Competitiveness of Nongovernmental Organizations in Developing Countries

Abstract

This article addresses competition between nonprofit organizations. Nonprofit organizations operating in countries where the sector is in its early phase (e.g., Poland) do not appear focus on strengthening their competitive position as their first or even second priority. The contrasting alternative to competition strategies are strategies of cooperation. This article indicates that the key type of interaction between nonprofits is cooperation. Empirical studies conducted on a random sample of 200 organizations have revealed there is both competition and cooperation in the Polish Third Sector. These findings may have practical implications and drive further research.

Snuggling Together or Exploring Options? A Multilevel Analysis of Nonprofit Partnership Formation and Evolution in an Unstable Institutional Context

“…At the microlevel, we examine individual partner selection. At the mesolevel, we assess how factions or subgroups emerge based on structural positions and also individual partnership choices, motivated by both donors’ influence as well as competition for credit and funding (Domanński, 2012; Sharp, 2018), and at the macrolevel, we examine the global structure of the partnership field to understand how it became fragmented as an accumulation of the choices made at the microlevel. Examining this over time has the added benefit of shedding light on dynamic processes in partnership fields as most studies using network analysis are limited to static, cross-sectional data.…”

“…Unstable contexts are characterized by volatility of and limited funding that is essential to the operation of these organizations (AbouAssi & Jo, 2015; Haddad, 2017). Organizations are then driven by their interest to secure resources and solidify credibility to ensure their survival (Domanński, 2012; Sharp, 2018). However, strong personal relationships or professional ties could mitigate the potential negative impact of intense inter-organizational competition for government and donor funding on collaboration (O’Leary & Vij, 2012; Qian et al, 2020).…”

Existential Angst and Identity Rethink: The Complexities of Competition for the Nonprofit

“…As discussed in the literature review, a number of previous studies have argued that competitive market activity exposes the NPO to significant risk and, as such, nonprofits tend to avoid competitive activity (e.g., Austin, 2000; Cornforth et al, 2014; Domański, 2011; Starnes, 2000). The evidence from the current study suggests a more complex and nuanced pattern of behavior.…”

“…For example, strategic planning is widely practiced in the NPO sector in the United States (Bryson, 2004). By way of contrast, Domański (2011) shows that, in Poland, for example, organizations try to avoid undertaking strategic planning. Nonetheless, while acknowledging this potential limitation, the point should not be overstated, pending further study.…”

“…Some scholars have argued that NPOs prefer cooperative rather than competitive behavior (Austin, 2000; Cornforth, Hayes, & Vangen, 2014; Domański, 2011; Starnes, 2000). In a study of third-sector organizations in Poland, Domański (2011) found that the level of competitiveness is low, and that they prefer a cooperative approach. Chetkovich and Frumkin’s (2003) study of the Red Cross identifies two types of competitive strategies: efficiency and differentiation.…”