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Purpose

Alongside public agencies and private firms, non‐profit organizations (NPOs) play a vital role in the delivery of human services in a number of advanced nations. The purpose of this paper is to advance a theory of leadership to try to explain how NPOs can overcome the various forms of voluntary sector failure described by Salamon.

Design/methodology/approach

Examines the conditions under which leadership style is likely to prevail and the influence they are likely to have on the direction of local government reform.

Findings

Advances a theory of leadership to better understand this problem and its implications for public policy.

Originality/value

Adds to existing literature by demonstrating that leadership can ameliorate some kinds of voluntary sector failure.

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