Understanding the Diverse Purposes of Performance Information use in Nonprofits: An Empirical Study of Factors Influencing the Use of Performance Measures

Abstract

Performance measurement is not a panacea that automatically cures management problems and leads to success. To evaluate the effectiveness of performance measurement, the use of performance information should be investigated. In this article, the author examines how nonprofit organizations use performance information and what factors are related to its uses. Using survey data from California nonprofits (n = 143), the author finds that performance information use is influenced by government funding, range, and credibility of performance measurement, developmental culture, and stakeholder participation in the decision-making process. This study contributes to our understanding of performance information use in the nonprofit sector.