Abstract
We evaluate non-profit organizations involved in the provision of victim services in Germany to determine how various aspects of coopetition affect the innovative behavior of these organizations. Examining a sample of 111 victim service organizations, we conduct a multi-method study to assess their innovative behavior and determine the impact network structures and coopetition have on innovative behavior. Following an initial qualitative assessment of the sector, we conduct a quantitative survey and collect network data of the relevant organizations. Using the network data to generate various network indicators, we then match network and survey data to complete the dataset. Our findings indicate that caution may be recommended when considering results of business research regarding innovative behavior in the context of the nonprofit sector.
Introduction
Innovation and its relationship with coopetition, a relationship consisting of both cooperation and competition (Bengtsson and Kock, 2000), has generated great interest among business and economics researchers, and a number of theories have been developed regarding the impact that collaborating with competitors has on an organizations’ innovation activity. Empirical research generally points to a positive relationship between coopetition and a for-profit company’s innovation propensity (e.g., Tellis, Prabhu and Chandy, 2009). However, limited research focuses on or discusses innovation in the non-profit sector (Herman, 2011), and even less on how coopetition affects the innovative behavior in the non-profit sector (Guo and Acar, 2005). The purpose of this study is to determine what effects coopetition has on the innovative behavior of non-profit organizations.
Non-profit organizations today are facing structural changes such as increased competition for limited funding, fewer volunteers and employees and cultural shifts that are forcing them adapt to what are becoming increasingly for-profit, market-like conditions (McDonald, 2007). Innovation is a critical activity for any organization, and it has been identified as one of the critical factors for organizational success. In the for-profit sector, innovation has generally been determined to positively influence organizational performance (e.g., Damanpour, Szabat, and Evan, 1989), as has inter-organizational collaboration (Faems, Van Looy, and Debackere, 2005). But what is the relationship for non-profit organizations? With the structural shift facing non-profit organizations, being innovative and developing new ideas for service provisions, generating financial security and improving efficiency are becoming vital to their survival and success.
Focusing on the victim services sector in Germany, we apply a mixed-methods approach to address this research questions. The first step was of explorative, qualitative nature and consists of over 30 initial qualitative interviews that were conducted either in person or via telephone. We also conducted group interviews, and attended forums and conferences in this stage. A quantitative survey was sent to all relevant organizations in three German states and included a network analysis section. Follow-up interviews were conducted with respondents in order to supplement the responses.
Preliminary results of our analysis suggest that the organizations involved in our research may be unable to productively harness innovation potentials stemming from collaboration with other, competing organizations, and that in fact, coopetition may rather stifle this potential. If the effect of coopetition on innovation is negative, then nonprofit organizations need to develop new strategies and pathways to innovation. Because of the importance of innovation to organizational success, and considering the structural changes occurring in the third sector, with non-profits increasingly turning to for-profit strategies in hopes of securing their financial future and support base, it is vital to understand the mechanisms driving innovation in non-profit organizations.
References
Bengtsson, M., & Kock, S. (2000). ”Coopetition” in business Networks—to cooperate and compete simultaneously. Industrial Marketing Management, 29(5), 411-426.
Damanpour, F., Szabat, K. A., & Evan, W. M. (1989). The relationship between types of innovation and organizational performance. Journal of Management Studies, 26(6), 587-602.
Faems, D., Van Looy, B., & Debackere, K. (2005). Interorganizational collaboration and innovation: toward a portfolio approach*. Journal of product innovation management, 22(3), 238-250.
Herman, R. D. (2011). The Jossey-Bass Handbook of Nonprofit Leadership and Management. John Wiley & Sons.
McDonald, R. E. (2007). An investigation of innovation in nonprofit organizations: The role of organizational mission. Nonprofit and voluntary sector quarterly, 36(2), 256-281.
Tellis, G. J., Prabhu, J. C., & Chandy, R. K. (2009). Radical innovation across nations: the preeminence of corporate culture. Journal of Marketing, 73(1), 3-23.
