Developmental Culture and Effectiveness in Nonprofit Organizations

Nonprofit organizations have historically been seen as a vanguard in U.S. civil society, supplying places and spaces for innovation and change to flourish. According to the Competing Values Culture Framework (CVCF), a developmental organizational culture, characterized by innovation and risk-taking, may help organizations respond to changes in their operating environments and be more effective at boundary-spanning activities, such as fostering external support, acquiring resources, and spurring growth. Despite its importance, the culture–effectiveness relationship has not been studied sufficiently in nonprofit organizations. The exploratory study described in this article examines the links between developmental culture and nonprofit organizational effectiveness. Results suggest that nonprofit executive directors see organizational culture as more than a phenomenon to be experienced. Specifically, findings indicate that executive directors perceive there to be a positive and significant relationship between developmental culture and how effective their organization is at performing boundary-spanning activities. The practical and theoretical implications of this finding are discussed.