How can nonprofit boards innovate for growth? An integrative‐systematic review

Abstract

Despite the nonprofit sector's significance in economic contribution, workforce, and social impact, it faces unique innovation hurdles and is not well positioned for sustainability, growth, and prosperity. However, with only a partial, disconnected view from the extant research, we do not understand the relationship between boards and nonprofit innovation for growth. To address this problem, we conducted a systematic literature review drawing on 27 studies published since 2000 to provide a first‐in‐field and comprehensive integration of disparate, mono‐factorial research. We conceptualize a new, multifactorial model that depicts a blend of board composition, relations and practice factors, and organizational and environmental characteristics that influence nonprofit innovation for growth.

Determinants of perceived innovation in non‐governmental organizations in Nepal

“…This contrasts with some prior research that found a positive relationship between gender diversity and innovation (Galia & Zenou, 2013;Miller & Del Carmen Triana, 2009). However, as highlighted in the literature, board composition and diversity alone are insufficient to drive innovation-organizational practices and processes play a key enabling role (Holgersson & Hvenmark, 2023;Richardson et al, 2023). Even when female representation on boards increases, unequal participation and out-group biases can persist, limiting cognitive diversity benefits (Jaskyte, 2012;Torchia et al, 2018).…”

“…Boards contribute to an organization's performance and innovation by providing advice and unique leadership contributions (Castanias & Helfat, 1991Zahra et al, 2000). The composition of board is considered as one of the key factors related to innovation in nonprofits (Richardson et al, 2023). Board members' diverse professional knowledge, skills, and experiences can also contribute to strategic decision-making and organizational innovation.…”

“…The impact of boards of directors on organizational innovation has been extensively studied in Western NPOs (Jaskyte, 2004(Jaskyte, , 2011(Jaskyte, , 2012(Jaskyte, , 2013(Jaskyte, , 2017(Jaskyte, , 2018Jaskyte & Dressler, 2005;Shin & McClomb, 1998), however, evidence from developing countries and various third sector organizations remain limited (do Adro et al, 2022;do Adro & Leitão, 2020;Jaskyte, 2015;Richardson et al, 2023;Shin & Choi, 2019). The challenges faced by NGOs in developing countries, such as cultural differences and contextual differences, may affect the ability of innovation models to apply across regions and sectors (Hasan & Onyx, 2008;Jaskyte, 2012Jaskyte, , 2015Steen-Johnsen et al, 2011;Steensma et al, 2000).…”