To What Extent Do Currently Accepted For-Profit New Project Development Success Factors Apply in the Small Nonprofit Context in the UK?

Abstract

The Third Sector in the UK continues to grow. Many non-profit organisations are being influenced by the for-profit sector in several areas. The importance of innovation in this increasingly competitive environment is becoming more apparent, though the benefits of applying well developed for-profit New Project Development (NPD) frameworks to this context are still unknown. This study aimed to provide an insight into NPD practices in small non-profit organisations in the UK by exploring how accepted “Best Practice” dimensions manifest themselves in this context. The first stage of the study was an exploratory within Case-Study looking at Christian Education Movement (CEM) as part of a Knowledge Transfer Partnership (KTP). This wast hen encompassed within a wider cross-case comparative study with 11 small non-profits. A purposive sampling method was used to identify these organisations. Face to face and telephone interviews were conducted and transcribed. All data was coded using broad predetermined categories and a matrix analysis identified themes and patterns. In some ways, small non-profits mirror for-profit organisations in their need for a flexible yet formalised process, their dependence on market knowledge and the necessary consideration of project feasibility. Small non-profits also resemble project-based and service organisations in their overlapping Concept Testing and Product Development. However, new development issues were identified, like the clear impact of limited resources leading to a tendency to work in partnership, the necessity of staff taking on multiple roles, and the influence of funding availability. Small non-profits tend not to consider many of the issues raised in this study, so it provides an opportunity to reflect on some of the things they do intuitively. Overall, an increased awareness of the individual stages of the NPD process and the efficiency of their execution would be beneficial for all managers in this context. Most non-profit marketing literature is based on larger organisations, so does not consider the impact of resource restrictions on organisational activity. This study also extends contextual understanding in for-profit NPD literature. It provides an insight into possible reasoning behind, and consequences of non-profit activity, proposing a testable framework and suggestions for further research, in order to make a step closer to a non-profit “Best Practice” framework for successful NPD.