Strategy and Human Resources Management in Non-Profit Organizations: Its Interaction With Open Innovation

Article
Strategy and Human Resources Management in Non-Profit

Organizations: Its Interaction with Open Innovation
Márcio Oliveira 1,2,*, Marlene Sousa 3, Rui Silva 4 and Tânia Santos 3
1 NECE—Research Center in Business Sciences, University of Beira Interior, 6201-001 Covilha, Portugal
2 School of Education and Social Sciences, Polytechnic of Leiria, 2411-901 Leiria, Portugal
3 CICS.NOVA, IPLeiria—Interdisciplinary Centre of Social Sciences, Polytechnic of Leiria,
2411-901 Leiria, Portugal; [email protected] (M.S.); [email protected] (T.S.)

4 Department of Economy, Sociology and Management,
University of Trás-os-Montes and Alto Douro/CETRAD, 5001-801 Vila Real, Portugal; [email protected]
* Correspondence: [email protected]
Abstract: The socioeconomic changes that many countries have been experiencing in recent dec-
ades, caused by structural factors or by specific circumstances, where the pandemic crisis of COVID-
19 is only the most recent example, have posed challenges to organizations, which present them-
selves more and more and in various forms as threatened by the possibility of fulfilling their mis-
sion. Public and private sectors increasingly present themselves as insufficient to respond effectively
to day-to-day requests. This context of instability and the resulting impacts for non-profit organiza-
tions pose serious problems to the way in which governance is exercised and served as a motivation
for carrying out a study that aimed to understand the influence of strategy and human resources on
the governance of these organizations. A review of the literature on the variables under study made
it possible to identify the sub-dimensions associated with each one of them and the respective indi-
Citation: Oliveira, M.; Sousa, M.; cators. Thus, for a quantitative study, it was possible to apply a questionnaire to 242 Holy Houses
Silva, R.; Santos, T. Strategy and of Mercy in Portugal to understand the direct and indirect influences of strategic management and
Human Resources Management in
human resources management on the governance of these institutions. The results obtained show
Non-Profit Organizations: Its
the existence of a positive relationship between the variables under analysis, confirming that not
Interaction with Open Innovation. J.
only do these variables influence, by themselves and directly, the governance of the institutions
Open Innov. Technol. Mark. Complex.
studied, but also the strategy influences human resources policies, which in turn have implications
2021, 7, 75. https://doi.org/
10.3390/joitmc7010075
for the way the Holy Houses of Mercy deal with aspects associated with governance. It is concluded
that, in general, for these organizations to be more effective in efforts to improve their governance
Received: 15 January 2021 processes, they must focus on strategic management and human resources management instru-
Accepted: 20 February 2021 ments.
Published: 25 February 2021
Keywords: strategy; human resources management; governance; non-profit organizations; Holy
Publisher’s Note: MDPI stays neu- Houses of Mercy
tral with regard to jurisdictional
claims in published maps and insti-
tutional affiliations.
1. Introduction
The current pandemic situation that all countries of the world are going through has
Copyright: © 2021 by the authors. Li-
caused strong constraints on the development of economic activity, causing a worsening
censee MDPI, Basel, Switzerland. of social problems and, consequently, exerting strong pressure on social protection sys-
This article is an open access article tems.
distributed under the terms and con- This context of rapid changes in the dynamics of the societies in which we live in has
ditions of the Creative Commons At- provided non-profit organizations (NPOs) a reinforcement in their important role, as they
tribution (CC BY) license (http://crea- emerge as entities of great importance in combating poverty and other social problems,
tivecommons.org/licenses/by/4.0/). developing a commitment to the communities and assuming the development of social
responses aimed at solving their needs, often filling gaps that the welfare state and the
private sector do not solve or whose response is insufficient.
J. Open Innov. Technol. Mark. Complex. 2021, 7, 75. https://doi.org/10.3390/joitmc7010075 www.mdpi.com/journal/joitmc

J. Open Innov. Technol. Mark. Complex. 2021, 7, 75 2 of 20
In view of this growing importance of society, it is important to study how NPOs’

governance is established, since the guidelines assumed will influence various areas of
the management, such as strategic, financial and human resources, among others. “Amid
the COVID-19 pandemic, nonprofit leaders face constantly changing circumstances-some-
times hourly-and are adjusting their service operations based on directives from all levels
of government” [1] (p. 874).
However, the linearity of this reasoning may not be what is found in practice. Bearing
in mind the constant changes in the external environment and the growing and diverse
challenges that are imposed on NPOs in promoting social well-being, it is possible to ad-
mit that governance, even though it is the epicenter of the management of these institu-
tions, can receive influences of these other management areas, leading us to effectively
question where they come from and how the influences that determine governance per-
formance are exercised.
Regarding this exercise of influences in the management of these organizations, we
can then start by addressing aspects such as the search for autonomy and financial sus-
tainability and efficiency in the management of resources and services [2–7], so that these
institutions find a lasting, sustainable and stable path, such as the continuous improve-
ment of their economic and social performance.
With regard to strategic management, governance has been gaining importance in
NPOs, motivated by changes in the external environment caused by various factors such
as: the attribution of state subsidies based on the principle of efficiency and effectiveness
[8], the growing preponderance of partnerships based on collaboration agreements, to the
detriment of sponsorships [9,10], and the capture of financing and subsidies based on per-
formance and quality indicators of the work developed [11–15].
Regarding the management of human resources, we can verify that this dimension
of management assumes a strategic role, by fostering organizational effectiveness and
guaranteeing growth and competitiveness, enabling the maintenance and development
of its competitive advantages [16–23]. In this regard, it is possible to see that, in the specific
contexts of NPOs, even if the investment in human resources is lower than the average in
other sectors, the results in terms of employee performance are positive and decisive for
the fulfillment of their missions [24–27]. These organizations tend to assume that it is
through their human resources that new personal and organizational capacities are devel-
oped, focusing them on the added value of the institution, so their maintenance and man-
agement tend to be considered essential [28–32].
Such considerations lead us to believe that the governance in NPOs takes place in a
context that is, at least, very dynamic, where other areas of management, such as strategic
management and human resources, may have an influential and determining role.
To investigate this relationship, a study was carried out on the particular case of the
Holy Houses of Mercy, with the general objective of assessing the existence of interrela-
tionships between the following management areas: strategic management, human re-
sources management and governance.
The reasons for choosing this type of institution are centered on its widespread pres-
ence throughout the Portuguese territory, the age and history of its action, the diversity
of social services it provides and the growing importance with which it contributes to the
growth of the social economy.
The Holy Houses of Mercy appeared in Portugal and Spain at the end of the 15th
century. These institutions have always played an important role in social care for local
citizens, playing different roles in society, including health promotion, disease prevention
and care from a curative perspective, rehabilitation and reintegration. “Their presence and
performance have been, and are, fundamental to the Portuguese social security system”
[2] (p. 1). With a strong social character, they continue to be relevant and present through-
out the national territory, in the various decolonized countries of the old Portuguese em-
pire and in other territories that were influenced by Portuguese emigration, playing an
important role in social assistance to citizens [2].
According to the most recent data presented by the National Statistics Institute of
Portugal, there were 387 Holy Houses of Mercy in 2016. The information contained in the
Social Economy Satellite Account reveals that the gross value added generated by the
Holy Houses of Mercy represents 12.4% of the total created by all institutions of the social
economy (having increased 10.2% in the last 3 years). According to the same source, social
services represented 26.3% of the total remuneration created in the sector, followed by
health and education (15.2%), areas in which the Holy Houses of Mercy have a strong
presence. As for jobs created, the Holy Houses of Mercy represent 16.8% of the total jobs
created by NPOs.
Thus, the objective of this research is to verify the influence of strategy and human
resources management on the governance of the Holy Houses of Mercy in Portugal. It is
intended, therefore, to understand how the management areas related to strategy (STR)
and human resources management (HRM) influence the governance (GOV) of these insti-
tutions. Once the importance of human resources was determined, the influence of strat-
egy (STR) on governance (GOV) mediated by these human resources management (HRM)
was also tested. The data were analyzed using structural equation modeling using the
SPSS/AMOS 27 software.
Several authors have addressed the particularities of NPO management [33,34] and
recognized the importance of applying management tools and practices to NPOs [32,35–
37], not forgetting the social mission of these institutions and the values under which they
are governed [38]. Thus, the proposed study is innovative in that it analyzes the impact of
strategic management and human resources management on the governance of the Holy
Houses of Mercy, as its influencers are not as dependent on governance, in a relationship
that is not found in the relevant literature for the case of NPOs and, in particular, for the
institutions under study.
This article contributes to the development of the literature by providing an empirical
investigation of the effect of strategy and human resources management on governance,
by measuring the influence and the statistical significance of the strategy and the human
resources on the governance of NPOs.
The present study is a contribution to the practice in these institutions, in the sense
that they exercise their activity in an increasingly complex environment, with implications
for the decision-making process and the exercise of governance, with a bigger degree of
uncertainty. By pointing out the areas of management, their sub-dimensions and the con-
crete performance indicators that influence the performance of governance, the study
points out ways for better performance at this level.
Starting from the analysis of strategic management and human resources manage-
ment, and, again, taking into account their sub-dimensions and indicators with an influ-
ence on governance, the study also provides clues so that these NPOs can implement di-
agnostic plans, adapted to their specific realities and liable to be adapted to different so-
cial, economic, cultural, demographic or geographical realities.
On the other hand, knowing how these areas of management influence the exercise
of governance, the present study allows these NPOs to be able to intervene in a more
effective and assertive way in strategic and human resources issues, that is, upstream of
the problem, so that the governance performance can present a superior quality perfor-
mance. In this segment, practical aspects such as skills or profiles of human resources to
be privileged, or financial or action strategies in the face of social problems, among others,
may be redefined, since through this study, it is possible to perceive the influence that
they will have downstream.
This different approach to the issue in question presents itself as a new perspective
for the literature to assess issues influencing governance in NPOs. When we put govern-
ance, not as a point of departure, but as a point of arrival, in relation to what is revealed
in the practice of management in this type of organization, contrary to what the evidence
presents, for example, for the private sector, the discussion and the possibility of new
studies that deepen this dynamic in organizational management remain open.
The present work is structured as follows. It starts with this introduction. Then, a
literature review follows that addresses the concepts of strategic management, govern-
ance and human resources management and evidences the works that deal with the rela-
tionship between these variables in the management of NPOs. Section 3 contains the meth-
odology adopted. In Section 4 the main results obtained are presented and discussed. Sec-
tion 5 provides an overview of the main conclusions of the present investigation, reveals
its limitations and presents suggestions for future research.
This article contributes to the development of the current body of literature on the
influence of strategy and human resources management, investigating empirically how
these areas of management can have a direct and statistically significant influence on the
governance of Portuguese NPOs.
2. Literature Review
2.1. Governance and Strategic Management
Governance can be defined as the set of processes that the entity will adopt in its
management [39]. It is the set of practices that seeks to improve management in organiza-
tions.
The relationship between strategic management and governance has mainly been ev-
idenced in numerous empirical studies applied to the business reality. For example, [40]
studied how market-leading companies implement new strategic models and adopt gov-
ernance principles. The results obtained show the existence of relationships between cor-
porate governance, strategic management and corporate sustainability.
It also becomes evident that if the company’s vision and mission, essential compo-
nents of strategic management, are taken into account in corporate governance, the qual-
ity of the results is higher, achieving financial stability and sustainability [40]. Thus, it was
found that governance and strategic management influence the sustainability of organi-
zations. Governance improvements also influence strategic management, as the change in
internal and external factors that improve corporate governance will force changes in stra-
tegic management. In addition, corporate governance can be implemented in the human
resources function through codes of ethics and social responsibility.
However, research is not that abundant when applied to the reality of the third sec-
tor. Several studies have shown a lack of professionalism and the secondary importance
of management in third sector organizations. Works such as those by [41–43] reinforce the
need to implement principles, methods and management practices in NPOs. For this ap-
plication to become more efficient and profitable, its specificities must be respected and
resort to assessment formats and governance applications adapted to its characteristics,
namely, the mission, vision, principles and profile of the stakeholders.
In this sense, several authors, including [44–47], recognize the importance of estab-
lishing strategies and principles to integrate the principles of governance in NPOs as prof-
itable. They also argue that, in community-based organizations, information related to
governance should be optimized and made public. More significant mobilization and ef-
fective commitment provide more tangible support for encouraging decision making and
stakeholders’ participation. Further, concerning the application of governance principles
and practices, [48–50] consider that elements such as ethics, corporate responsibility, ac-
countability and transparency are applicable and are of paramount importance in third
sector organizations.
The author of [39] studied the management strategies of Private Institutions of Social
Solidarity in the Lisbon region and concluded that without a correct updated/renewed
use of management tools, NPOs will have serious difficulties in subsisting. These man-
agement tools include market orientation; the principles of good governance based on the
existence of well-defined missions and clear objectives aligned with the organizational
strategy, that is, the existence of strategic planning; internal and external communication
plans; financial monitoring and control systems; and transparency in the presentation of
accounts/results.
Although NPOs are not driven by profit generation, they must generate enough rev-
enue to pursue their social objectives and their strategic management must be designed
to achieve the goals of organizations [51]. Thus, their governance principles must be in
accordance with their strategic management, so that their actions lead to the achievement
of their objectives [51]. Regarding the specific case of the Holy Houses of Mercy, [5] carried
out a study applied to a Holy House of Mercy in the health area and concluded that a
business intelligence platform could be a useful instrument for decision making, as it pro-
vides factual information about the institution’s trends and needs, improving the quality
of service and user satisfaction.
The author of [52] also considered that NPOs that conduct adequate strategic plan-
ning to deal with uncertainty, mitigate deficiencies and continue to evolve present better
results and performance.
Aware of the evolution, trends and needs of NPOs and their agents, the OECD has
developed a set of fundamental principles of corporate governance, including the rights
and equal treatment of shareholders and main ownership functions, incentives for inves-
tors’ institutions and the importance of stock markets for good corporate governance, the
disclosure and transparency of information and the responsibility of the board of directors
[53].
The author of [39] considers that without correct/updated/renewed use of manage-
ment tools, NPOs will have serious difficulties in subsisting. These tools include: market
orientation; the principles of good governance based on the existence of well-defined mis-
sions and clear objectives aligned with the organizational strategy, that is, the existence of
strategic planning; internal and external communication plans; financial monitoring and
control systems; and transparency in the presentation of accounts/results. Thus, govern-
ance practices are influenced by the organizational strategy and must be in line with it so
that the objectives are achieved.
In [46], the NPOs adopt cooperative and pluralist governance systems, which are de-
termined by their strategic principles, and show a high capacity to better serve the inter-
ests of different stakeholders, improving the performance and institutional strength of the
organizations. In this way, the organizations’ strategy will positively influence the applied
governance principles, benefiting the action of stakeholders as social intermediaries.
Therefore, it is important to understand how the various dimensions of STR found
in the institutions under study (strategy formulation, strategic choices, implementation of
strategies, identification of externalities, measuring externalities, disclosure of externali-
ties) have a direct and positive influence on the governance performance.
Based on the literature review, and supported by the work of [39,40,45–47,51,52], we
propose the following hypothesis:
Hypothesis 1 (H1). Strategy (STR) has a direct and positive influence on the governance
(GOV) of the Holy Houses of Mercy.
2.2. Strategy and Human Resources Management

The relationship between strategic management and human resources management
has also been studied over time. Several authors argued that the alignment between or-
ganizations’ strategies and their human resources practices is fundamental for human re-
sources to be a competitive advantage source [54–57].
In 1982, [56] argued that if human resources were considered in strategic planning,
both in formulation and implementation, companies would be able to design systems that
reflect their philosophy and relate their attitudes and values to their strategic plans. The
authors of [22] reinforce this idea, stating that the objectives and the organizational strat-
egy influence the human resources management practices implemented, interfering with
organizational performance.
For [57], multinational companies will only achieve their ambitious strategic objec-
tives if they can attract, retain and develop highly qualified people to implement their
strategies, arguing that human resources are the key elements to ensure successful strate-
gies.
Considering the importance of the relationship between strategic management and
human resource management in NPOs, human resources key features must assume spe-
cial relevance and financial resources must be combined in the most effective manner, in
such a way as to prevent extreme dependence on external funding sources [51].
Social organizations need to have the capacity to acquire, develop and maintain their
human resources with the necessary skills to develop their organizational strategy. There-
fore, the strategic principles of these organizations must be taken into account when for-
mulating human resources strategies [58,59].
In this sense, it is becoming increasingly evident that NPOs must emphasize the fi-
nancing needs of their activities and the management of human resources. As found in
companies, in NPOs, the people who work in these organizations are fundamental to
achieve the proposed objectives. Thus, the strategic management of human resources,
combined with motivation, leadership and communication, is the basis for the effective
use of human potential, becoming a source of success and efficiency in any organization
[51].
This paper attempts to verify an evolutionary version of the resource-based view
(RBV), according to which human resources become a competitive advantage [17]. Based
on the relationship between human resources and competitive advantage, the RBV theory
was complemented by other evolutionary perspectives on the creation of human resource
competencies, such as [20], [60–64], that “can help us to understand the conditions under
which human resources become scarce, valuable, firm-specific, difficult-to-imitate re-
sources, i.e., ‘strategic assets’” [65] (p. 759). Further, [66,67] present an evolution of the
RBV theory, assuming that human resources are “high-value” assets in the organizations
and, therefore, considering that competitive advantage is related to their skills portfolio.
The proposed study was based on the approach to strategic management from Por-
ter’s view [55] in its approach structure, behavior and performance. Following Porter’s
perspective, it is possible to understand the internal factors and the external factors that
influence an organization’s performance. Thus, based on strategic diagnoses (internal and
external), action plans will be developed according to the results of such diagnoses and
priority investments will be identified, based on competitive forces and internal assets,
considering and minimizing vulnerabilities, and allocating and leveraging strategic re-
sources to speed up new opportunities and challenges, which are continually changing.
Thus, it is important to understand whether and how the various dimensions of the
STR applied to NPOs, which have already been pointed out previously, have a direct and
positive influence on the human resources of these institutions. In other words, it is in-
tended to ascertain how strategic management aspects influence motivation, perfor-
mance, practices, training support instruments or volunteering.
Based on the literature review, and supported by the works of [51,57,59], we propose
the following hypothesis:
Hypothesis 2a (H2a). Strategy (STR) has a direct and positive influence on the human
resources management (HRM) of the Holy Houses of Mercy.
Having been able to find evidence in the literature about the ubiquity of the influence
of human resources on the generality of the management areas, in this type of institution,
we intend to determine if the possible influence of STR in GOV could occur with the in-
termediation of HRM. In other words, it is intended to assess whether the strategic issues
prevalent in these NPOs, which will influence the way governance is performed, are in-
fluenced by the motivation of human resources, individual performance, practices, train-
ing support instruments or volunteering, since these are sub-dimensions associated with
human resources.
Once again, based on the literature review, and supported by the works of [51,57–
59], we propose the following hypothesis:
Hypothesis 2b (H2b). Strategy (STR) has a direct and positive influence on the governance
(GOV) mediated by the human resources management (HRM) of the Holy Houses of Mercy.
The formulation of this hypothesis is based on the resource-based view theory that
proposes a direct cause–effect relationship between strategy in governance, the influence
of human resources management on governance, and a strategy’s ability to influence gov-
ernance supported by the good functioning of human resources in these non-profit insti-
tutions [17]. Based on the relationship between human resources and competitive ad-
vantage, the RBV theory has been improved and investigated from other evolutionary
perspectives related to the creation of competencies in human resources [60–64]. These
human resources assume vital importance in the success of governance because they are
scarce, valuable and specific assets in this type of institution [65]. Human resources are
valuable assets for organizations and, therefore, capable of creating a competitive ad-
vantage that allows them to enhance governance [66,67].
2.3. Human Resource Management and Governance

Human resources are at the heart of the corporate governance, as it is impossible to
achieve governance principles without the full contributions of human capital [68]. Know-
ing that the organization’s objectives and human resources management practices are mu-
tually reinforcing, [68] defended the integration of the human resources management pol-
icies in the organization’s general corporate strategy, as well as the governance principles
adopted.
The author of [40] states that corporate governance can be implemented in the human
resources function through codes of ethics and social responsibility. Conversely, human
resources strategies may influence the principles of governance.
The author of [69] studied the perceptions of NPO volunteers on NPOs’ governance,
verifying that they have a significant impact on their individual commitment and identi-
fication with the NPOs, resulting in higher perceptions of organizational effectiveness.
The empirical results emphasize the significant role of organizational identity and the
commitment of volunteers as mediating variables, providing implications and practices
for NPO managers.
The author of [70] considered that the organizations which invest in human resources
practices and strategically align them with their mission, objectives and governance prin-
ciples are able to increase the motivation and maintenance of their volunteers.
Thus, in this last study hypothesis, we intend to assess whether HRM, by itself, and
as a dimension or area of management with considerable relevance for NPOs, has a direct
and positive influence on GOV.
Based on the literature review, namely, the works of [40,68–70], we propose the fol-
lowing hypothesis:
Hypothesis 2 (H3). Human resources management (HRM) has a direct and positive influ-
ence on the governance (GOV) of the Holy Houses of Mercy.
3. Methodology
For the present quantitative investigation, an exploratory methodological approach
was adopted to better understand how the strategy and human resources management
can influence the institutions’ governance under study. A literature review was conducted
on these variables under study based on the calculated STR and HRM indicators. A ques-
tionnaire was developed and applied (Appendix A). This questionnaire was composed of
three parts, where the first part contained a set of generic questions about the respondent
and where the second and third parts were composed of sets of questions, with the possi-
bility of answering according to the five-point Likert scale, varying from “totally disagree”
to “totally agree” and aimed at determining the respondent’s degree of agreement for the
different STR and HRM indicators.
The sample consists of 242 Holy Houses of Mercy, which correspond to 62.5% of the
universe of 387 Holy Houses of Mercy currently in operation in Portugal.
The data were collected in person, between November 2018 and December 2019,
through the application of questionnaires, within the scope of audits carried out through
the program “Misericórdias–Gestão Sustentável” of the Union of Portuguese Mercies. For
this purpose, managers, technicians and workers from these institutions were surveyed.
3.1. Validity and Reliability of the Measurement Model

To assess the convergent validity and reliability of the model, the average variance
extracted (AVE), composite reliability (CR) and Cronbach alpha (α) were examined, only
using the measurement items whose factor loadings (AVE > 0.5; CR > 0.7; α > 0.7) were
within acceptable statistical parameters [71]. Concerning the sample size, this satisfies the
criteria for structural equation analysis, which proposes a minimum of 5 observations for
each variable of the model [72,73]. The author of [72] suggested similar limits but pro-
posed complex models with few indicators per construct and larger samples. According
to the sources referred to above, it can be stated that the sample used is sufficient for the
use of structural equation models. The structural equation model presented allows a mul-
tivariate analysis to test more complex models than the traditional linear regression [74].
3.2. Confirmatory Factorial Analysis

The choice of the best factorial model is fundamental in CFA, being indispensable to
observe factorial loads and errors that statistically validate it and corroborate its adequacy
in the study conducted [75].
The analysis of the research model that has been proposed resorted to confirmatory
factor analysis (CFA), using a structural equation model (SEM) and SPSS/AMOS 27 soft-
ware [76]. The mediation model was tested (for validity and reliability of the measures)
according to the literature, and several research hypotheses were tested to determine the
meaning of loadings and coefficients of each path [71].
For the realization of the CFA, the model was tested with the nine dimensions of the
strategy (STR), human resources management (HRM) and governance (GOV) items and
factors, and it was verified, through the calculation of Cronbach’s alpha (α), that there is
a good total internal consistency (α = 0.923) for the sample of 242 respondents. The internal
consistency for all items that make up the model is demonstrated by Cronbach’s alpha (α)
being higher than 0.9, revealing the validity and internal and explanatory reliability. The
use of Cronbach’s alpha (α) is a statistical technique widely used and cited by several
authors to demonstrate that the tests and scales that were built or adopted are relevant in
explaining the investigation results [77]. It should be noted that the values of composite
reliability (CR), average variance extracted (AVE) and Cronbach’s alpha (α) presented
were obtained after removal of items with a factorial load below 0.5. The removal of these
items allowed a substantial increase in all the robustness measures presented in Table 1.
The final model (Figure 1) presented a more robust adjustment after removing the varia-
bles HRM3, HRM7, GOV1, GOV2, GOV3, GOV4, GOV12, GOV16 and GOV18 with load-
ings less than 0.5 (Table 1).
Figure 1. Final research model.
Table 1. Validity and reliability of constructs.
Average
Composite Cronbach’s
Constructs Items Loadings Variance
Reliability Alpha
Extracted
STR1 0.854
STR2 0.879
STR3 0.881
Strategy 0.847 0.671 0.924
STR4 0.780
STR5 0.760
STR6 0.753
HRM1 0.677
HRM2 0.676
Human Resources
HRM4 0.963 0.848 0.504 0.912
Management
HRM5 0.937
HRM6 0.868
GOV5 0.733
GOV6 0.675
GOV7 0.626
GOV8 0.752
GOV9 0.748
Governance GOV10 0.737 0.848 0.520 0.935
GOV11 0.722
GOV13 0.756
GOV14 0.762
GOV15 0.782
GOV17 0.550
According to the statistical literature, variables with loads less than 0.5 (HRM3, GOV1, GOV2,
GOV3, GOV4, GOV5, GOV12, GOV13, GOV16 and GOV18) were removed to create a statistically
more robust final research model.
The CFA, with maximum likelihood, performed demonstrated that the model tested
presented an adequate adjustment (χ2 = 1125,978, p = 0.001, df = 314, χ2/df = 3.586, RMSEA
= 0.069, CFI = 0.901, GFI = 0.891) [60], after removing some items (HRM3, GOV1, GOV2,
GOV3, GOV4, GOV5, GOV12, GOV13, GOV16 and GOV18) that made it statistically more
robust, having excluded all items whose factorial loads were less than 0.5 [72,78]. Figure
1 shows the standardized path coefficients in which all the paths of the model were sig-
nificant (p <0.001).
4. Results
The tested research model (Figure 1) allowed verifying that STR influences (β = 0.660;
p <0.001) HRM, with (β = 0.290; p <0.001), in the GOV of the NPOs under study. The model
also explains that STR has an influence on HRM of (β = 0.640; p <0.001) and, finally, STR
has an influence on HRM-mediated GOV of (β = 0.422; p <0.001), validating the hypotheses
H1, H2a, H2b and H3.
In Table 2, it is possible to see a summary of the hypotheses that were tested.
Table 2. Research hypotheses and statistical results.
Regression Standard
Hypothesis Relation t p-Value Result
Coefficient Error
H1 STR→GOV 0.640 0.059 7.503 <0.001 Supported
H2a STR→HRM 0.660 0.061 7.404 <0.001 Supported
H2b STR→HRM→GOV 0.422 0.004 4.318 <0.001 Supported
H3 HRM→GOV 0.290 0.070 4.171 <0.001 Supported
The results of the structural model tested (Figure 1) indicate that the dimensions of
STR and HRM have a direct, positive and statistically significant influence on GOV, sup-
porting the research hypotheses formulated (H1, H2a, H2b and H43).
4.1. Analysis and Discussion of Results

Analyzing the influence of the STR and HRM dimensions on GOV (Table 1), we find
that both dimensions have a strong impact on the GOV performance of the institutions
under study, which confirms H1 and H3, echoing the studies by [40,46,51]. It was also
possible to ascertain the influence of STR on HRM, which confirms H2a, and that from
this combination between STR and HRM, once again, there is an impact on GOV, which
confirms H2b. This demonstrated that strategy influences NPOs’ governance with human
resources management as the predictive mediator. These results align with the studies by
[58,59].
In this way, we move first to the analysis of H1’s confirmation. We advanced the
study with the assumption that there would be an influence of STR on GOV, according to
[40]. It was possible to ascertain that all the sub-dimensions that make up the STR (formu-
lation of strategies, strategic choices, implementation of strategies, identification of exter-
nalities, measurement of externalities and disclosure of externalities) have statistical rele-
vance in the performance of GOV.
This is equivalent to saying that, regarding the formulation of strategies, the first sub-
dimension under analysis, it was possible to verify the existence of a set of relevant indi-
cators for the STR composition, with a substantial impact on the institutions’ GOV. As
they prove to be decisive for this influence among the variables under study, it is im-
portant to highlight the following STR indicators: a clear definition of the entity’s current
strengths, weaknesses, threats and opportunities; a proactive attitude regarding the use
of forces to combat threats; a proactive attitude regarding the use of opportunities to com-
bat weaknesses; the exact definition of the institutions’ mission and vision; the existence
of methods to compare the institutions’ performance with similar entities; the existence of
a balanced balance sheet in terms of fulfilling the mission vs. economic and financial sus-
tainability; the existence of reflection processes that allow anticipating future (predictable)
developments; the existence of explicit strategies for attracting and integrating volunteers;
the creation of strategic partnerships; the commitment of the entity’s managers to plan-
ning; the establishment of medium- and long-term objectives; and consideration of alter-
native scenarios. These indicators related to the sub-dimension “formulation of strategies”
are echoed in [44].
With regard to strategic choices, the second sub-dimension under analysis, it was
possible to identify another set of relevant indicators for this influence of STR on the GOV
of these institutions: regular analysis of the direction of the performance of the entity with
the specific intention of evaluating the effective strategies; regular management analysis
of the needs and/or capabilities of the agents involved; definition of actions by the man-
agement in order to enhance their performance; the definition of indicators to assess the
implementation of strategies and the establishment of periodic targets; translating strate-
gies into action plans and identifying the resources needed for their implementation; hav-
ing methods to compare their performance with similar entities; the alignment of re-
sources with the key vectors of the strategy advocated by the entity; formal collection of
updated information on the evolution of the community; the formal collection of infor-
mation about potential users and their needs; the use of external agents in order to seek
support for development and consolidate new strategies; the regular review and discus-
sion of goals and indicators of achievement/achievement/achievement of the strategy; and
taking corrective measures when there are deviations from compliance with the strategy.
These indicators related to the sub-dimension “strategic choices” are related to [45]’s con-
tributions.
A third sub-dimension that makes up an STR that influences GOV is the implemen-
tation of strategic choices. This corresponds to saying that when implementing its strat-
egy, the institution must be transparent in accountability, in the scheduling of activities,
in the distribution of resources and in the definition of priorities for employees, which is
in line with [46]’s contributions.
The fourth sub-dimension that makes up the STR is the identification of externalities.
This sub-dimension of STR corresponds to indicators such as the ability to sufficiently
identify the externalities that the institution generates for the community, the entity’s con-
stant concern with the improvement of the critical processes that effectively create value
for its users (current and potential) and the attention given to users to be heard in the
process of developing the entity’s mission, as key elements for the recognition of value
creation. The indicators related to this sub-dimension are echoed in [47].
A fifth sub-dimension points to the measurement of externalities contributing to an
STR with a substantial impact on GOV. For this, the institution must be able to sufficiently
measure the externalities it generates for the community, to carry out studies that allow it
to quantify the value generated in the community (positive externalities) and to ascertain
the degree of satisfaction of the agents with which it relates, namely, family members,
other reference groups of users and employees of the entity. The STR indicators calculated
in this fifth STR dimension are related to [26]’s contributions.
Finally, the present study found that STR is composed of the last sub-dimension, the
disclosure of externalities. For that purpose, the institution must be able to perceive the
value of the positive externalities generated by the patrons and/or potential funders and
must have the notion of the importance of the community to have a realistic perception of
the value created by the entity, of the relevance of the community to understand that the
institution fulfils its mission and of the importance of disseminating, for marketing pur-
poses, the added value provided to the community and users. These indicators point in
the direction of [51]’s contributions.
After analyzing the results that allow us to confirm H1, we focus our attention on the
results related to the validation of H3. Regarding the strong impact found by HRM in
GOV, with a direct positive influence on the structural model studied, which in turn con-
firms H3, it should be noted that such findings are in line with the literature considered
for the present study, according to the authors of [41–43].
These authors reinforced the need to implement principles, methods and manage-
ment practices in NPOs which include the increase in acceptable practices at the level of
HRM in the typology of institutions targeted in this study, respecting their specificities
and using format assessments and applications according to their characteristics, namely,
regarding the mission, vision, principles and profile of the stakeholders.
From the analysis carried out, it was found that HRM is composed of five sub-dimen-
sions (motivation, performance, practices, tools to support training and volunteering).
This is equivalent to saying that an HRM has an enormous direct influence on the
GOV if, according to the first sub-dimension, employees have good levels of motivation,
good levels of productivity and a high degree of proactivity, demonstrate a positive and
optimistic attitude and feel like real managers of the entity, as an integral part, wearing
the jersey. Also relevant are indicators such as a strong sense of organizational identity,
care in the use of the organization’s resources, explicit knowledge of the organizational
vision, mission and culture, the prevalence of an adequate level of collaboration between
these employees, the non-verification of difficulties at the level of communication between
them and the prevalence of a good relationship between the directors and employees of
the entity. Finally, it is important to mention the importance of promoting activities that
increase employees’ motivation levels and the promotion or incentive of teamwork. These
contributions are echoed in the studies by [56].
The second sub-dimension of an HRM with a strong impact on GOV is performance.
The constituent elements of this sub-dimension include the existence of some type of for-
mal performance evaluation within the entity and the existence of a process for selecting
employees through a professional area in the organization because the delegation of re-
sponsibilities is an established practice at the entity, due to the existence of a human re-
sources management process (objectives, activities, performance, etc.) to be operational-
ized by a professional area. In addition to these indicators, others such as performance
evaluation take into account factors that encourage and privilege teamwork, the preva-
lence of a good work environment experienced within the institution, the prevalence of
an environment that enables the debate on problems/obstacles to satisfactory performance
and the prevalence of good functioning of the institution (spirit of mutual help). The indi-
cators of this second sub-dimension of HRM are related to [22]’s contributions.
To characterize the HRM that strongly influences GOV, a third sub-dimension is
composed of practices. This sub-dimension is composed of indicators such as the employ-
ees’ salaries are regularized (up to date) because there are other tangible incentives, other
than salaries, to motivate employees to pursue the objectives and a search for continuous
improvement; and the existence of habits of employees in complying with the rules/inter-
nal regulations, for the existence of data that allows verifying that all respect the formal
hierarchy and because there are formal moments of feedback between the entity’s man-
agement and employees, regarding the quality of its performance. This third dimension
is also composed of indicators that go against [22]’s contributions.
The fourth sub-dimension of HRM is made up of instruments and training support.
This includes indicators such as the identification of the training needs of employees; their
periodical review and updating; the existence of a formal competence balance within the
entity; the existence at the institution of any employee with training in the area of training
management; the institution’s accreditation in the field of training organization; the prev-
alence of the notion that training is something assumed to be important within manage-
ment; the existence of their own facilities where training actions can take place; the exist-
ence of adequate equipment for training; and the availability, to employees, of adequate
support documentation (in quality and quantity). The indicators of this fourth sub-dimen-
sion of HRM are aligned with the contributions of [58].
Finally, the last dimension of an HRM that strongly influences GOV is volunteering.
In this regard, it is essential to mention that it is crucial that the institution surveys each
volunteer’s skills and abilities and proceeds to assess their work, which provides them
with adequate feedback regarding their performance. It is also important that volunteers
are assigned to activities according to their skills, and that the global impact of volunteer
work is measured and disseminated. The institution should also provide specific training
for the activities that they will perform, provide the opportunity for volunteers to work
side by side with paid employees, performing the same tasks, ascertain whether the vol-
unteers know and see themselves in the entity’s mission and identify the degree of ease
in attracting volunteers. The indicators of this fifth sub-dimension of HRM that influence
GOV are echoed in [59].
Having found the results that confirm H1 and H3 and identified the components that
characterize and compose STR and HRM with a strong influence on the GOV of the insti-
tutions under study, it is now possible to notice that there is also a strong influence of STR
on HRM, which confirms H2 advanced in the present study. It is possible to find an echo
of this relationship in the literature through the contributions of [54–56]. These authors
defend a close relationship between HRM and STR, even for organizations in the private
sector. The authors of [22] reinforce this idea, stating that the objectives and the organiza-
tional strategy influence the human resources management practices implemented, inter-
fering with organizational performance.
Thus, it is equivalent to say that, under the terms in which STR and HRM were pre-
viously presented, for the institutions under study, there is a powerful influence of the
strategic formulations, the strategic choices, the implementation of strategies, the identi-
fication of externalities, the measurement of externalities and the disclosure of externali-
ties on the performance of all HRM components.
Finally, focusing the attention on the positive influence on the structural model stud-
ied, which indicates that STR indirectly influences GOV by its impact on HRM, we can
classify H2b as valid. Regarding this perspective, we can refer to the contributions of the
authors of [44–46], who recognized the importance of establishing strategies and princi-
ples in order to increase the implementation of governance principles in NPOs, address-
ing the perspectives of STR and HRM in which the present study relies on.
It is thus possible to state that, under the terms in which STR and HRM were previ-
ously presented, for the institutions under study, strategic formulations, strategic choices,
the implementation of strategies, the identification of externalities, the measurement of
externalities, the disclosure of externalities, motivation of human resources, their perfor-
mance, their practices, the instruments to support their training and the commitment to
volunteering have a decisive influence on GOV.
In summary, the results of the present study constitute a reinforcement of the contri-
butions of previous studies, in the context of NPOs, namely, [44–47], which point towards
the existence of a relationship between STR and GOV. Further, the investigations devel-
oped by [57–59] evidence a relationship between STR and HRM, like our study. Lastly,
the authors of [68–70], just like in this study, suggest the existence of a relationship be-
tween HRM and GOV.
5. Discussion: Open Innovation in Non-Profit Organizations

The relationship of NPOs with innovation management models is a fundamental as-
pect nowadays, since we are witnessing permanent changes in organizational contexts, in
the implementation of the strategy, in the collaboration between people and entities and
in the way that governance is exercised. It is also increasingly important to identify the
activities that add value to these organizations. The so-called open innovation is a concept
popularized in 2003 by Henry Chesbrough in the book Open Innovation: The new imperative
for creating and profiting from technology, which was based precisely on the collaboration
between people and external entities in organizations, with the use of the benchmarking
technique, and that helps us to identify the relationship between the two concepts.
For [79], open innovation means that valuable ideas can come from inside or outside
the company and reach the market. In reality, the idea of openness supposes a break with
the traditional philosophy of not revealing issues of internal knowledge to the outside,
recognizing the opportunity to obtain competitive advantages through the relationship
with professionals and external organizations, sharing resources and knowledge and es-
tablishing alliances and partnerships. In a broader analysis, the objective is to accelerate
internal innovation and expand markets for external use of innovation, influencing organ-
izational results. Open innovation needs to combine internal research with external ideas
and then implement those ideas, both in NPOs’ systems and in the systems of other or-
ganizations.
For [80], the key element for these organizations is to discover what the organization
lacks, what can be achieved internally and what can be integrated, coming from the out-
side. Unlike the traditional model of vertical integration, open innovation also leads us to
search for external sources of ideas, in addition to internal knowledge flows, in order to
increase the innovation process [79]. This can provide NPOs the advantage to create new
ideas, technologies, methodologies, processes and strategies and provides the possibility
of expanding and/or diversifying the way in which governance is exercised.
However, in the case of NPOs, the literature on open innovation is scarce [81]. These
organizations are not yet seen as a source of open innovation. In addition, many theoreti-
cal and practical contributions are still lacking in understanding the main benefits associ-
ated with open innovation practices in NPOs. While it can be argued that the literature
clearly demonstrates the benefits of innovation for companies that have a focus on exter-
nal engagement with diverse organizations, little attention has been paid to the specific
context of NPOs as organizations in the context of open innovation.
For [82], open innovation, despite being a new model of innovation management,
shows itself as a viable alternative to maintain and expand knowledge, capturing value
and sustaining business, highlighting the acceleration of the time to launch and commer-
cialize products, using external knowledge and the economic use of projects not devel-
oped by companies. Transposing this reality to the context of NPOs, and to the troubled
moment in which these organizations try to respond to the requests of their target audi-
ence and when they try to fulfil their missions, it can be seen that, now more than ever,
the adoption of these open innovation practices makes perfect sense.
Trying to understand how strategy and human resources management are exercised,
in the light of the concept of open innovation and its implications for the way in which
governance is exercised in these NPOs, is to meet the contributions of [79], who tells us
that we have to analyze how to improve products and processes in an innovative way
within the organization and understand what the external environment wants us to im-
prove.
In the present investigation, it was found that, first, all the sub-dimensions that make
up the strategy of these organizations (strategy formulation, strategic choices, strategy
implementation, identification of externalities, measurement of externalities and dissem-
ination of externalities) have direct statistical relevance in the governance of the organiza-
tions under study. Second, it was found that there are five sub-dimensions that make up
human resources management (motivation, performance, practices, tools to support train-
ing and volunteering), with an equal influence on governance. Finally, it was found that
the strategy, indirectly, also influences governance, through the impacts it causes in the
management of human resources.
These results, in the light of open innovation, indicate that the governance of NPOs
must have characteristics that allow a greater engagement of civil society, based on the
formulation of their policies with more open and democratic principles, leading to new
forms of democratic participation, where principles of polycentric governance predomi-
nate [83]. In doing so, it is helping to dissolve traditional boundaries between public, pri-
vate and civil society actors [84].
In other words, when these organizations formulate, choose or implement strategies,

when they identify, measure or disclose externalities, when they implement initiatives
aimed at increasing the motivation or performance of their human resources or implement
practices or instruments for the development of skills, or even when they bet on volun-
teering, in the light of open innovation, they should do so not through a non-traditional
approach, but rather from a perspective that promotes an exchange of ideas and values
between public and private actors, internal and external, according to the contributions of
[85]. Further, [86] suggested that open social innovation supports and, in turn, is sup-
ported by new governance practices and that there is ample evidence that points to the
reciprocal benefits resulting from strong relationships between local government and or-
ganizations of the civil society, for social cohesion, for organizational development and
for sustainable development. Thus, the adoption of new approaches to governance trans-
lates into new ways of bringing organizational sustainability to these NPOs, which is es-
sential for NPOs to be able to continue the path in the fulfilment of their missions.
In short, the current context of uncertainty and social instability in which we live in
has brought new challenges to NPOs, which are increasingly seen as those organizations
capable of supplying or mitigating the disabilities of the public or private sectors. This
desire poses challenges in terms of fulfilling their missions. Governance practices, which
are decisive for this purpose, are highly influenced by the measures or initiatives taken in
terms of strategic management and human resources, in which the more they follow the
principles of open innovation, the more benefits they will bring to these organizations and
the more guarantees of a sustainable organizational offer.
6. Conclusions, Limitations and Future Research

6.1. Conclusions
In a context of particular social and economic instability, where all sectors of activity
suffer from the consequences of the COVID-19 pandemic crisis, NPOs are increasingly
challenged to provide social responses, according to their missions, since public and pri-
vate sectors are unable to act as diligently as desired by society. In this context, studies
that allow us to understand these organizations’ performance and dynamics become rel-
evant. To this end, it is vital to understand how governance is exercised in NPOs and how
management variables such as strategy and human resources influence, directly or indi-
rectly, the performance of these organizations’ leadership.
A set of indicators grouped by sub-dimensions allowed us to characterize each of the
dimensions under analysis with the influence on governance and showed that, both indi-
vidually (H1 and H3) and indirectly (H2a and H2b), strategy and resource management
influence the governance of the NPOs under analysis. In other words, not only imple-
mented aspects related to strategy and human resources influence governance, but also
the strategy influences human resources policy, resulting in a list of variables that also
decisively influence governance.
In this sense, we can realize that NPOs, which seek to improve their performance in
terms of governance, should pay particular attention to the aspects that have an impact
on their strategy and their human resources, so that neglecting these variables, as an im-
portant part of the management, would bring additional difficulties in fulfilling their so-
cial missions. The results obtained influence the people management strategy and gener-
ate action plans for various organization levels and areas and can be considered a relevant
contribution to the theory.
Thus, faced with an increasingly demanding environment, where the public and pri-
vate sectors prove to be increasingly insufficient to provide the social responses that peo-
ple and economic and social agents demand, NPOs play an increasingly essential role.
This context means that, increasingly, the leaders of these organizations adopt a set of
management processes, which must start with aspects related to their strategy and human
resources, in order to optimize their governance practices, as emphasized in this investi-

gation.
The indicators calculated for each sub-dimension of each variable under study, can
be considered contributions to the practice, as they point out the essential aspects to be
intervened, in case these institutions intend to improve their performance.
6.2. Limitations and Future Research

This study focuses on one type of NPO, the Portuguese Holy Houses of Mercy. As
such, the traditional limitations of this typology apply to the non-possibility of generaliz-
ing the results to other types of organizations or sectors of activity.
The results of this investigation should be seen in the context of an exploratory study,
an approach to a relatively little explored field of study, if we take into account its vastness
and the special features of this type of organization and its differences for organizations
in the private sector and the public. In this sense, it is important to emphasize the need
and relevance of carrying out complementary studies that could confirm (or not) some of
the main conclusions to which this study led us.
The determination of the influence of the variables under study in these organiza-
tions’ governance does not invalidate that there are no other dimensions of management
that may also be relevant. As suggestions for future work, it would be interesting to in-
vestigate the influence of several important aspects that are important in the management
of such special organizations, considering their social mission, such as: financial manage-
ment, technologies and systems and information, communication and marketing, supply
management, heritage management, knowledge management and even social responses
management.
The study of the strategy, human resources and governance dimensions allowed for
the accuracy of several sub-dimensions for each of these management perspectives in the
organizations under study. The prevalence and weight of the indicators related to these
sub-dimensions may be targets for future studies, in order to allow a better understanding
of the dynamics of the dimensions under study in NPOs. The more in-depth this study is,
the closer the scientific community will be to being able to point out a performance matrix
to be implemented, in practice, by these NPOs.
Taking into account the sub-dimensions found in the present study, it is also recom-
mended to carry out studies that analyze the impact of the implementation of concrete
measures that prove to be contrary to the promotion of human resources strategies and
policies, and that, in this way, may impair the performance governance of these NPOs.
Data collection, treatment and analysis took place in a context before and during the
pandemic crisis of COVID-19. If this fact serves as a motivation to propel this study, at the
same time, it presents itself as a limitation, since the organizational and cyclical reality
that will occur at the end of this crisis may be dramatically different.
Only future comparative studies will allow us to understand how the social, political,
economic or other consequences can influence the variables under study or other areas of
the management of the Holy Houses of Mercy. Finally, it is suggested that this type of
study be extended to other organizations in the non-profit sector, such as cooperatives,
mutual societies, charities and local development, among others.
Author Contributions: Conceptualization, M.O., M.S., R.S. and T.S.; methodology, R.S.; software,
R.S.; validation, M.O. and R.S.; formal analysis, M.S. and T.S.; investigation, M.S. and T.S.; writ-
ing—original draft preparation, M.O., M.S., R.S. and T.S.; writing—review and editing, M.O.; visu-
alisation, R.S.; supervision, M.O.; project administration, M.O. All authors have read and agreed to
the published version of the manuscript.
Funding: The work of the author Rui Silva is supported by national funds, through the FCT-Por-
tuguese Foundation for Science and Technology under the project UIDB/04011/2020.
Data Availability Statement: Not applicable.
Acknowledgments: The authors gratefully acknowledge the Polytechnic of Leiria (School of Edu-
cation and Social Sciences), NECE—Research Center in Business Sciences, University of Beira Inte-
rior, CICS.NOVA.IPLeiria—Interdisciplinary Centre of Social Sciences, University of Trás-os-Mon-
tes and Alto Douro and CETRAD (Centre for Transdisciplinary Development Studies).
Conflicts of Interest: The authors declare no conflicts of interest.
Appendix A
Questionnaire applied to the Holy Houses of Mercy within the scope of this investi-
gation.
Table A1. Questionnaire.
Authors
Dimensions Sub Dimensions Questions
Reference
The entity periodically conducts an internal and external analysis to Rodrigues and
Strategy formulation
define objectives to formulate appropriate strategies. Malo [44]
The entity periodically reviews its strategic choices, considering the Bukhari et al.
Strategic choices
goals and indicators of achievement of objectives. [45]
The entity implements its strategic choices, rectifies deviations and
Implementation of establishes action plans, taking into account strategic partnerships,
Taylor [46]
strategies identifying and allocating resources, priorities, and activities to be
Strategy
developed.
(STR)
The entity can identify the externalities it generates for the community,
Identification of Cabral De Ávila
considering the improvement of processes, development of the mission,
externalities and Bertero [47]
and social value creation.
The entity can quantify and measure the externalities it generates for the
Measuring externalities Garcia [26]
community.
The entity can publicize the externalities it generates for the community
Disclosure of externalities Kicová [51]
and captures the perceived value.
Devanna et al.
Motivation The entity’s human resources have good levels of motivation.
[56]
Human resources are subject to a performance assessment, formal or Boselie and
Performance
Human informal, aimed at the entity’s proper functioning. Paauwe [22]
Resources The entity promotes practices aimed at promoting, developing, and Boselie and
Practices
Management encouraging human resources. Paauwe [22]
(HRM) Training support The entity identifies and provides resources that aim to provide human Bloom and
instruments resources with better access to training. Chatterji [58]
Bloom and Smith
Volunteering The entity promotes, disseminates and evaluates voluntary work.
[59]
Knowledge of the user’s The entity has strategies that promote the relationship with users’ family
Saltaji [40]
family reality members to increase their family reality knowledge.
Ethics and social The entity has a system for promoting and monitoring ethical practices Tsai and
responsibility and social responsibility of its employees. Yamamoto [48]
The entity promotes practices of action with the community, with
Action with the Leal and Famá
positive impacts, whether at social, environmental, economic or financial
community [50]
levels, contributing to its sustainable development.
The entity promotes external audits that include the impacts of its
Governance Machado Filho et
Performance impacts activities on a social, environmental, economic, financial level and the
(GOV) al. [49]
community’s sustainable development.
The entity promotes a culture of quality, continuous improvement and Woerrlein and
Quality system
adaptation of organizational processes. Scheck [15]
The entity promotes initiatives aimed at strengthening relations between
Relationship networks people inside and outside the organization to capture and develop new Saltaji [40]
ideas, good practices, and legislation compliance.
The entity has a communication plan, defined and diversified channels,
Communication plan Garcia [26]
to transmit its projects and their value to the community.
The entity has and streamlines marketing tools and strategies to cover
Marketing Garcia [26]
the different target audiences in sufficient diversity.
The organization organizes events open to the community and
Community involvement Saltaji [40]
participates in third party events.
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Strategy and Human Resources Management in Non-Profit

2411-901 Leiria, Portugal; [email protected] (M.S.); [email protected] (T.S.)

J. Open Innov. Technol. Mark. Complex. 2021, 7, 75. https://doi.org/10.3390/joitmc7010075 www.mdpi.com/journal/joitmc

In view of this growing importance of society, it is important to study how NPOs’

2.2. Strategy and Human Resources Management

2.3. Human Resource Management and Governance

3.1. Validity and Reliability of the Measurement Model

3.2. Confirmatory Factorial Analysis

Figure 1. Final research model.

Table 1. Validity and reliability of constructs.

Table 2. Research hypotheses and statistical results.

4.1. Analysis and Discussion of Results

5. Discussion: Open Innovation in Non-Profit Organizations

In other words, when these organizations formulate, choose or implement strategies,

6. Conclusions, Limitations and Future Research

resources, in order to optimize their governance practices, as emphasized in this investi-

6.2. Limitations and Future Research

Table A1. Questionnaire.

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