Does Size Really Matter? Organizational Size and Innovations in Nonprofit Organizations

Abstract The purpose of this study was to investigate the relationship between size and innovation in a sample of nonprofit organizations. The author employed a number of size estimates (personnel and financial) and assessed different types of innovations (administrative and technological). Additionally, since the failure to take into consideration important contextual variables has been attributed to producing misleading conclusions about the relationship between size and innovation, the author controlled for those variables (formalization, centralization, specialization, leadership, board size, and organization's age) when assessing this relationship. The results of hierarchical multiple regressions showed that although the personnel size estimates were important predictors by themselves, their significance disappeared when contextual variables were introduced. Board size and organization age were significant predictors of administrative innovations. Board size was the only significant predictor of technological innovations, as well as of a total number of innovations.