Cultural transition and organizational performance: the non-profit context

Environmental pressures mean that non-profit organizations are having to transition to an internal culture that blends values supporting both social and economic objectives. The authors examined the effect of cultural transition on performance for a large sample of non-profit organizations. Performance was found to decrease before increasing during cultural transition, i.e. there is a U-shaped relationship between organizational culture and performance. The paper’s findings have implications for non-profit management and academic research.