Dynamic Capabilities and Organizational Performance in the Nonprofit Sector

Abstract

Dynamics capabilities (DCs) is a relevant approach for understanding performance in the for-profit environment. However, due to the lack of studies, we cannot say the same about the nonprofit environment. Based on this potential gap, this study validates a scale to measure the DCs in the context of the Nonprofit Sector and also verifies the relationship of DCs in the performance of these organizations. Data from a survey with 169 Brazilian nonprofit organizations were analyzed through the application of confirmatory factorial analysis. The results suggest that adaptive, absorptive, mobilizing, and innovative capabilities comprise the DCs of nonprofit organizations, and the performance of these organizations can be measured by the dimensions of control and growth mechanisms. In addition, DCs have a direct and significant effect on the performance of the studied organizations.