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Managing not-for-profit enterprises.

W H Newman, H W Wallender

    Academy of Management Review. Academy of Management
    |December 13, 1977
    PubMed
    Summary
    This summary is machine-generated.

    Business management principles require careful adaptation for not-for-profit organizations. Each non-profit has unique needs and constraints that affect the applicability of standard business concepts for effective management.

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    Area of Science:

    • Nonprofit Management
    • Organizational Studies
    • Business Administration

    Background:

    • Commonly held assumptions suggest business management concepts directly translate to not-for-profit (NFP) sectors.
    • This belief often overlooks the distinct operational environments and governance structures of NFP organizations.

    Purpose of the Study:

    • To critically evaluate the universal applicability of business management concepts in not-for-profit settings.
    • To identify factors that influence the effectiveness of these concepts within diverse NFP enterprises.

    Main Methods:

    • Qualitative analysis of case studies across various not-for-profit sectors.
    • Comparative examination of managerial challenges and strategic implementations in different NFP organizations.

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    Main Results:

    • Not-for-profit enterprises exhibit significant heterogeneity in their managerial requirements.
    • Specific constraints, such as funding limitations and stakeholder demands, critically shape the efficacy of business management tools.
    • A one-size-fits-all approach to NFP management is often ineffective.

    Conclusions:

    • The direct application of business management concepts to not-for-profit organizations requires significant qualification.
    • Effective NFP management necessitates tailored strategies that acknowledge unique organizational needs and contextual constraints.
    • Further research is needed to develop context-specific management frameworks for the NFP sector.