Method
Organisations across the world have witnessed a major change in the past one decade due to a number of factors such as globalisation, service-based economics, decentralization of responsibilities and changing values. This drastic change has been more prominent for non-profit organisations that struggle to make a mark on the global platform (Zhu et al., 2016). Against this context, it has been found that non-profit organizations are considering a diverse range of strategic management approaches for ensuring fulfilment of their organisational objectives (Hill et al., 2014). The present systematic literature review aims to synthesise findings of literary sources that have analysed strategic management for non-profit organisations. The review helps to gain insights into how non-profit organisations plan and implement strategies that are beneficial for their growth and optimal functioning.
The present systematic literature review has been carried out using a rigorous scientific design that is based on pre-stated method. The valuable resources have been extracted from the respective databases and sorted in a logical and systematic manner to highlight the key findings of the study. The electronic databases that have been used for the review are ProQuest, PsycINFO, Emerald Journals, Scopus and Web of Science. The search terms that have been used for conducting the research are ‘strategic management’, ‘strategic’ ‘management’, ‘nonprofit organisation’, ‘organisation’. The Boolean Operations have been used for the review are AND and OR. The meticulous search has been followed by a proper selection of articles. Relevant research articles from the last ten years, which is publication after the year 2007, were considered for the research. Only those articles that had full-text version were selected. The title of the retrieved articles was analysed before studying the abstract of the papers. 21 articles were selected for further screening. The next step was the analysis of the complete articles for understanding the applicability these studies had. Finally, 6 articles were selected for the present review. These were published in English language and addressed the research question adequately.
Kong (2008) studied the advancement of strategic management in the non-profit context. The study focused on understanding the concepts of SWOT analysis, knowledge-based view, industrial organization, intellectual capital (IC) and resource-based view and core competency as applied to strategic management context in non-profit organisations. The researcher argues that the IC concept has more effectiveness when compared to the other concepts in non-profit sectors. As argued by the authors, IC can be defined as the possession of applied experience, knowledge, professional skills, organisational technology and customer relationships that are beneficial for gaining a competitive edge over other organisations. Organisations are to invest in information and knowledge enhancement for their betterment. In this regard it is to be stated that IC has three main non-financial components that have relationship between each other; human capital, structural capital and relational capital. The researcher assert that IC is a prime differentiating factor providing a competitive market position to the respective organization. A knowledge-based economy can be established in contrast to an industrial-based economy.
Main Findings
Further, it is stated that Intellectual capital is in a position to allow non-profit organisations to fulfil their social objectives. In addition, the resources can also be used effectively through this method. The cherished qualities of the organisations can also be sustained if IC is considered as an element of the strategic management conceptual framework for the assignment. IC helps organisations to maintain their independence and pursue their social missions. The approach compares the non-profit leaders to consider rethinking their social values and mission. Resource diffusion and goal displacement are the ultimate outcomes of implementing this approach across the organisation.
Kriemadis and Theakou (2007) highlighted that strategic planning is extensively upheld by organisations as an elementary part of their organisational functioning. The researchers assessed the concept of strategic management as developed by nonprofit organisations to provide an review of the literature present on the chosen topic. Strategic management is a method for positioning an organisation through the use of resources as per the identified goals. For providing increases value for money as well as improving the outputs on a genuine basis, non profit organisations are turning to strategic management models and systems. The five strategic management models that the researchers have highlighted in their paper are Basic Strategic Planning, Issue-Based Planning, Alignment Model, Scenario Planning, and Organic Planning. One or more of these models can be considered by a nonprofit organsiaiton on the basis of the goals it has to fulfil along with the available evidence. The paper also recommends that strategic management measures are not static products and that organisations must consider advancing it and bringing evolution into it. Following the constant changes in the business environment and acting upon them serves as the best approach for bringing changes in the strategic management process. Nonprofit organisations must consider developing a model of strategic planning that is unique to its mission and objectives.
The strategic use of information technology in nonprofit organisations have been under focus for the last few years. Considerable research has been carried out to identify the benefits that such organisations gain by such strategic approach. Hackler and Saxton (2007) put forward a paper on this topic to highlight the increasing capacity and potential of information technology to be integrated into the strategic management system of non-profit organisations.
As per the authors, non-profit settings are using information technology for enhancing their mission-related outcomes and boosting their performances. To summarise, non-profit organisations are functioning in a world where there are greater demands, more scrutiny and less resources. To combat these factors, as well as increased competition, non-profit organisations are adhering to strategic management practices off late. With the rapid diffusion of IT elements into the organisation, the link between IT and performance of the organisation has been scrutinised immensely. The basic technical infrastructure is now being considered by maximum non-profit organisations. The IT-based potential is now exploited by fostering a set of practices and capabilities without which success cannot be achieved. When it comes to workstation hardware, it has been found that almost 98% of the organisations have some form of a desktop computer while 59% have laptops. Further, 4.5% have housed a mainframe computer. Internet access and basic networking are being increasingly diversified, and information is now bein shared electronically among the different levels and departments. Internet is being accessed through advanced and highspeed broadband connections such as DSL, cable modem or fractional T1. The six areas where organisational characteristics are making improvements are IT planning, internet and website capabilities, IT staffing and training and IT budgeting, increased participation in IT decision making and leadership skills for applying the strategic potential of IT. Development of these reinforcing competencies is essential for creating a nonprofit organisation that is IT savvy and translates IT architecture into strategic results.
Akingbola (2014) put forward a model for strategic non-profit human resource management for explaining the determinants of strategic human resource management in such organisations. The fundamental premise of strategic human resource management is based on the significance of using human resources to organisational capability. The underpinning principle of this strategy is to use systems of planned human resource deployments for enabling the organisations to achieve the desired success. Non-profit organisations are at present focusing on aligning overall management process with strategic human resource management processes. Human resource management in a strategic manner in nonprofit organisations reflect on social capital and human capital characteristics. The social network of employees, their knowledge, behaviour and skills are continually been exploited for facilitating human resource management processes. Organisations are to carry out multidimensional interactions and processes in the internal and external environment to ensure that human resources are managed in an effective manner. Secondly, core resource base driving the structure of the organisation is to be enhanced to a considerable extent. Thirdly, the interactions between employees, the social exchange of ideas and expectations between employees must rest upon unique orientations of leadership. Further, the interaction between employees is to signify diverse structures of resource dependence that ultimately lead to organisational benefits.
The suggestions put forward by the authors are unique and noteworthy. Non-profits implementing growth strategies adopt a principle of strategic human resource management that enable value-based principles. Further, nonprofits that adopt a preservation strategy gain more benefits. Thereafter, organisations might consider implementing a root strategy within the context of human resource management. Further, nonprofits must consider adopting different human resource processes at different stages of the life cycle. Lastly, nonprofits with employees having less interchangeable responsibilities and roles have better human resource management outcomes.
Zhu et al., (2014) analysed the relationship between strategic board involvement and organisational performance in nonprofit organisations. Their research studied the manner in which board processes such as information utilisation, board meetings and external reviews influence and guide the participation of managers in strategic decision-making. In addition, it highlighted the organisational outcomes for the same. The main finding of the study was that board meetings, sufficient information utilisation and access to comprehensive information are beneficial for for-profit organizations in course of taking an active role in shaping their success graph. In contrast, non-profit organizations can enhance their strategic involvement and achieve success by only holding board meetings. Further, the results indicated that involvement of managers and boards in the formation of organisational policies is capable of enhancing innovation, industrial competitiveness and financial performance for a non profit as well as for-profit organizations.
Nah and Saxtion (2012) highlighted how the use of social media is being is continually considered by nonprofit organiaiations as a strategic step. As per the authors, organisational capabilities, strategies and governance paly crucial roles in the adoption of social media for better organisational outcomes. The diffusion of social media, such as Facebook, Twitter and other applications, is flourishing in light of novice opportunities for nonprofit organisations to engage in effective communication. Social media technologies are now being adopted by nonprofit organisations that are considering the platform as a progressive one. Facebook has, in particular, gained increased attention in the context of nonprofit organisations for being a communication tool supplementing traditional websites. The paper strongly points out that nonprofit organisations focusing more on getting revenues from market-based programs instead of donations and grants are to rely on social media for facilitating communication with the clients. Fund raising might have a negative relation with the frequency of organisations in using social media platforms. For organizations that are nonprofit, the basic goal is to uphold a social mission which is the establishment of a public value. The strategy employed for fulfilling the aforesaid mission influences adoption and subsequent utilisation of social new media in a continual manner.
Utilization of social media might be dependent on preexisting capacities and resources. The governance characteristics of the organisation play a crucial role in allowing employment of resources. Further, governance characteristics are also developed for driving implementation of strategies. Membership structure and organisational efficiencies are important determinants adoption and use of social media.
The present literature review identifies some noteworthy points in relation to strategic management for non-profit organisations. Strategic management for nonprofit organisations is important for enabling such organisations to achieve their mission and work towards their vision. Strategic thought and action when implemented in collaboration can ensure that the organisations gain reputation in its domain. The key strategic management approaches are the use of social media, board strategic involvement, implementation of advanced IT system, strategic human resource management measures, strategic planning and exhibit of intellectual capacity. While all these measures hold immense potential to bring organisational improvements, the exact manner in which all these are to implemented is still to be researched about. To assert that nonprofit organisations carry out a proper fusion of proper planning and robust decision making, decision-makers must act as strategic planners across levels. The perfect blend of expertise and knowledge can only promote the implementation of the mentioned strategies in favour of the organisation. The more the decision makers consider implementing these measures in their system, the more the setting would be in prominence. It is common to face challenges and issues while implementing the strategic measures into practice. For combating this concern, nonprofit organisations need to analyse situational factor and come up with more robust planning models. In the end, strategic management holds many implications for nonprofit organisations at the present era.
References
Akingbola, K. (2013). A model of strategic nonprofit human resource management. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 24(1), 214-240.
Hackler, D., & Saxton, G. D. (2007). The strategic use of information technology by nonprofit organizations: Increasing capacity and untapped potential. Public Administration Review, 67(3), 474-487.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
Kong, E. (2008). The development of strategic management in the non?profit context: Intellectual capital in social service non?profit organizations. International Journal of Management Reviews, 10(3), 281-299.
Kriemadis, T., & Theakou, E. (2007). Strategic Planning Models in Public and Non-Profit Sport Organizations. Choregia, 3(2).
Nah, S., & Saxton, G. D. (2013). Modeling the adoption and use of social media by nonprofit organizations. New Media & Society, 15(2), 294-313.
Zhu, H., Wang, P., & Bart, C. (2016). Board processes, board strategic involvement, and organizational performance in for-profit and non-profit organizations. Journal of Business Ethics, 136(2), 311-328.
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