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Contingency theory, performance management and organisational effectiveness in the third sector

Author

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  • Billy Wadongo
  • Magdy Abdel-Kader

Abstract

Purpose - – The purpose of this paper is to develop a theoretical framework that explains how performance management (PM) affects the organisational effectiveness in the third sector. Design/methodology/approach - – The authors adopt a two stage process in developing the theoretical framework; a systematic review of literature and theoretical developments of the framework. The underlying principles for developing the theoretical framework are mainly based on prior theoretical justification and empirical research in management accounting and international development fields. Findings - – Drawing upon contingency theory, the authors propose a theoretical framework explaining how the contingency variables affect PM and organisational effectiveness in the third sector. The authors discuss the justification for contingency theory as well as its weaknesses in the PM research. The authors also highlight how a modified Performance Management and Control Framework could be used to identify PM practices in the third sector. The organisational effectiveness can be measured using the four domains the authors suggest in this paper. Finally the authors put forward propositions that can be empirically tested in future studies. Research limitations/implications - – This conceptual paper opens an opportunity for future empirical research to cross-validate the model in a large survey through confirmatory factor analysis and structural equation modelling. Practical implications - – This paper helps researchers and practitioners to understand how modern PM tools integrate with third sector characteristics to optimise the effectiveness of individual organisations. Originality/value - – Integrating insights across disciplines, this paper strengthens cumulative knowledge on conceptualisation of PM and effectiveness within the third sector.

Suggested Citation

  • Billy Wadongo & Magdy Abdel-Kader, 2014. "Contingency theory, performance management and organisational effectiveness in the third sector," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 63(6), pages 680-703, July.
  • Handle: RePEc:eme:ijppmp:v:63:y:2014:i:6:p:680-703
    DOI: 10.1108/IJPPM-09-2013-0161
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    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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    Cited by:

    1. Michael Murimi & Billy Wadongo & Tom Olielo, 2021. "Determinants of revenue management practices and their impacts on the financial performance of hotels in Kenya: a proposed theoretical framework," Future Business Journal, Springer, vol. 7(1), pages 1-7, December.
    2. Tze San Ong & Boon Heng Teh & Ah Suat Lee, 2019. "Contingent Factors and Sustainable Performance Measurement (SPM) Practices of Malaysian Electronics and Electrical Companies," Sustainability, MDPI, vol. 11(4), pages 1-33, February.
    3. Marco Aurélio de Oliveira & Antonio Schalata Pacheco & André Hideto Futami & Luiz Veriano Oliveira Dalla Valentina & Carlos Alberto Flesch, 2023. "Self‐organizing maps and Bayesian networks in organizational modelling: A case study in innovation projects management," Systems Research and Behavioral Science, Wiley Blackwell, vol. 40(1), pages 61-87, January.
    4. Adrien Fariala & Olawumi Dele Awolusi, 2021. "An assessment of Key Success Factors for Construction Projects in the Democratic Republic of Congo," Information Management and Business Review, AMH International, vol. 13(2), pages 16-34.
    5. Li Xian Liu & Fuming Jiang & Jizhong Li & Omar Al Farooque, 2021. "Antecedents of Equity Fund Performance: A Contingency Perspective," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 1-40, March.

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