Solutions out of context: Examining the transfer of business concepts to nonprofit organizations

Small nonprofit organizations face a dilemma when applying management theories and techniques developed for large, private businesses. Research evidence suggests both benefits and problems associated with application of these techniques. To avoid potential problems, nonprofit managers commonly limit the selection and transfer of business techniques to those that solve specific problems or appear consistent with nonprofit orientations. One consequence is that business solutions often create unintended negative outcomes that are due to contextual differences between the two types of organizations. One possible solution to this dilemma is adoption of bundles, or configurations, of practices that introduce important contextual checks and balances along with the specific tools and techniques. We explore this option through a critical, participatory ethnographic analysis of a small nonprofit service organization.