Is peer regulation perceived as an effective mediator to strengthen the mission orientation of INGO leaders?

In: Nonprofit management & leadership, Band 33, Heft 3, S. 609-631

Abstract

AbstractInternational non‐governmental organizations (INGOs) operate in competitive funding markets and face political pressures, which can incentivize their leaders to compromise their mission‐oriented strategy for more resource security. This article empirically investigates whether INGO leaders perceive peer regulation as an effective governance mechanism that allows them to strengthen their mission‐oriented strategy to withstand these economic and political constraints. In particular, we assess whether peer regulation is perceived to promote organizational learning processes. We test a partial least squares structural equation model (PLS‐SEM) based on a unique data set from an international survey among 201 INGO leaders from 21 countries. Our findings suggest that INGO leaders indeed perceive that peer regulation strengthens their mission orientation, despite the economic competition and political opportunity constraints their organization faces. This effect is partially mediated by organizational learning processes. Our findings are based on a constructivist perspective that emphasizes the learneffect of peer regulation on INGOs' strategic orientation, and allows the derivation of several managerial recommendations to foster INGOs' strategic autonomy.