An investigation into strategic orientation and organizational performance in the nonprofit performing arts context: A stakeholder approach

The primary purpose of this research is to explore the relationship between strategic orientation and organizational performance in the nonprofit arts context. Inspired by the view that nonprofit organizations deliver services that satisfy individual and societal needs, this paper set out to investigate the implications of stakeholder concept on strategic management in the US nonprofit performing arts context. A key postulate central to the argument is that strategic orientation in the nonprofit arts setting is inherent in a stakeholder environment. An organization's sustainability significantly depends on its capability to align with stakeholders interests and to adapt its strategic behaviors in the same regard.; This dissertation takes multiple stakeholders and multi-fold performance consequences into consideration. Components of strategic orientation toward stakeholders in the nonprofit performing arts are proposed. Given the diverse and sometimes conflicting stakeholder interests, this paper also examines the effect of organizational capabilities in aligning with stakeholder interests and adapting strategic behaviors. Respondents for this study were senior executives of nonprofit performing arts organizations in three metropolitan areas including the San Francisco Bay Area of California, the Portland neighborhoods of Oregon, and the Seattle metropolitan area of Washington. A conceptual framework was proposed to test a series of hypotheses. Regression analyses were used to investigate the relationships between strategic orientation toward different stakeholders and multiple dimensions of organizational performance, as well as moderating effects of organizational capabilities. Stakeholder salience and strategic orientations across different organizational life stages is also investigated.; The results demonstrated a positive, but complex, relationship between stakeholder orientation and organizational performance. Strategic orientations toward different stakeholders translate into different dimensions of organizational performance. Organizational capabilities have both direct and indirect effects on the stakeholder orientation-performance relationship. In different life stages, organizations would focus on different issues which translate into different weights on stakeholders.