Fields of Action to Advance the Digital Transformation of NPOs – Development of a Framework

Abstract

Technology-based business improvements characterize the so-called digital transformation (DT). For non-profit organizations (NPOs), with their unique value creation structure and specific preconditions in terms of staff and resources, keeping up with the DT is challenging. Still, opportunities for the DT are unknown. Thus far, there are no comprehensive guidelines for DT strategy development in NPOs. Both digital value creation and digitally supported communication with customers can lead to competitive advantages. Therefore, NPO decision-makers must understand the opportunities and the challenges of DT. In our research approach, we aim to answer the research question: What are the fields of action for the digital transformation in NPOs? Following a grounded theory approach, we have developed a theoretical framework including fields of action and guidance for the strategic advancement of DT in NPOs. The results show that NPOs need to be aware of their digital communications channels with volunteer staff, customers and donors. A clear DT vision and new roles help NPOs meet this challenge.

Best practices for digital transformation based on a systematic literature review

“…Another method is investing in continuous education in digital skills through training and development programs (Brink et al, 2020;Diener & Spa cek, 2021;Fischer et al, 2020;Nair, 2019). This is important because keeping pace with the latest technologies is challenging for many employees yet necessary to thrive in the digital economy (Ivan ci c et al, 2019;Mugge et al, 2020).…”

“…Accordingly, many DT projects fail because their backbone is insufficiently capable (Diener & Špaček, 2021). Several authors emphasize that firms must optimize the flexibility, standardization and operation stability of their IT systems (Brink et al. , 2020; Fischer et al.…”

“…, 2020). Educating existing employees is not always easy, as many employees are hesitant toward digitalization (Brink et al. , 2020).…”

“…Once the employees are aware of the need for change, they must be allowed to experiment and innovate, while leaders and HR departments ensure that the business is acceptive for potential failures of the projects (Nair, 2019). In other words, an open culture that encourages employees' creativity and risk-taking projects is recommended (Brink, Packmohr, & Vogelsang, 2020;Fischer et al, 2020;Matzler et al, 2018). Some companies offer monetary or intrinsic rewards for innovation efforts (Fitzgerald, Kruschwitz, Bonnet, & Welch, 2013).…”

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“…of digital channels of communication with volunteers, clients and donors (Brink et al, 2020)Ivančić et al (2019), important factors for successful digital transformation are the ability of an organization to change and operational excellence in integrating external digital services with internal IT support.In the opinion of Tabrizi et al (2019) digital transformation is not about technology but about the right mindset to change, and adapt, as well as organizational culture and processes before deciding what digital tools to use and how to use them.…”