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Purpose

This paper explores the characteristics and organisational attributes of hybrid non‐profit organisation (NPO)/public sector settings to identify the particular challenges presented for performance management and to further explore the extent to which such characteristics and attributes might impinge on a move to “performance governance” as a performance framework ideal type.

Design/methodology/approach

A preliminary case study of an Irish NPO/public sector hybrid organisation was used to ground a review of NPO and public sector performance management concepts and theoretical developments. The review focused on the implications of organisational characteristics/attributes of the hybrid case study organisation for performance management.

Findings

Five organisational characteristics/attributes are identified as central to the understanding of the challenges for performance management in such settings: inter‐stakeholder relationships; tensions across priority objectives; culture and institutional clashes; power distribution; and interdependent stress. Further, it is suggested that while the adoption of collaborative public sector models suggests a move toward performance governance, the performance challenges identified in the hybrid setting give rise to particular barriers to any substantive movement in that direction.

Originality/value

Performance of NPO/public sector hybrid organisations has only relatively recently attracted the attention of researchers. The paper contributes to this emerging area by identifying certain organisational characteristics/attributes particular to such hybrids that are critical to understanding the challenges for performance management in such settings.

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