Is There a Nonprofit Advantage? Examining the Impact of Institutional Context on Individual-Organizational Value Congruence

Shuyang Peng, Sheela Pandey, Sanjay K. Pandey

Research output: Contribution to journalArticle

25 Scopus citations

Abstract

This article addresses an important question: do nonprofit organizations have an advantage over public organizations in fostering individual-organizational value congruence? The authors argue that nonprofit organizations do have an advantage. This is because institutional differences between the two sectors become manifest through nonprofit status and the extent of external control, which influences the organization and the individual. External control and sector status (nonprofit versus public) determine the extent of centralization, organizational goal ambiguity, and work autonomy. In turn, these three organizational characteristics shape individual-organizational value congruence. Although the results provide support for the nonprofit advantage thesis, it is worth noting that organizational effects on individual-organizational value congruence are more powerful. Indeed, the results suggest that managerial and organizational actions, compared with sector status, are more likely to influence individual-organizational value congruence.

Original languageEnglish (US)
Pages (from-to)585-596
Number of pages12
JournalPublic Administration Review
Volume75
Issue number4
DOIs
StatePublished - Jul 1 2015

All Science Journal Classification (ASJC) codes

  • Sociology and Political Science
  • Public Administration
  • Marketing

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