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Is There a Nonprofit Advantage? Examining the Impact of Institutional Context on Individual–Organizational Value Congruence
Author(s) -
Peng Shuyang,
Pandey Sheela,
Pandey Sanjay K.
Publication year - 2015
Publication title -
public administration review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.721
H-Index - 139
eISSN - 1540-6210
pISSN - 0033-3352
DOI - 10.1111/puar.12357
Subject(s) - congruence (geometry) , ambiguity , organizational commitment , organizational learning , organizational studies , autonomy , organization development , organizational analysis , business , public relations , organizational performance , value (mathematics) , organizational effectiveness , public sector , social psychology , psychology , political science , marketing , management , economics , linguistics , philosophy , machine learning , computer science , law
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.