Business-nonprofit partnerships as a driver of internal marketing in nonprofit organizations. Consequences for nonprofit performance and moderators

Abstract

Nonprofit organizations (NPOs) confront competitive pressures derived from complex economic and societal challenges. Their capacity to fulfil their mission increasingly depends on developing successful alliances with key external and internal stakeholders, including cooperative interorganizational relationships. In this context, the aim of this research is to analyze: (1) to which extent business-nonprofit partnerships (BNPPs) foster the development of an internal marketing approach by NPOs; (2) the impact of this approach to human resource management on nonprofit performance; and (3) the possible moderating effect of the funding strategy of the nonprofit. This empirical research, based on a survey to a representative sample of Spanish NPOs, shows that cooperative relationships between nonprofit and business organizations are closely associated with a process of knowledge transfer, resulting in improved nonprofit performance; although these positive effects depend on the capacity of NPOs to generate income from commercial sources.

Full text

Please
cite
this
article
in
press
as:
Álvarez-González,
L.I.,
et
al.,
Business-nonprofit
partnerships
as
a
driver
of
internal
marketing
in
nonprofit
organizations.
Consequences
for
nonprofit
performance
and
moderators.
BRQ
Bus.
Res.
Q.
2017,
http://dx.doi.org/10.1016/j.brq.2017.01.001
ARTICLE IN PRESS
+Model
BRQ-63;
No.
of
Pages
12
BRQ
Business
Research
Quarterly
(2017)
xxx,
xxx---xxx
www.elsevier.es/brq
BRQ
Business
Research
Quarterly
ARTICLE
Business-nonprofit
partnerships
as
a
driver
of
internal
marketing
in
nonprofit
organizations.
Consequences
for
nonprofit
performance
and
moderators
Luis
Ignacio
Álvarez-Gonzáleza,∗,
Nuria
García-Rodrígueza,
Marta
Rey-Garcíab,
María
José
Sanzo-Pereza
aUniversity
of
Oviedo,
Avenida
del
Cristo,
s/n.
Facultad
de
Economía
y
Empresa,
Oviedo
33071,
Spain
bUniversity
of
Coru˜
na,
Campus
de
Elvi˜
na
s/n.
Facultad
de
Economía
y
Empresa,
A
Coru˜
na
15071,
Spain
Received
10
January
2017;
accepted
11
January
2017
JEL
CLASSIFICATION
M31;
L31;
L33
KEYWORDS
Business-nonprofit
partnerships;
Internal
marketing;
Nonprofit
organizations;
Nonprofit
performance;
Commercial
revenues
in
nonprofits
Abstract
Nonprofit
organizations
(NPOs)
confront
competitive
pressures
derived
from
complex
economic
and
societal
challenges.
Their
capacity
to
fulfil
their
mission
increasingly
depends
on
developing
successful
alliances
with
key
external
and
internal
stakeholders,
including
coopera-
tive
interorganizational
relationships.
In
this
context,
the
aim
of
this
research
is
to
analyze:
(1)
to
which
extent
business-nonprofit
partnerships
(BNPPs)
foster
the
development
of
an
internal
marketing
approach
by
NPOs;
(2)
the
impact
of
this
approach
to
human
resource
management
on
nonprofit
performance;
and
(3)
the
possible
moderating
effect
of
the
funding
strategy
of
the
nonprofit.
This
empirical
research,
based
on
a
survey
to
a
representative
sample
of
Spanish
NPOs,
shows
that
cooperative
relationships
between
nonprofit
and
business
organizations
are
closely
associated
with
a
process
of
knowledge
transfer,
resulting
in
improved
nonprofit
per-
formance;
although
these
positive
effects
depend
on
the
capacity
of
NPOs
to
generate
income
from
commercial
sources.
©
2017
ACEDE.
Published
by
Elsevier
Espa˜
na,
S.L.U.
This
is
an
open
access
article
under
the
CC
BY-NC-ND
license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
∗Corresponding
author.
E-mail
addresses:
alvarezg@uniovi.es
(L.I.
Álvarez-González),
nuriagr@uniovi.es
(N.
García-Rodríguez),
martarey@udc.es
(M.
Rey-García),
mjsanzo@uniovi.es
(M.J.
Sanzo-Perez).
Introduction
The
development
of
cooperative
relationships
with
inter-
nal
and
external
stakeholders,
including
alliances
with
other
organizations,
is
critical
for
nonprofits
(NPOs)
to
ensure
mis-
sion
accomplishment
and
long-term
survival
(Wellens
and
http://dx.doi.org/10.1016/j.brq.2017.01.001
2340-9436/©
2017
ACEDE.
Published
by
Elsevier
Espa˜
na,
S.L.U.
This
is
an
open
access
article
under
the
CC
BY-NC-ND
license
(http://
creativecommons.org/licenses/by-nc-nd/4.0/).

Please
cite
this
article
in
press
as:
Álvarez-González,
L.I.,
et
al.,
Business-nonprofit
partnerships
as
a
driver
of
internal
marketing
in
nonprofit
organizations.
Consequences
for
nonprofit
performance
and
moderators.
BRQ
Bus.
Res.
Q.
2017,
http://dx.doi.org/10.1016/j.brq.2017.01.001
ARTICLE IN PRESS
+Model
BRQ-63;
No.
of
Pages
12
2
L.I.
Álvarez-González
et
al.
Jegers,
2014).
Whereas
cooperative
relationships
with
cor-
porate
and
institutional
donors
are
key
to
generate
private
charitable
contributions,
both
business
partners
and
the
per-
sonnel
of
nonprofit
organizations
become
strategic
allies
if
the
capacity
of
NPOs
to
generate
income
from
commercial
activities
needs
to
be
enhanced.
First,
cooperative
interorganizational
relationships,
and
especially
cross-sector
partnerships
---
i.e.
collaborative
alliances
among
businesses,
governments,
and
NPOs
that
address
social
causes,
have
become
a
significant
trend
dur-
ing
recent
years
(Selsky
and
Parker,
2005).
The
development
of
successful
business-nonprofit
partnerships
(BNPPs),
in
particular,
is
vital
from
both
the
nonprofit
and
the
business
perspective.
The
proliferation
of
NPOs,
combined
with
eco-
nomic
hardship,
is
forcing
nonprofits
not
only
to
compete
for
shrinking
traditional
sources
---
e.g.
government
grants,
but
also
to
develop
new
resources
from
the
market
to
ensure
long-term
survival
and
to
scale
their
operations
in
face
of
rising
societal
demands
(Never,
2011).
From
the
business
side,
interest
in
these
partnerships
has
increased
in
the
con-
text
of
the
evolution
of
corporate
social
responsibility
(CSR)
towards
the
so-called
‘‘CR
Innovation’’
paradigm
(Halme
and
Laurila,
2009).
Secondly,
most
NPOs
are
service
organizations
that
depend
on
their
personnel’s
professional
skills,
service
atti-
tude,
and
motivation
in
order
to
provide
a
satisfactory
service
to
their
beneficiaries.
As
NPOs
rely
upon
a
mix
of
paid
and
unpaid
personnel,
both
employees
and
volunteers
represent
key
stakeholders.
Their
relevance
has
translated
into
substantial
research
on
the
‘‘internal
marketing’’
approach
to
human
resources
management
(HRM),
showing
its
positive
effects
on
job
satisfaction,
commitment
to
the
organization
and
loyalty
of
the
NPO
personnel
(Bennett
and
Barkensjo,
2005;
Borzaga
and
Tortia,
2006;
Hume
and
Hume,
2015).
Adoption
of
this
marketing
approach
originating
from
the
for-profit
sector
has
resulted
in
enhanced
pro-
fessionalization
of
HRM
in
nonprofits
(Rodriguez
and
Sams,
2009).
Previous
studies
about
the
topic
of
BNPPs
are
mainly
con-
ceptual
in
nature
or
based
on
case
studies
(for
an
overview
see
Austin
and
Seitanidi,
2012a,b).
In
particular,
we
lack
robust,
quantitative
studies
that
integrate
the
topics
of
BNPPs
and
professionalization
of
NPOs
through
the
develop-
ment
of
an
internal
marketing
strategy.
Therefore,
the
first
objective
of
this
research
is
to
evaluate
the
extent
to
which
BNPPs
foster
a
process
of
knowledge
transfer
from
the
firm
to
the
nonprofit
organization,
encouraging
professionaliza-
tion
of
the
latter
through
the
development
of
an
internal
marketing
strategy,
and
ultimately
improving
nonprofit
per-
formance.
However,
these
potential
positive
associations
may
depend
on
different
factors,
most
notably
the
funding
strategy
of
the
nonprofit.
NPOs
can
resort
to
a
variety
of
potential
sources
of
revenue
(Andreasen,
2012;
Fischer
et
al.,
2011).
These
include
public
and
private
donations
and
subsidies;
fees
for
services
and
goods
(income
earned
from
commercial
activities);
and
returns
from
real
estate
or
financial
assets.
Revenue
diversification
is
generally
seen
as
a
necessary
strategy
to
effectively
support
nonprofit
mis-
sions
in
an
increasingly
challenging
resource
environment
(Carroll
and
Stater,
2009;
Fischer
et
al.,
2011).
In
sce-
narios
where
NPOs
undertake
commercial
activities,
the
improvement
of
their
internal
capabilities
will
be
par-
ticularly
important
to
enhance
performance,
and
parallel
to
this,
also
the
role
to
be
played
by
external
partners
in
resource
development.
As
anticipated
by
Dees
(1998),
‘‘nonprofits
exploring
commercialization
can
form
alliances
with
for-profit
companies
to
provide
complementary
skills
and
training
in
business
methods’’.
Consequently,
a
sec-
ond
goal
of
this
research
is
to
determine
how
the
funding
strategy
of
the
NPO
moderates
the
link
between
coopera-
tive
relationships
with
businesses,
internal
marketing
and
performance.
To
summarize,
by
combining
these
three
closely
related
topics
---
i.e.
BNPPs,
professionalization,
and
revenue
diver-
sification,
the
research
attempts
to
offer
a
threefold
contribution
to
the
literature
on
cooperative
interorgani-
zational
relationships,
with
potential
implications
for
both
nonprofit
and
business
partners.
First,
previous
studies
have
noted
that
‘‘nonprofits
have
embraced
collaboration
with
business
as
an
important
mode
for
the
generation
of
value
required
for
successfully
meeting
their
missions’’
(Austin
and
Seitanidi,
2012a,b,
734).
We
provide
insights
regarding
how
this
process
occurs,
by
means
of
a
positive
associa-
tion
between
partnering
with
a
firm
and
the
development
of
internal
HRM
capabilities.
Secondly,
the
impact
of
inter-
nal
marketing
programmes
on
NPO
performance
is
analyzed.
This
potential
effect
is
especially
interesting,
since
a
greater
degree
of
professionalization
is
increasingly
demanded
in
support
functions
in
NPOs
(Hurrell
et
al.,
2011).
And
thirdly,
we
test
whether
these
relationships
gain
relevance
in
a
con-
text
where
revenue
diversification
through
the
development
of
commercial
activities
is
becoming
an
essential
strategy
for
this
type
of
organization.
We
structure
this
work
as
follows.
First,
we
explain
the
theoretical
background
of
the
research.
Secondly,
we
detail
the
methodology
used
to
conduct
the
analysis,
based
on
a
survey
to
a
representative
sample
of
Spanish
NPOs.
Third,
we
interpret
the
empirical
results.
Fourth,
we
discuss
the
main
conclusions
and
implications
for
academics
and
prac-
titioners.
Conceptual
framework
Business-nonprofit
partnerships
as
an
antecedent
of
internal
marketing
in
NPOs
‘‘Cross-sector
partnering,
and
in
particular
collaboration
between
NPOs
and
business,
has
increased
significantly
and
is
viewed
by
academics
and
practitioners
as
an
inescapable
and
powerful
vehicle
for
implementing
corporate
social
responsibility
(CSR)
and
for
achieving
social
and
economic
missions’’
(Austin
and
Seitanidi,
2012a,
728).
Along
those
lines,
the
latest
developments
of
the
CSR
concept
---
‘‘CR
Innovation’’
(Halme
and
Laurila,
2009)
and
‘‘shared
value’’
(Porter
and
Kramer,
2011)
---
involve
the
creation
of
business
value
through
enhanced
competitiveness,
while
simulta-
neously
addressing
social
problems
in
the
communities
where
firms
operate.
This
dual
goal
is
achieved
through
the
development
of
new
business
models
and
cooperative
orga-
nizational
relationships
for
solving
social
and
environmental
problems,
including
business-nonprofit
partnerships
(BNPPs)
(Lefroy
and
Tsarenko,
2014).

Please
cite
this
article
in
press
as:
Álvarez-González,
L.I.,
et
al.,
Business-nonprofit
partnerships
as
a
driver
of
internal
marketing
in
nonprofit
organizations.
Consequences
for
nonprofit
performance
and
moderators.
BRQ
Bus.
Res.
Q.
2017,
http://dx.doi.org/10.1016/j.brq.2017.01.001
ARTICLE IN PRESS
+Model
BRQ-63;
No.
of
Pages
12
Business-nonprofit
partnerships
as
a
driver
of
internal
marketing
in
nonprofit
organizations
3
A
cooperative
relationship
between
a
company
and
a
nonprofit
can
experience
different
degrees
of
development,
depending
on
the
extent
to
which
relational
norms
guide
the
interactions
between
the
partners.
Accordingly,
different
types
of
business-nonprofit
alliances
can
be
distinguished
in
terms
of
commitment
and
value
creation
(Austin
and
Seitanidi,
2012a):
philanthropic
(a
charitable
transfer
of
monetary
or
in-kind
resources
from
a
corporate
donor
to
a
recipient
NPO),
transactional
(partners
exchange
more
valuable
resources
through
specific
activities,
e.g.
sponsor-
ships,
cause-related
marketing,
or
personnel
engagements),
integrative
(partners’
missions,
strategies,
values,
person-
nel,
and
activities
experience
organizational
integration,
resulting
in
co-creation
of
value),
and
transformational
part-
nerships
(partners
involve
in
joint
problem
solving,
decision
making,
management,
learning,
and
conjoined
benefits
cre-
ation).
Relationship
marketing
is
the
framework
that
has
stud-
ied
to
a
greater
extent
factors
explaining
the
development
of
successful
cooperative
interorganizational
relationships,
with
a
focus
on
transformational
partnerships.
This
approach
has
been
recently
extended
to
the
subfield
of
stakeholder
marketing
(Iyer
and
Bhattacharya,
2011),
which
consid-
ers
that
the
organization’s
behaviour
towards
multiple
stakeholders
can
be
better
understood
in
the
context
of
rela-
tionship
marketing
(Grinstein
and
Goldman,
2011).
Alliances
between
firms
and
NPOs
have
received
particular
attention
among
the
various
approaches
to
describing
and
classifying
stakeholders
in
the
relationship
marketing
literature
(Frow
and
Payne,
2011).
It
has
been
demonstrated
that
they
‘‘can
be
improved
by
adopting
a
deeper
Relationship
Marketing
approach’’
(Barroso
et
al.,
2014;
199).
The
demand
‘‘to
adopt
principle-based
stakeholder
marketing’’
has
been
fur-
ther
argued
for
the
public
sector
(Mish
and
Scammon,
2010,
12),
given
the
need
for
a
double
(Fairfax,
2004)
and
triple
bottom
line
(Slaper
and
Hall,
2011)
approach
in
the
con-
text
of
the
trend
to
outsource
social
services
from
public
institutions
to
NPOs.
Relationship
marketing
points
to
trust
and
commitment
as
the
key
dimensions
that
explain
the
success
of
cooper-
ative
interorganizational
relationships
(Morgan
and
Hunt,
1994).
The
crucial
role
of
trust
in
partnership
success
has
been
highlighted
by
BNPP
research,
noting
that
‘‘[t]rusting
relationships
are
often
depicted
as
the
essence
of
collab-
oration.
Paradoxically,
they
are
both
the
lubricant
and
the
glue----that
is,
they
facilitate
the
work
of
collaboration
and
they
hold
the
collaboration
together’’
(Bryson
et
al.,
2006:
47---48).
In
its
turn,
commitment
implies
that
one
partner
believes
the
relationship
is
‘‘so
important
as
to
warrant
max-
imum
efforts
at
maintaining
it’’
(Morgan
and
Hunt,
1994:
23).
Most
researchers
agree
that
affective
commitment
---
i.e.
a
type
of
commitment
based
on
an
affective
predis-
position
to
maintain
the
relationship
because
people
in
the
organization
develop
emotional
bonds
with
the
part-
ner,
often
as
a
result
of
identification
with
the
partner’s
values
---
is
the
most
influential
factor
towards
maintain-
ing
mutually
beneficial
relationships.
Research
on
BNPPs
has
further
emphasized
the
importance
of
affective
bonds
for
partnership’s
success
(Berger
et
al.,
2006).
Moreover,
relationship
marketing
literature
widely
acknowledges
that
trust
is
the
major
determinant
of
affective
commitment
(Palmatier
et
al.,
2006).
Therefore,
we
posit:
Hypothesis
1.
Nonprofit
trust
in
the
firm’s
behaviour
is
pos-
itively
associated
with
nonprofit
affective
commitment
to
the
partnership.
Close
cooperative
interorganizational
relationships
can
give
rise
to
a
bilateral
process
of
knowledge
transfer
and
capability
building
(Austin
and
Seitanidi,
2012a;
Bennett
et
al.,
2008).
This
possibility
is
especially
relevant
for
NPOs.
According
to
previous
nonprofit
literature,
in
order
for
NPOs
to
successfully
address
current
management
challenges,
a
greater
degree
of
professionalization
is
needed
in
functions
such
as
administration,
finance,
ICT,
public
relations/media,
marketing,
and
human
resources
(Hurrell
et
al.,
2011).
Specifically,
our
research
focuses
on
professionalization
resulting
from
the
implementation
of
an
‘‘internal
market-
ing’’
approach
to
Human
Resources
Management
(HRM)
in
NPOs.
HRM
represents
a
critical
function
in
nonprofit
orga-
nizations
because,
as
service
providers,
they
must
maintain
personal
contacts
with
their
core
external
stakeholders.
Per-
sonnel
play
a
decisive
role
in
this
process,
encouraging
NPOs
to
consider
their
employees
and
volunteers
as
real
‘‘internal
customers’’.
Nonprofits
should
develop
policies
attempted
to
obtain
information
about
the
expectations
and
needs
of
their
personnel,
in
order
to
improve
their
satisfaction,
skills
and
service
attitude.
‘‘Internal
marketing’’
has
precisely
emerged
as
an
effective
approach
for
HRM
in
NPOs
in
this
context
(Bennett
and
Barkensjo,
2005).
Generally,
an
inter-
nal
marketing
strategy
comprises
three
main
dimensions
(Gounaris,
2006):
internal
market
intelligence
generation
(e.g.,
collecting
information
about
specific
segments
of
per-
sonnel),
internal
intelligence
dissemination
(communication
between
supervisors
and
personnel),
and
responses
to
inter-
nal
intelligence
(e.g.,
designing
jobs
or
training
programmes
that
meet
personnel
needs).
As
already
mentioned,
one
of
the
distinctive
character-
istics
of
HRM
in
nonprofits
is
that,
different
from
for-profit
organizations,
they
often
involve
both
paid
staff
and
unpaid
volunteers.
Intense
competition
within
and
across
sectors
is
forcing
NPOs
to
boost
their
professionalization
by
increasing
the
number
of
paid
employees
and
improving
the
compe-
tences
and
skills
of
all
their
personnel,
paid
or
unpaid.
It
is
important
to
note
that
professionalization
does
not
mean
that
volunteers
become
less
important,
but
rather
that
they
tend
to
be
managed
in
a
more
formalized
way.
In
fact,
competitive
pressures
are
forcing
employees
and
vol-
unteers
to
coexist
in
many
NPOs,
generating
tensions
and
conflicts
between
both
groups
(Kreutzer
and
Jäger,
2011).
Elements
such
as
communication,
training,
clear
objectives
and
trust,
are
key
in
order
to
address
these
possible
ten-
sions
(Kreutzer
and
Jäger,
2011).
As
a
consequence,
the
development
of
an
internal
marketing
approach
becomes
even
more
necessary
(Hume
and
Hume,
2015).
Furthermore,
this
HRM
approach
plays
a
crucial
role
in
volunteer
motiva-
tion.
The
associational
advantages
from
feeling
connected
to
others,
the
perceived
importance
of
volunteer
work,
the
perceived
support
provided
by
the
nonprofit
organization,
and
the
satisfaction
and
identification
with
its
values
are
critical
sources
of
motivation
and
commitment
for
volun-
teers
(Borzaga
and
Tortia,
2006;
Boezeman
and
Ellemers,
2008).
Given
that
internal
marketing
is
a
central
capability
for
NPOs,
identifying
its
potential
drivers
represents
a
relevant

Please
cite
this
article
in
press
as:
Álvarez-González,
L.I.,
et
al.,
Business-nonprofit
partnerships
as
a
driver
of
internal
marketing
in
nonprofit
organizations.
Consequences
for
nonprofit
performance
and
moderators.
BRQ
Bus.
Res.
Q.
2017,
http://dx.doi.org/10.1016/j.brq.2017.01.001
ARTICLE IN PRESS
+Model
BRQ-63;
No.
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Pages
12
4
L.I.
Álvarez-González
et
al.
issue.
Successful
cooperative
interorganizational
relation-
ships
might
constitute
one
of
these
facilitators.
According
to
Seitanidi
and
Crane
(2009),
partnership
institutionali-
zation
produces
affective
engagement
between
partners,
as
members
develop
close
personal
bonds.
Austin
(2000)
also
points
to
personal
connections
and
relationships
as
drivers
of
knowledge
transfer,
as
‘‘the
extent
to
which
col-
laborators’
respective
resources
and
core
competencies
can
be
accessed
and
deployed
for
strategic
value
depends
on
the
quality
and
closeness
of
the
partners’
relationship’’
(Austin,
2000:
85).
In
the
specific
context
of
BNPPs,
Bennett
et
al.
(2008)
identify
the
factors
that
encourage
and/or
impede
effective
knowledge
transfer
between
organiza-
tions;
among
them
credibility
of
the
source
(the
extent
to
which
it
is
perceived
as
expert,
reputable
and
trust-
worthy).
Therefore,
if
a
nonprofit
organization
trusts
and
emotionally
engages
with
a
firm,
it
will
be
more
predis-
posed
to
adopt
business
tools
from
the
for-profit
world
such
as
internal
marketing
strategies.
Thus,
we
expect
that,
Hypothesis
2.
Nonprofit
commitment
to
the
partnership
is
positively
associated
with
its
development
of
an
internal
marketing
approach.
The
effect
of
internal
marketing
on
nonprofit
performance
The
resource-based
view
(RBV)
of
the
firm
posits
that
the
development
of
superior
internal
capabilities
helps
organi-
zations
improve
their
performance
(Barney,
1991).
Under
this
theoretical
framework,
and
given
that
internal
mar-
keting
is
a
critical
competence
for
NPOs,
we
expect
that
the
enhancement
of
HRM
capabilities
positively
affects
non-
profit
performance.
Measuring
nonprofit
performance
is
a
complex
task
(Moxham,
2014).
The
ultimate
performance
indicator
in
a
nonprofit
organization
is
the
extent
to
which
its
mission
is
accomplished
(McDonald,
2007).
However,
this
final
goal
depends
on
multiple
factors,
including
intermediate
per-
formance
measures.
Scholars
have
proposed
internal
and
external
criteria
(Sowa
et
al.,
2004),
efficiency
and
effec-
tiveness
measures
(LeRoux
and
Wright,
2010),
and
objective
and
perceptual
indicators
(Sowa
et
al.,
2004).
We
have
taken
into
consideration
the
aforementioned
challenges
faced
by
NPOs
in
terms
of
competitive
pressures,
scarcer
resources,
and
the
need
to
increase
the
scale
of
their
operations.
Accordingly,
we
have
included
in
our
model
two
related
out-
put
indicators,
the
volume
of
funding
(funding)
and
the
scale
of
operations
(number
of
activities
developed
and/or
num-
ber
of
beneficiaries
reached
by
its
programmes).
We
also
measure
the
extent
to
which
the
nonprofit
estimates
it
has
accomplished
its
mission
and
satisfied
the
expectations
of
beneficiaries
and
donors,
as
a
proxy
of
its
ultimate
perfor-
mance
indicator,
i.e.
mission
accomplishment
(Sanzo
et
al.,
2015a).
Internal
marketing
increases
personnel
satisfaction,
reduces
turnover,
and
improves
service
orientation
and
alignment
with
organizational
objectives
(Bennett
and
Barkensjo,
2005).
Therefore,
under
this
approach,
employ-
ees
and
volunteers
will
be
more
willing
and
prepared
to
undertake
a
greater
number
of
fundraising
activities,
and
to
expand
the
number
of
activities
and
programmes
of
the
nonprofit
and/or
provide
its
services
to
more
beneficiaries.
Moreover,
an
internal
marketing
is
a
socially
responsible
approach
to
HRM.
The
organization
meets
its
responsibil-
ity
for
its
impacts
on
its
personnel
through
a
strategy
that
is
implemented
in
close
collaboration
with
affected
stake-
holders.
Thus,
we
expect
internal
marketing
to
directly
and
positively
affect
the
degree
to
which
the
NPO
accomplishes
its
socially
valued
goals
(mission
accomplishment).
Conse-
quently,
Hypothesis
3.
Development
of
an
internal
marketing
approach
by
a
nonprofit
is
positively
associated
with
its
(a)
volume
of
funding,
(b)
scale
of
operations
(number
of
activities
developed
and/or
beneficiaries
reached),
and
(c)
mission
accomplishment.
Previous
nonprofit
management
research
(Chen
and
Hsu,
2013;
Modi
and
Mishra,
2010;
Shoham
et
al.,
2006;
Vázquez
et
al.,
2002)
shows
that
greater
financial
resources
help
the
NPO
enlarge
the
scale
of
its
operations,
and
this
factor,
in
its
turn,
contributes
to
the
improvement
of
the
perceptions
about
mission
accomplishment.
So,
we
propose
two
addi-
tional
hypotheses
that
show
the
connections
between
the
proposed
performance
indicators:
Hypothesis
4a.
Nonprofit
funding
is
positively
associated
with
the
scale
of
its
operations.
Hypothesis
4b.
The
scale
of
nonprofit
operations
is
positively
associated
with
perceptions
that
organizational
mission
is
accomplished.
NPO
development
of
revenues
from
commercial
sources
as
a
moderator
The
potential
transfer
of
know-how
from
the
firm
to
the
NPO
might
depend
on
other
factors
than
can
boost
or
alternatively
hinder
the
process
(Rathi
et
al.,
2014).
For
instance,
Sanzo
et
al.
(2015b)
show
how
that
this
knowl-
edge
transfer
depends
on
the
type
of
contribution
that
the
firm
brings
to
the
partnership:
it
is
stronger
when
the
part-
nership
is
based
on
not-only-monetary
(cash)
contributions;
e.g.,
in-kind
gifts,
infrastructures/equipment
or
corporate
employee
volunteer
programmes.
Along
those
lines,
there
has
long
been
a
consensus
that
the
type
of
funding
strat-
egy
of
the
NPO
can
play
a
relevant
role
in
its
willingness
to
adopt
management
and
marketing
tools
from
the
for-profit
world.
Traditionally,
‘‘the
difference
between
predominant
public
sector
funding
and
majority
private
sector
funding
emerges
as
the
most
important
distinction
to
understand
how
organizations
differ’’
(Anheier
et
al.,
1997:
212).
How-
ever,
the
key
distinction
is
nowadays
between
NPOs
that
depend
basically
on
private
donations
and
public
grants
(contributed
income),
and
those
that
obtain
their
income
(or
at
least
most
of
it)
from
commercial
sources
such
as
the
sale
of
goods
or
charging
fees
for
services
(earned
income).
At
the
time
when
NPOs
developed
their
activities
in
a
context
of
prosperity,
it
seemed
more
important
to
focus

Please
cite
this
article
in
press
as:
Álvarez-González,
L.I.,
et
al.,
Business-nonprofit
partnerships
as
a
driver
of
internal
marketing
in
nonprofit
organizations.
Consequences
for
nonprofit
performance
and
moderators.
BRQ
Bus.
Res.
Q.
2017,
http://dx.doi.org/10.1016/j.brq.2017.01.001
ARTICLE IN PRESS
+Model
BRQ-63;
No.
of
Pages
12
Business-nonprofit
partnerships
as
a
driver
of
internal
marketing
in
nonprofit
organizations
5
on
securing
and
managing
contributions
from
public
and
private
donors;
rather
than
implementing
a
proactive
and
systematic
strategy
to
generate
earned
income
(Macedo
and
Pinho,
2006).
However,
the
recent
economic
crisis
has
produced
a
drastic
reduction
of
traditional
governmental
support,
coupled
with
a
simultaneous
increase
in
demand
for
the
services
provided
by
NPOs
(Never,
2011).
Further-
more,
it
is
likely
that
the
aftermath
of
the
crisis
(for
example
in
the
South
of
Europe)
will
significantly
impact
corporate
donations.
Consequently,
the
development
of
commercial
activities
as
a
core
or
supplementary
source
of
funding
is
becoming
critical
to
ensure
NPO
survival
and
mission
accom-
plishment
(Gras
and
Mendoza-Abarca,
2014).
According
to
Dees
(1998),
‘‘faced
with
rising
costs,
more
competition
for
fewer
donations
and
grants,
and
increased
rivalry
from
for-
profit
companies
entering
the
social
sector,
nonprofits
are
turning
to
the
for-profit
world
to
leverage
or
replace
their
traditional
sources
of
funding.
.
.
(they)
look
to
commercial
funding
in
the
belief
that
market-based
revenues
can
be
eas-
ier
to
grow
and
more
resilient
than
philanthropic
funding’’
(5---6).
Therefore,
implementing
this
type
of
funding
strategy
reflects
a
proactive
non-profit
marketing
orientation
strat-
egy,
as
Wymer
et
al.
(2015)
proposed.
We
expect
this
circumstance
to
reinforce
the
predisposition
of
NPOs
to
adopt
business
tools
and
strategies,
including
an
internal
marketing
approach,
also
seen
as
one
of
the
key
dimen-
sions
of
a
real
market
orientation
(Akingbola,
2013;
Borzaga
and
Tortia,
2006;
Rodriguez
and
Sams,
2009).
Furthermore,
service
research
stresses
the
fact
that
personnel
motivation,
commitment,
and
coordination
are
essential
for
the
success
of
any
commercial
activity.
Thus,
it
is
probable
that
the
intensity
of
the
effect
of
internal
marketing
on
the
nonprofit
performance
indicators
will
be
greater
when
the
organiza-
tion
is
involved
in
generating
earned
income.
Consequently,
we
posit
that:
Hypothesis
5.
The
positive
associations
between
(a)
affec-
tive
commitment
to
the
partnership
and
internal
marketing,
and
(2)
internal
marketing
and
nonprofit
performance,
will
be
stronger
if
the
NPO
obtains
funds
from
commercial
activ-
ities
(fees
for
goods
and/or
services).
The
conceptual
model
is
depicted
in
Fig.
1.
NPO perception about
the business-NPO
partnership
NPO human resource
management
NPO
results
+
Trust
Affective
commitment
Funding
+
Scale of
operation
Miss
ion
accompli
shment
+
+
+
+
+
Commercial
activities
+
+
+
+
Internal
marketing
Figure
1
Conceptual
model.
Methodology
Data
collection
and
sample
description
To
test
the
conceptual
model
we
focus
on
foundations
as
a
distinct
(Hopt
et
al.,
2006)
and
fast-growing
type
of
NPO
in
Europe
(European
Foundation
Centre,
2013).
Foun-
dations
are
non-member
nonprofits,
and
this
key
feature
clearly
differentiates
them
from
member
organizations
such
as
associations,
cooperatives
and
other
organizations
of
the
social
economy
or
the
third
sector
(Hopt
et
al.,
2006).
It
is
estimated
that
there
are
about
110,000
foundations
in
Europe,
spending
a
total
of
between
83
and
150
billion
euros
annually
on
their
projects
and
programmes,
and
pro-
viding
employment
to
up
to
one
million
Europeans
(European
Foundation
Centre,
2013).
We
surveyed
a
sample
of
525
NPOs,
randomly
selected
from
the
global
census
of
9050
Spanish
foundations
iden-
tified
by
the
Spanish
Institute
for
Strategic
Analysis
of
Foundations
(INAEF).
In
Spain,
where
a
‘‘foundation’’
is
one
of
the
two
legal
formulas
available
for
organizations
to
incorporate
as
non-profit
from
a
tax
perspective
together
with
associations,
non-member
nonprofits
are
estimated
to
account
for
approximately
half
of
the
nonprofit
sec-
tor
(Rey-García
and
Álvarez-González,
2011).
The
fact
that
this
country
has
a
highly
institutionalized
foundation
sector,
and
also
one
of
the
largest
numbers
of
registered
public-
benefit
foundations
in
the
European
Union,
further
explains
why
analyzing
these
NPOs
represents
an
interesting
case
study.
An
e-mailed
questionnaire
was
completed
by
the
person
in
charge
of
daily
decision-making
in
the
organization.
We
asked
each
respondent
to
indicate
whether
its
NPO
had
col-
laborated
at
any
time
during
the
past
three
years
with
a
business
in
order
to
achieve
its
social
benefit
mission.
If
they
answered
in
the
affirmative,
we
asked
them
to
indicate
their
level
of
agreement
with
a
series
of
statements
about
the
characteristics
of
the
relationship,
their
internal
marketing
policies
and
the
performance
of
the
NPO.
We
obtained
325
valid
questionnaires
(sample
error
=
±5.34%;
95%
confidence
level).
Of
the
325
NPOs,
185
indicated
that
they
maintained
or
had
maintained
a
partnership
with
a
firm
(Table
1).
Because
we
used
data
gathered
from
a
survey,
we
employed
several
techniques
to
assess
the
possible
exist-
ence
of
unit
nonresponse
bias
(Armstrong
and
Overton,
1977;
Groves,
2006).
First,
we
compared
the
profile
(e.g.
age,
geographic
scope,
type
of
nonprofit,
founders,
model
and
areas
of
activity,
beneficiaries,
and
size)
of
our
sample
of
325
NPOs
with
the
descriptors
of
the
sector
as
a
whole
as
provided
by
the
INAEF,
as
this
is
considered
the
most
reli-
able
external
source
to
characterize
the
Spanish
foundation
sector
(Table
1).
There
are
no
statistically
significant
differ-
ences
between
both
the
descriptors
of
the
sample
and
those
of
the
population.
Second,
we
compared
early
versus
late
respondents.
The
estimation
of
a
two
sample
(independent)
t-test
reveals
that
there
are
no
statistically
significant
dif-
ferences
between
both
groups
in
any
of
the
key
constructs
of
the
model.
Third,
we
compared
the
mean
values
of
the
main
constructs
of
the
model
obtained
from
the
sample
of
325
NPOs,
with
the
values
derived
from
a
new
sample
of
50
additional
organizations
not
included
in
the
final
sample.

Please
cite
this
article
in
press
as:
Álvarez-González,
L.I.,
et
al.,
Business-nonprofit
partnerships
as
a
driver
of
internal
marketing
in
nonprofit
organizations.
Consequences
for
nonprofit
performance
and
moderators.
BRQ
Bus.
Res.
Q.
2017,
http://dx.doi.org/10.1016/j.brq.2017.01.001
ARTICLE IN PRESS
+Model
BRQ-63;
No.
of
Pages
12
6
L.I.
Álvarez-González
et
al.
Table
1
Sample
description.
Descriptors
Spanish
foundation
sector
(N
=
9050)
Sample
(N
=
325)
Partnerships
(N
=
185)
Year
of
legal
constitutiona
Until
1994
34.7%
31.6%
27.0%
1995---2002 31.5 34.8 37.8
After
2002 33.8 33.5 35.1
Administrative
registry National
registry 29.2 32.9 36.8
Regional
registry
70.8
67.1
63.2
Public
initiative
Yes
9.2
12.6
15.1
Founders
Natural
persons
52.6
45.9
45.4
Public
legal
persons
31.3
31.3
31.6
Private
legal
persons
55.3
55.3
58.2
Geographic
scope
of
activities
Local-provincial
28.3
24.9
17.9
Regional 34.7 35.4 37.8
National
23.3 24.9 25.9
International
13.6
14.8
18.4
Area
of
activity
after
ICNPO
(International
Classification
of
Nonprofit
Organizations)
Culture
and
recreation
46.5
42.9
44.9
Education
and
research
52.0
54.9
56.8
Health
21.0
24.7
23.2
Social
services
35.3
36.1
33.5
Environment
13.5
12.7
13.5
Development
and
housing
27.7
31.8
35.1
Law,
advocacy
and
polities
6.2
8.0
9.2
International
12.7
18.2
21.1
Religion
3.7
2.8
1.1
Business
and
professional
associations,.
.
.
1.6
3.4
5.4
Model
of
activity
Grant
making
31.9
33.1
28.8
Operating
their
own
programmes
or
projects
74.6
78.6
84.8
Social
mobilization
or
advocacy
18.6
18.0
20.7
Operating
their
own
establishments
15.3
18.6
17.4
Type
of
beneficiaries Legal
persons
54.2
57.4
62.7
Natural
persons
96.0
96.6
96.8
Size Small/medium-sized
(revenue
<2,400,000D
)
88.4
83.1
79.0
Large/mega
(revenue
>2,400,000D
)
11.6
16.9
21.0
aThese
thresholds
correspond
to
two
Spanish
laws:
the
first
Spanish
Foundation
Law
of
1994
and
the
current
Spanish
Foundation
Law
of
2002.
Again,
the
estimation
of
a
t-test
shows
that
there
are
no
statistically
significant
differences
between
both
groups.
Measuring
the
model
variables
We
used
multi-item
scales
to
measure
the
model
constructs
(Appendix).
The
measures
employed
reflective
indicators,
and
all
items
used
seven-point
Likert-type
scales,
where
1
indicated
‘‘completely
disagree’’
and
7
was
‘‘completely
agree.’’
The
trust
and
commitment
scales
are
grounded
in
relationship
marketing
literature
and
research
on
BNPPs
(e.g.,
Morgan
and
Hunt,
1994;
Wetzels
et
al.,
1998;
Wymer
and
Samu,
2003).
The
items
utilized
to
measure
an
internal
marketing
approach
come
from
Gounaris
(2006).
With
regard
to
the
NPO
performance
scales,
we
employed
perceptual
measures
and
asked
respondents
to
evaluate
the
extent
to
which
they
believed
the
objectives
established
for
a
set
of
performance
indicators
(Vázquez
et
al.,
2002;
Modi
and
Mishra,
2010)
had
been
achieved
during
the
past
year.
In
this
case,
a
value
of
1
meant
that
performance
on
a
particular
indicator
was
significantly
below
the
established
objective,
whereas
7
indicated
that
it
had
significantly
exceeded
it.
We
collected
information
about
the
organization’s
sources
of
revenue
from
foundation
registries.
In
order
to
evaluate
the
possible
magnitude
of
the
com-
mon
method
variance,
we
performed
Harman’s
single-factor
test.
This
test
shows
that:
(1)
an
underlying
structure
of
five
factors
emerges
from
the
factorial
analysis,
and
(2)
the
main
factor
comprises
29.83%
of
total
variance,
so
this
type
of
bias
is
not
a
problem
in
this
research.
The
fact
that
the
moderating
variable
used
in
this
study
was
collected
from
secondary
sources
also
contributes
to
reduce
this
potential
bias.

Please
cite
this
article
in
press
as:
Álvarez-González,
L.I.,
et
al.,
Business-nonprofit
partnerships
as
a
driver
of
internal
marketing
in
nonprofit
organizations.
Consequences
for
nonprofit
performance
and
moderators.
BRQ
Bus.
Res.
Q.
2017,
http://dx.doi.org/10.1016/j.brq.2017.01.001
ARTICLE IN PRESS
+Model
BRQ-63;
No.
of
Pages
12
Business-nonprofit
partnerships
as
a
driver
of
internal
marketing
in
nonprofit
organizations
7
Table
2
Reliability
and
validity
of
the
model’s
scales.
Factor
Item
Factor
loadings
(t-value)
Composite
reliability
coefficient
AVE
Trust
(TR) TR1
0.570
(7.135)
0.845
0.583
TR2
0.778
(9.274)
TR3
0.894
(12.356)
TR4
0.777
(10.055)
Affective
commitment
(AFC)
AFC1
0.647
(8.988)
0.828
0.619
AFC2
0.864
(10.407)
AFC3
0.832
(11.615)
Internal
marketing
(IM)
IIG
0.845
(12.016)
0.848
0.651
IID
0.795
(8.671)
RESP
0.779
(8.361)
Funding
(FUND) FUND1
0.910
(19.821)
0.909
0.769
FUND2
0.815
(13.194)
FUND3
0.902
(18.667)
Scale
of
operations
(SCALE) SCALE1
0.899
(14.182)
0.880
0.785
SCALE2
0.873
(12.675)
Mission
accomplishment
(MA) MA1
0.769
(9.016)
0.843
0.645
MA2
0.913
(11.075)
MA3
0.714
(7.975)
Goodness-of-fit-measures:
S-B
2(120)
=
152.9356
(p
=
0.02276);
BBNNFI
=
0.970;
CFI
=
0.976;
RMSEA
=
0.040.
Table
3
Discriminant
validity
of
the
scales.
TR
AFC
IM
FUND
SCALE
MA
TR
0.763
AFC
0.481
0.786
IM
0.409
0.290
0.807
FUND
0.125
0.019
0.243
0.803
SACLE
0.105
0.147
0.388
0.678
0.877
MA
0.318
0.292
0.368
0.376
0.513
0.886
Note:
The
values
on
the
diagonal
are
the
square
roots
of
the
AVE
coefficients
of
each
of
the
seven
constructs
considered.
The
values
off
the
diagonal
are
the
correlations
between
each
pair
of
constructs.
Results
Scale
reliability
and
validity
A
confirmatory
factor
analysis
(Tables
2
and
3),
using
EQS
6.2
for
Windows,
supports
the
reliability
and
validity
of
the
model
scales
(Gerbing
and
Anderson,
1988;
Steenkamp
and
Trip,
1991).
We
evaluated
reliability
using
the
composite
reliability
coefficient,
which
exceeded
the
recommended
value
of
.7.
To
assess
convergent
validity,
we
confirmed
that
the
standardized
parameters
were
significant
and
greater
than
.5.
Furthermore,
we
calculated
the
average
variance
extracted
(AVE),
always
greater
than
.5.
In
order
to
eval-
uate
discriminant
validity,
we
compared
the
AVE
of
each
construct
and
the
shared
variance
between
each
pair
of
con-
structs;
the
former
always
surpassed
the
latter.
The
internal
marketing
scale
was
multidimensional.
Because
the
dimen-
sions
of
this
construct
exhibit
convergent
validity,
we
added
the
individual
scores
to
obtain
a
global
(mean)
evaluation
of
each
dimension.
We
then
used
the
three-item
internal
marketing
factor
to
estimate
the
full
structural
equation
model.
Model
estimation
In
Table
4
we
provide
the
results
of
the
causal
model
estima-
tion
using
SEM
with
EQS
6.2
for
Windows.
The
goodness-of-fit
measures
are
appropriate.
Trust
is
highly
and
positively
asso-
ciated
with
affective
commitment
(p
<
.01),
supporting
H1.
We
also
find
support
for
H2
(p
<
.01):
nonprofit
affective
engagement
with
the
firm
is
positively
linked
to
internal
marketing,
which
in
turn
is
positively
associated
with
the
achievement
of
the
three
performance
measures,
in
support
of
H3a
(p
<
.01),
H3b
(p
<
.01),
and
H3c
(p
<
.05).
Finally,
our
results
support
the
positive
connections
between
funding
and
scale
of
operations
(H4a)
and
scale
of
operations
and
mission
accomplishment
(H4b).
Multi-sample
analysis
using
EQS
6.2
for
Windows
enabled
us
to
investigate
the
possible
moderating
effect
of
commercial
activities
as
a
source
of
nonprofit
funding
(Tables
5
and
6).
First,
we
divided
the
sample
into
two
groups.
The
first
group
is
comprised
of
99
NPOs
that
obtain
funding
from
the
sale
of
goods
or
fees
for
services.
The
sec-
ond
group
refers
to
70
NPOs
that
do
not
develop
commercial
activities;
instead
they
obtain
their
revenues
from
private

Please
cite
this
article
in
press
as:
Álvarez-González,
L.I.,
et
al.,
Business-nonprofit
partnerships
as
a
driver
of
internal
marketing
in
nonprofit
organizations.
Consequences
for
nonprofit
performance
and
moderators.
BRQ
Bus.
Res.
Q.
2017,
http://dx.doi.org/10.1016/j.brq.2017.01.001
ARTICLE IN PRESS
+Model
BRQ-63;
No.
of
Pages
12
8
L.I.
Álvarez-González
et
al.
Table
4
Model
estimation
results.
Causal
relationships
Hypotheses
Standardized
coefficients
H1:
Trust
→
Affective
commitment
Positive
0.499***
H2:
Affective
commitment
→
Internal
marketing
Positive 0.333***
H3a:
Internal
marketing
→
Funding
Positive
0.241***
H3b:
Internal
marketing
→
Scale
of
operations
Positive
0.239***
H3c:
Internal
marketing
→
Mission
accomplishment
Positive
0.210**
H4a:
Funding
→
Scale
of
operations
Positive
0.623***
H4b:
Scale
of
operations
→
Mission
accomplishment
Positive
0.434***
Goodness-of-fit-measures
S-B
2(128)
=
175.4046
(p
=
0.00346);
BBNNFI
=
0.959;
CFI
=
0.966;
RMSEA
=
0.047
** p
<
0.05.
*** p
<
0.01.
donations
(from
firms,
individuals
or
other
NPOs),
public
grants,
or
returns
from
real
estate
and/or
from
financial
assets.
According
to
Table
6,
the
strength
of
the
links
between
(1)
affective
commitment
and
internal
marketing
(p
<
.05),
(2)
internal
marketing
and
funding
(p
<
.05),
and
(3)
internal
marketing
and
scale
of
operations
(p
<
.10),
depends
on
the
type
of
funding
strategy
of
the
NPO,
supporting
H5.
These
three
positive
effects
are
not
significant
when
the
NPO
does
not
develop
commercial
activities
(Table
5).
Discussion
This
work
has
adopted
an
internal
marketing
perspective
to
HRM
in
nonprofit
organizations.
In
order
to
address
three
of
the
most
critical
challenges
and
theoretical
debates
in
current
nonprofit
management
research:
cooperative
rela-
tionships
with
businesses,
nonprofit
professionalization,
and
diversification
of
revenue
sources.
The
lack
of
previous
empirical
works
linking
cross-sector
partnerships,
internal
capability
building,
and
performance
in
NPOs
reinforces
the
interest
of
its
results.
Thus,
this
research
provides
some
useful
contributions
for
both
academics
and
practitioners
interested
in
understanding
the
impact
of
cross-sector
part-
nerships
upon
internal
resources
and
capabilities
at
work
in
a
nonprofit
organizational
setting;
and
on
the
performance
of
the
NPO
itself.
The
first
contribution
refers
to
the
positive
connection
between
partnership
success
and
the
development
of
key
internal
capabilities
by
the
NPO.
Stronger
degrees
of
rela-
tional
development
foster
learning
and
knowledge
transfer;
it
is
not
simply
a
matter
of
resources
contributed.
This
transfer
depends
on
the
degree
of
affective
engagement.
Although
monetary
support
is
usually
the
predominant
type
of
corporate
contribution,
firms
and
NPOs
should
realize
that
if
their
strategic
goal
of
the
partnership
consists
of
generat-
ing
added
value
for
society,
the
alliance
should
transcend
the
mere
donation
of
money
to
imply
and
develop
more
specific
resources
and
affective
links.
Secondly,
our
findings
suggest
that
internal
marketing
policies
constitute
an
outstanding
capability
for
NPOs,
as
they
improve
NPO
performance.
The
analysis
of
the
conse-
quences
of
partnerships
from
the
perspective
of
the
NPO
is
a
significant
academic
contribution,
because
previous
empirical
research
has
mostly
focused
on
the
effects
upon
business
performance.
Furthermore,
there
is
still
substantial
Table
5
Multisample
analysis
(Step
1).
Causal
relationships
GROUP
1
(foundations
that
develop
commercial
activities)
GROUP
2
(foundations
that
do
not
develop
commercial
activities)
Standardized
parameter
(t-value)
Result
Standardized
parameter
(t-value)
Result
H1:
Trust
---
Affective
commitment
0.631
(4.415) *** 0.404
(3.773) ***
H2:
Affective
commitment
---
Internal
marketing
0.533
(4.810) *** 0.150
(1.436)
n.s.
H3a:
Internal
marketing
---
Funding
0.426
(3.615) *** 0.071
(0.627)
n.s.
H3b:
Internal
marketing
---
Scale
0.408
(3.869) *** 0.142
(1.304)
n.s.
H3c:
Internal
marketing
---
Mission
0.176
(1.162)
n.s
0.224
(1.506) *
H4a:
Funding
---
Scale
0.440
(3.882) *** 0.729
(6.295) ***
H4b:
Scale
---
Mission
0.458
(2.467) *** 0.396
(2.744) **
Goodness-of-fit
measures
S-B
2(256)
=
333.8787;
p
=
0.00075;
BBNFI
=
0.937;
CFI
=
0.947;
RMSEA
=
0.043
*p
<
0.10.
** p
<
0.05.
*** p
<
0.01.
n.s.
=
non
significant.

Please
cite
this
article
in
press
as:
Álvarez-González,
L.I.,
et
al.,
Business-nonprofit
partnerships
as
a
driver
of
internal
marketing
in
nonprofit
organizations.
Consequences
for
nonprofit
performance
and
moderators.
BRQ
Bus.
Res.
Q.
2017,
http://dx.doi.org/10.1016/j.brq.2017.01.001
ARTICLE IN PRESS
+Model
BRQ-63;
No.
of
Pages
12
Business-nonprofit
partnerships
as
a
driver
of
internal
marketing
in
nonprofit
organizations
9
Table
6
Multisample
analysis
(Step
2).
Constraints
2Probability
Constraints
2Probability
H1:
Trust
---
Affective
commitment 0.756 0.384
H3c:
Internal
marketing
--- Mission
0.085
0.770
H2:
Affective
commitment
---
Internal
marketing
5.314
0.021
H4a:
Funding
---
Scale
0.513
0.474
H3a:
Internal
marketing
---
Funding
5.019
0.025
H4b:
Scale
---
Mission
0.339
0.561
H3b:
Internal
marketing
---
Scale
3.386
0.066
---
---
---
controversy
in
the
nonprofit
sector
about
the
desirability
of
maintaining
relationships
with
firms,
adopting
professional
management
styles
and/or
relying
on
certain
commercial
sources
of
funding
(Kreutzer
and
Jäger,
2011;
Reed
and
Reed,
2009).
Our
findings
confirm
some
of
the
advantages
of
NPO
professionalization
for
mission
advancement
and
for
the
improvement
of
certain
intermediate
performance
meas-
ures.
They
also
clearly
identify
partnerships
with
businesses
as
a
means
to
encourage
this
professionalization
process.
Third,
the
access
to
non-traditional
sources
of
funding
(specifically
earned
income
from
commercial
activities)
pos-
itively
moderates
the
influence
of
NPO
commitment
to
the
partnership
on
internal
marketing
and
organizational
perfor-
mance.
The
intensity
of
the
impact
is
greater
in
those
NPOs
that
charge
fees
for
services
or
sell
goods.
The
development
of
such
market-oriented
activities
is
becoming
a
key
com-
plementary
source
of
revenue
for
NPOs
in
an
increasingly
demanding
and
competitive
environment.
Consequently,
the
roles
played
by
partnerships
with
firms
and
by
an
internal
marketing
approach
to
HRM
are
accordingly
gaining
in
rele-
vance
in
NPOs,
particularly
when
it
comes
to
addressing
complex
societal
problems
under
tighter
resource
con-
straints.
Managerial
implications
Under
the
light
of
the
above-mentioned
contributions,
the
main
practical
implications
concerning
the
management
of
cross-sector
partnerships
and
the
relevance
of
adopting
tools
from
the
business
world
are
provided,
with
a
particular
focus
on
the
perspective
of
nonprofit
practitioners.
First,
NPO
managers
should
be
receptive
to
the
develop-
ment
of
BNPPs
with
the
appropriate
companies.
Specifically,
NPO
and
business
managers
should
pay
particular
attention
to
the
climate
of
trust
and
commitment
in
their
coopera-
tive
interorganizational
relationships.
In
order
to
encourage
them,
they
should
establish
an
interorganizational
team
in
which
members
work
together
to
implement
the
partner-
ship,
encourage
their
physical
proximity,
ensure
the
team
members’
stability,
use
formal
programmes
(e.g.,
training
and
seminar
sessions)
to
develop
understanding,
and
encour-
age
temporary
personnel
mobility
to
enhance
integration
of
different
perspectives.
The
implementation
of
all
these
activities
will
probably
foster
communication
flows,
reduce
conflict
and
risk,
and
improve
the
perceived
benefits
of
the
collaboration.
Secondly,
the
development
of
an
internal
marketing
strategy
to
manage
human
resources
in
NPOs
involves
a
systematic
effort
to
obtain
information
about
the
individual
needs
of
employees
and
volunteers,
and
to
assess
their
degree
of
satisfaction.
Furthermore,
both
formal
and
informal
ways
of
vertical
and
horizontal
communication
between
employees,
volunteers,
and
their
supervisors
should
be
fostered.
All
this
information
should
be
used
to
design
training
programmes,
positions,
and
careers
that
are
adjusted
to
the
professional
capabilities
of
the
per-
sonnel,
take
into
account
their
professional
development,
and
actively
seek
to
develop
better
working
conditions.
These
activities
can
improve
personnel’s
satisfaction
and
identification
with
the
values
and
principles
endorsed
by
the
NPO
and
embodied
in
its
socially
valued
mission.
Third
and
last,
the
economic
crisis
of
the
beginning
of
the
90s
of
the
XX
century
encouraged
access
to
new
private
donors,
as
NPOs
struggled
to
face
the
significant
reduc-
tion
in
public
funding.
Furthermore,
recent
hardship
reveals
the
need
for
moving
forward
and
fostering
the
generation
of
earned
income.
In
the
aftermath
of
financial
crisis,
not
only
public
institutions
and
governments,
but
also
busi-
nesses
experience
difficulties
in
access
to
funding.
In
this
context,
our
research
shows
that
those
NPOs
that
adopt
a
proactive
marketing
orientation
and
build
a
strategy
to
gen-
erate
revenue
from
commercial
activities,
are
precisely
the
organizations
in
which
partnering
with
firms
and
internal
marketing
approaches
become
more
significant
capabilities
towards
enhanced
competitive
advantage.
Limitations
and
further
research
This
work
represents
a
starting
point
for
the
empirical
study
of
the
enormous
potential
that
partnerships
with
businesses
and
marketing
capabilities
have
for
improving
nonprofit
per-
formance
and,
ultimately,
for
better
addressing
complex
societal
problems
through
the
efficient
and
effective
use
of
the
resources
and
capabilities
of
these
service
organi-
zations.
However,
the
study
focuses
on
Spain,
a
European
country
that
has
been
especially
affected
by
the
recent
eco-
nomic
crisis.
Generalization
of
results
to
other
countries
under
different
institutional
settings
and
financial
circum-
stances
should
be
made
with
caution.
Furthermore,
we
have
only
analyzed
the
effects
of
coop-
erative
relationships
between
nonprofit
organizations
and
firms
on
the
development
of
capabilities
by
NPOs.
Thus,
more
research
is
needed
to
determine
the
impact
of
these
alliances
on
the
companies
involved,
particularly
under
the
internal
marketing
framework.
Another
possible
line
for
future
research
consists
of
evaluating
other
moderating
variables
that
could
influence
the
intensity
of
the
effects,
for
example
the
type
of
contributions
provided
by
the

Please
cite
this
article
in
press
as:
Álvarez-González,
L.I.,
et
al.,
Business-nonprofit
partnerships
as
a
driver
of
internal
marketing
in
nonprofit
organizations.
Consequences
for
nonprofit
performance
and
moderators.
BRQ
Bus.
Res.
Q.
2017,
http://dx.doi.org/10.1016/j.brq.2017.01.001
ARTICLE IN PRESS
+Model
BRQ-63;
No.
of
Pages
12
10
L.I.
Álvarez-González
et
al.
firm
(monetary
vs.
non-monetary
contributions).
Greater
research
effort
is
also
needed
to
analyze
other
outstanding
competences,
such
as
the
capability
of
nonprofits
to
deliver
social
innovation.
Finally,
the
contributions
of
this
work
suggest
some
promising
orientations
for
public
policies
concerning
the
nonprofit
sector.
These
include
the
promotion
of
profession-
alization
and
innovation
(e.g.,
by
means
of
the
provision
of
incentives
to
promote
those
BNPPs
aimed
at
the
devel-
opment
of
social
innovations,
such
as
entrepreneurial
joint
ventures
between
businesses
and
NPOs),
the
support
for
enhanced
financial
independence
through
revenue
diversi-
fication
utilizing
sustainable
commercial
sources,
and
the
provision
of
incentives
for
more
accountable
and
transpar-
ent
stakeholder
management
by
NPOs.
Acknowledgments
The
authors
acknowledge
funding
provided
by
the
Spanish
Ministry
of
Economy
and
Competitiveness,
as
part
of
its
R&D
Plan
(2009---2011),
for
the
project
entitled
‘‘Foundations
as
a
key
factor
of
Spanish
firms’
corporate
social
responsibil-
ity
strategy.
Bi-directional
analysis
of
the
foundation-firm
relationship
following
a
marketing
approach’’
(MICINN-09-
ECO2009-11377).
The
authors
also
acknowledge
the
Spanish
Association
of
Foundations
(AEF)
for
endorsing
that
research
project.
Appendix.
Measurement
scales
Mean
(S.D.)
NPO
affective
commitment
to
the
firm
AFC1
We
have
a
strong
sense
of
loyalty
towards
this
firm
5.31
(1.72)
AFC2
We
want
to
remain
a
partner
of
this
firm’s
because
we
genuinely
enjoy
our
relationship
with
them
5.96
(1.48)
AFC3
We
are
willing
to
make
long
term
investments
in
this
relationship
because
it
is
a
pleasure
working
with
them
5.57
(1.69)
NPO
trust
TRI
We
feel
this
firm
is
sincerely
concerned
about
our
interests
and
objectives
5.59
(1.39)
TR2
Activities
with
this
firm
do
not
have
to
be
closely
supervised
4.82
(1.89)
TR3
This
firm
can
be
relied
on
to
keep
their
promises
5.68
(1.30)
TR4
This
firm
is
trustworthy
5.97
(1.15)
TR5
The
management
of
this
firm
is
transparent
and
open
(regarding
our
relationship)
6.21
(1.06)
Internal
marketing
IIG1
The
NPO
emphasizes
on
understanding
personnel’s
(employees’
and
volunteers’)
needs
and
expectations
5.60
(1.30)
IIG2
The
NPO
regularly
assesses
personnel’s
job
satisfaction
4.87
(1.65)
Mean
(S.D.)
IIG3
The
NPO
knows
other
NPO
human
resource
policies
3.85
(1.89)
IIG4
The
NPO
knows
the
labour
market
situation
within
its
sector
of
activity
4.92
(1.72)
IID1
Personnel
report
about
their
problems
when
they
affect
their
performance
5.52
(1.43)
IID2
Top
management
regularly
collects
information
about
personnel’s
(employees’
and/or
volunteers’)
problems
in
performing
their
tasks
5.63
(1.33)
RESP1
The
jobs
are
appropriate
to
the
professional
capabilities
of
employees
and
volunteers
5.75
(1.18)
RESP2
The
NPO
human
resource
policy
takes
into
account
the
personnel’s
professional
development
5.46
(1.31)
RESP3
The
NPO
human
resource
policy
actively
seeks
to
improve
working
conditions
5.39
(1.41)
RESP4
The
NPO
has
a
Personnel
Training
Programme
4.41
(2.08)
Mission
accomplishment
MA1
Accomplishment
of
NPO
mission
and
goals
5.76
(1.09)
MA2
Satisfaction
of
beneficiaries’
demands,
needs,
and
expectations
5.48
(1.23)
MA3
Satisfaction
of
donors’
expectations
about
the
NPO
use
of
funding
5.72
(1.14)
Funding
FUND1
Increase
of
budget
for
developing
the
NPO
activities
4.14
(1.90)
FUND2
Increase
in
the
number
of
donors
3.71
(1.80)
FUND3
Increase
of
NPO
revenue
3.90
(1.88)
Scale
of
operations
SCALE1
Increase
in
the
number
of
NPO
activities
5.05
(1.67)
SCALE2
Increase
in
the
number
of
NPO
beneficiaries
5.12
(1.56)
Note:
Items
in
italics
were
eliminated
as
a
consequence
of
the
scales’
validation
process.
Sources
of
revenue
%
DONAT
SUBS
Donations
and/or
subsidies
96.4
FEES
Fees
for
services
and
goods
provided
58.6
RETURNS
Returns
from
real
estate
and/or
from
financial
assets
11.2
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Please
cite
this
article
in
press
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Álvarez-González,
L.I.,
et
al.,
Business-nonprofit
partnerships
as
a
driver
of
internal
marketing
in
nonprofit
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Consequences
for
nonprofit
performance
and
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BRQ
Bus.
Res.
Q.
2017,
http://dx.doi.org/10.1016/j.brq.2017.01.001
ARTICLE IN PRESS
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BRQ-63;
No.
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Business-nonprofit
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