Colombian NPOs. Multiple linear regression models were developed to check the partial effect of the set of independent variables (Organizational and Social Innovation) over the dependent variable (Organizational Performance). Main Components Analysis was applied to grouping the considered variables.

Findings: Empirical evidence indicates that Colombian NPOs are innovative organizations that advisedly follow management strategies for this purpose. Colombian NPOs have been innovating for their disposition to tackle the social problems implicated in their institutional mission. Evidence indicates that the main components derived from NPOs’ organizational and social innovations are grouped into four: NPO innovation actions to adapt to the environment; internal innovation actions to improve NPO’s performance; variables related with NPO innovation actions to improve their relations with external agents; innovation actions aimed at improving the management of social interventions associated with the mission of the NPOs and the management of institutional projects.

Research limitations/implications: The field work only used the survey technique to obtain the information and only assessed the perception of one of the directors of each of the NPOs participating in the study in terms of both the actions of organizational innovation such as social innovation and organizational performance. Therefore, the study undoubtedly presents bias in that perception.

The technique used for the selection of the sample of the participants was a non-probabilistic sampling, which implies bias in the information and therefore, limitation for the generalization of the results to other contexts. The geographical location of the administration of the NPOs was restricted to Bogota and surrounding municipalities.

Originality/value: An analysis of the relationship between social and organizational innovations with organizational performance in NPOs was carried out in the context of an emerging economy, where the subject has been very little studied and much less with principal component analysis. This in order to contribute to a better understanding of the subject.