Funding sources and performance management systems: an empirical study

Abstract

Purpose The purpose of this paper is to explore how performance management systems in nonprofit organizations are influenced by their funding sources. It explains how resources motivate organizations to diversify their strategies with attended performance management systems. Design/methodology/approach It adopts a qualitative case study approach involving semi-structured interviews with key informants in a nonprofit organization to understand the evolving nature of performance management systems associated with different funding sources. Findings The findings suggest that the case study organization changed its revenue base along with its performance management systems to satisfy the reporting and accountability requirements of different funding sources. Despite external funding sources detailing different restrictions and requirements, the overall performance management system was able to manage these different expectations. Research limitations/implications This study is based on a single case study, and its findings need to be interpreted with care, as there are differences between nonprofit organizations because they differ in their environments, services and funding. Originality/value This paper contributes to extant knowledge on how organizational performance management is influenced by funding sources, providing insights at the operational and governance levels.

The Influence of It Governance and It Capability on The Performance of Private Higher Education Institutions: The Mediation Role of Performance Management Systems

“…PMS in HEIs tend to emphasize academic activities, research, teaching workload, financial support, publications, faculty and student activities (Thirumanickam & Ahmad, 2013). From the results of previous research, PMS is considered to improve organizational performance (Alam et al, 2021;Kumar et al, 2015;Soewarno et al, 2022). Based on the description and explanation above, the hypothesis that can be tested is formulated as follows: H5: Performance management system has a positive effect on organizational performance.…”

Crowdfunding Success Factors: Financial Information and Advertising Finance

“…For every business entity, funding is important to meet the operational costs of its business. [1] stated that this funding can come from internal and external funding. Even though making decisions about these sources of funding has its own consequences, [2] suggest that businesses can optimize external funding by seeing it as a mechanism that influences capital allocation efficiently.…”