Fostering Orientation to Performance in Nonprofit Organizations through Control and Coordination: The Case of Corporate Foundations and Founder Firms

Abstract

Purpose

This chapter investigates the impact of coordination and control mechanisms on the orientation to performances, looking at the relation between Corporate Foundations and their Founder Firms. The research starts from the consideration that the relationship between CFs and Founder Firms can be considered similar to the relationship between headquarter and subsidiaries in large corporations, as the ties are very strong and significant.

Methodology/approach

In order to address the impact of control and coordination mechanisms on CFs’ orientation to performance, we managed a survey addressed to 188 CFs from six European countries, representing the most significant context for corporate philanthropy in Europe.

Findings

The results of a linear regression show that only selected mechanisms are effective for boosting CFs’ orientation to performance, and that these tools must be adapted to the specific nature of the CFs.

Research implications

The study can help Founder Firms to identify the more effective mechanisms to improve the performance of the CFs they support, in order to ensure the possibility for both the parties to pursue the shared value creation.

Originality/value

The research has put in evidence that CFs must be explored taking into consideration their close tie to Founder Firm, which differentiates them from other interdependent foundations.

Citation

Minciullo, M. (2016), "Fostering Orientation to Performance in Nonprofit Organizations through Control and Coordination: The Case of Corporate Foundations and Founder Firms", Governance and Performance in Public and Non-Profit Organizations (Studies in Public and Non-Profit Governance, Vol. 5), Emerald Group Publishing Limited, Leeds, pp. 207-232. https://doi.org/10.1108/S2051-663020160000005009