M ULTIPLE CHANGES in their external environments are forcing nonprofit organizations to search for new and more effective ways of service delivery. As innovation becomes critical to the survival of these organizations, it is important that nonprofit managers know how to shape and influence the work environment to make it conducive to creativity and innovation. An understanding of the factors affecting an organization's capacity to innovate is central for succeeding in such efforts.One of the major factors repeatedly suggested to affect innovation is leadership
Th is study examines the eff ects of human and structural/process factors on two types of innovationadministrative and technological-in a sample of nonprofi t organizations. Th e results indicate that factors that are favorable to administrative innovations diff er from those that are conducive to technological innovation. Th ree variables are signifi cant predictors of administrative innovation: centralization, transformational leadership, and the executive director's job tenure. Transformational leadership contributes signifi cantly to the model of technological innovation. Based on the results of this study, the author provides implications for nonprofi t management and future research.
There is a growing consensus that boards of directors “matter,” but the specific effects of board influences on organizational innovation remain unclear. Although boards of directors have been studied extensively in diverse disciplines—finance, management, sociology, nonprofit management, and economics—those studies have focused primarily on how board variables influence organizational effectiveness and performance. Missing from these studies is explanation of the relationships between the board of directors and organizational innovation (Wu, 2008a). This article links previous research and theories on governance and organizational innovation, examines how the board of directors may influence organizational innovation, and presents an integrative model that includes direct and indirect linkages between the board demographic and process variables, board effectiveness, and organizational innovation.
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