Valuing Organizational Values: Assessing the Uniqueness of Nonprofit Values

Abstract

Abstract Practitioners and researchers alike often assume a unique nonprofit value set as a nonprofit-specific source of competitive advantage. Empirical research assessing this values–performance link remains scarce though. In response, this study tests for the predicted competitive advantage derived from nonprofit values and assesses value prioritization and value implementation with a twofold measurement. An empirical study, conducted among German hospitals, reveals that differences in value prioritization exist and are partially linked to hospital ownership. However, these findings reject the idea of a unique nonprofit value prioritization; no performance differences arise across value prioritization groups. Nonprofit organizations do not differ in their value implementation either, though some implemented values serve as organizational resources and are associated with better performance. The authors discuss the managerial importance of values as a firm asset, as well as avenues for further research.