Commercial heads, social hearts? Organizational changes and effects of civil society organizations becoming more business-like: a literature review

A growing body of literature points at the increasing hybridization of civil society organizations (CSOs) by incorporating entrepreneurial practices, values and ideas, but also focuses on the presumed risks of non-profits becoming more 'business-like'. The central question to this debate is whether non-profit organizations are able to adopt for-profit practices and yet perform their social mission. Touching upon the larger issue of welfare governance, the hybridization of civil society organizations is a rather politicised issue drawing both public and academic criticism ranging from cautious warnings to wholehearted opposition. However, in this – often normative – discussion, the impact of becoming business-like on the organizational level tends to be overlooked. The distinction between non-profit and business-like concepts are only clearly distinguished in terms of goals, i.e. on the level of mission and strategy, in contrast to governance arrangements and management practices. Although much of the non-profit management literature aims to support non-profit managers, research on how 'becoming business-like' is practically implemented in the non-profit context as well as the perceived effects is fragmentary of nature and understudied. A more fine-grained analysis is further complicated by a multitude of overlapping yet distinct concepts. Based on a systematic study of the international literature, this paper addresses this lacuna by mapping the internal changes and effects as a result of a more 'business-like' manner of organization within non-profits over the last 25 years as well as by providing a clear conceptual outline. The focus is on the (re-)definition of civil society organizations' missions and strategies, on changing governance arrangements and shifting management practice.

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