Technological and Organizational Innovations and Financial Performance: Evidence from Nonprofit Human Service Organizations

The aim of this research was to explore whether several types of innovations were related to relevant measures of nonprofit organizations' financial performance. Data on innovations were collected via a survey of nonprofit human service organizations. Financial performance indicators were obtained from IRS 990 forms. The results showed that technological innovation was not a significant predictor of financial performance. Organizational innovation was a significant predictor of total assets, total revenues, and ER. Based on the results of this study, practice implications are discussed along with suggestions for future research.