Abstract
Keywords
Introduction
Research on strategic human resource management (SHRM) in nonprofit organizations (NPOs) is growing in importance, especially as these organizations seek to balance multiple, often competing demands in their operating environments (Guo et al., 2011; Ridder, Baluch, & Piening, 2012; Walk et al., 2014). Organizations in the nonprofit sector are founded to address a range of issues and needs, such as social, health, cultural, education, and advocacy; it is thus of importance that human resource management (HRM) contributes adequately to these goals. SHRM is understood “as the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals” (Wright & McMahan, 1992, p. 298). Scholarship on SHRM is home to both the contingency perspective in which HR systems are shaped by different contextual factors, particularly the organizational strategy, and a configurational approach that focuses on the internal consistency of bundles of HR practices and their congruence with organizational goals as central to achieving performance (Delery & Doty, 1996; Lepak & Snell, 1999).
Turning to the field of SHRM in NPOs, there are only a few key theoretical approaches. Ridder and McCandless (2010) introduced a model of HR architectures in NPOs that draws on the building blocks of the strategic and resource-based approaches in the SHRM literature. Subsequently, Akingbola (2013a, 2013c) emphasized the contextual factors that drive HR practices in NPOs. Although these conceptual approaches highlight the contingencies, HR architectures, and their proposed relationships to outcomes, our understanding of SHRM in the nonprofit field remains limited in three respects:
These approaches have been used as a theoretical background for interpreting empirical findings (e.g., Kelliher & Parry, 2011; Kellner et al., 2017; Walk et al., 2014), yet we lack a comprehensive understanding of the disparate strands of empirical evidence drawing on these conceptual approaches.
Although further studies have identified new insights that are not addressed in these approaches (e.g., Valeau, 2015), the field requires integration and synthesis of these new themes and developments.
SHRM in NPO scholarship is characterized by a plethora of studies that remain fragmented due to heterogeneity in their approaches, methods, and findings.
As such, we do not have a clear picture about the recent theoretical developments and empirical insights with regard to SHRM in NPOs. A decade after the main conceptual approaches (Akingbola, 2013a, 2013c; Ridder, Baluch, & Piening, 2012; Ridder & McCandless, 2010), the time is ripe to take stock of key themes and reflect on the directions in which this nascent and growing area of research might move.
To achieve these aims, this study provides a comprehensive systematic review of recent SHRM studies in NPOs published between 2008 and 2017. Following Denyer and Tranfield’s (2009) five-step approach to systematic review and employing a structured content analysis, we draw on the aforementioned conceptual approaches to distinguish between research focusing on the content, process, and outcomes of SHRM. Our review identifies key themes that shed light on these three areas of inquiry (
Our study makes several contributions to the field of SHRM in NPOs. First, our systematic review of the literature synthesizes a fragmented body of research and maps out the relationships into a more integrated whole. Second, mapping the research landscape provides insights into the tensions NPOs face between external pressures and values, highlighting in particular the underexplored role of managerial discretion in shaping NPOs’ differing responses. We also expand the resource orientation to include the dimension of social capital and identify new empirical manifestations of HRM types. Third, alongside our avenues for future research on content, process, and outcomes of SHRM, the
Conceptual Foundations of SHRM in NPOs
If we look to the field of SHRM in NPOs, there are only a few key theoretical approaches. Ridder and McCandless (2010) introduce a model of HR architectures in NPOs that is based on the overarching notion of human resource (HR) systems architecture (Arthur & Boyles, 2007; Lepak & Snell, 2002). This model distinguishes between two dimensions that shape HRM in NPOs: strategic and HR orientations. In the strategic orientation, SHRM contributes to an organization’s outcomes through achieving a vertical fit (alignment between the organization’s HR and overarching strategy) and a horizontal fit (coherence between HR practices or bundles of practices; Wright & Snell, 1998). According to this strategic perspective, a nonprofit’s values, mission, and the expectations, needs, and goals of its internal and external stakeholders (e.g., the board, competitors, and funders) drive the strategic orientation (Ridder & McCandless, 2010; Ridder, Piening, & Baluch, 2012).
The HR orientation, grounded in the resource-based view (RBV), understands an organization’s internal resources, specifically the organization’s HR capital pool as a source of sustained competitive advantage if this human capital is utilized through organization-specific HR practices (Barney & Wright, 1998; Wright et al., 2001). The specific characteristics of intrinsically and highly motivated nonprofit employees alongside their needs are considered the basis of HR practices and shape the HR orientation (Ridder, Baluch, & Piening, 2012). Together, these strategic and HR orientations are proposed to reflect a broad variety of characteristics and account for the variety of reasons for which organizations adopt and implement HR practices; thus, Ridder and McCandless (2010) argue these dimensions range along a continuum from a low to high value. Juxtaposing these nonmutually exclusive dimensions results in a typology of four HR architectures: administrative, strategic, motivational, and values-based HRM.
Ridder and McCandless’s (2010) model of HR architectures was developed further to shed light on the synergies arising from interrelated HR practices within a HR architecture (Ridder & Baluch, 2017; Ridder, Baluch, & Piening, 2012). In line with the HR systems structure, each of the types is expected to have different HR principles, programs, practices and employees’ perceptions thereof, leading to different effects. This model seeks to account for differences in the contribution of HRM to employee-related and performance outcomes. It has witnessed growing influence in the nonprofit literature, being examined in a variety of empirical studies and contexts (e.g., Kellner et al., 2017; Valeau, 2015; Walk et al., 2014).
In contrast, Akingbola (2013a, 2013c) seeks to conceptualize the organizational goals and characteristics stemming from contextual factors that drive HR practices in NPOs. Drawing on the RBV and resource dependency theory, Akingbola (2013c) examines the determinants of strategic nonprofit HRM that reflect the complex interactions and processes that characterize the environment in which NPOs operate. In this approach, the specific environment of nonprofits sets unique and institutional variables for strategy formulation. The complexity of the social mission entails operating in an institutional environment driven by social and cultural phenomena. This requires consideration of social needs, funders, government, clients, regulations, and an investigation into unique interactions and processes. The specific environment in which nonprofits operate provides—in this view—institutional resources and capabilities (e.g., volunteer participation, quality of employees). Therefore, research in nonprofit HRM has “. . . to pay detailed attention to social and institutional contingent variables” (Akingbola, 2013c, p. 235).
Akingbola (2013a) distinguishes between different models of nonprofit HRM, arbitrary, administrative, values-based, strategic, and mutual HRM, emphasizing that these models of HRM vary in terms of the contextual drivers. This conceptual approach captures a wide range of assumptions about the relationships between contextual factors, nonprofit strategy and strategic nonprofit HRM principles, system-level and organizational characteristics, HR practices, managerial competencies and behaviors, alongside the skills and attitudes of nonprofit employees.
Comparing the two approaches, one strand focuses on the HR systems structure and interrelated practices that make up the HR architecture of NPOs (Ridder & McCandless, 2010), while the other devotes attention to the contingencies of HRM in NPOs (Akingbola, 2013a, 2013c). Albeit from different angles, both approaches conceptualize about what shapes the design of HRM and HR architectures.
Drawing broadly on these aforementioned conceptual approaches, our review has three aims: First, our aim is to systematically take stock of the field and investigate what factors drive the
The second aim of our article is to identify key themes around the
Our third aim is to integrate insights from research on SHRM
Method
To address these aims, we conducted a comprehensive systematic review in five stages (Denyer & Tranfield, 2009; Tranfield et al., 2003). First, we selected our bibliographic database and journals using the Web of Science and excluded those not on the 2017 Harzing’s Journal Quality list to capture all of the high-quality nonprofit and public management, general management, and HRM journals in the field. Our search strategy set the search period between 2008 and 2017 to account for all recent developments in the field since a prior review of the literature (Ridder & McCandless, 2010). In a second step, we conducted a keyword search of articles using a combination of relevant SHRM search strings, such as nonprofit/not-for-profit/third sector/voluntary sector* AND *HR, HRM, HR practice, HR bundle, human capital, social capital, HR, RBV. Third, we compiled an initial sample of 180 selected abstracts. Fourth, each author read these abstracts and applied the exclusion criteria (e.g., non-HRM topics; public or private organizational settings; special issue introductions), reducing our data set to 77 articles. In a final stage, both authors read the full text of each publication, resulting in further reduction of outliers and a final data set of 74 articles.
The articles in our data set reveal that this body of research is growing incrementally, as evidenced by the increasing trend in the publication of studies on SHRM in NPOs from 2008 to 2017. As shown in Figure 1, there is a rise in publications from 2009 to 2015, yet with the highest number of articles published in 1 year amounting only to 12, the field is still very much in its infancy.

Trend in publications on SHRM research in NPOs (2008–2017).
In terms of the range of journals in which this work is being published (see Table 1), the highest number of articles features in
SHRM Research in NPOs Data Set.
Coding and Analysis
As outlined above, the categories of content, process, and outcomes are derived from our comparison of the main conceptual HRM approaches in the nonprofit literature.
Through independent first-level coding, each author first coded all of the abstracts along the three main categories (content, process, outcomes). With a percentage agreement in intercoder ratings of 85% between the two authors, we resolved the remaining differences in coding through discussions and, where necessary, by cycling back to the full text of the studies. In independent second-level coding of the full text, both authors coded each content, process, and outcome study using a coding sheet with the aforementioned pre-specified codes. At the same time, we remained open for further codes that emerged during the analysis (e.g., “external pressures”; “HRM in change processes”), adding these to the coding sheet. Thereafter, we compared the occurrences of the prespecified codes in an iterative process, returning to the full text with the agreed-upon emergent codes and further discussion of the occurrences of the second-level coding. A full list of the codes can be seen in Table 2, alongside the occurrences of these in the 74 articles in our data set. Several articles are labeled with multiple codes, and a few studies fall into multiple categories of content, process, and outcomes.
Prespecified and Emergent Codes in the Data Analysis.
We employed structured content analysis techniques to inductively surface themes from the data. By conducting within-theme and cross-theme comparisons for the content, process, and outcome studies (Duriau et al., 2007; Krippendorff, 2013), we moved from the initial codes to patterns in the data to key themes. This process entailed bundling the studies into groups across these first-order codes to identify patterns or second-order categories (Gioia et al., 2013). Through an inductive and iterative process of cycling back and forth between the studies and the emerging higher-level categories, we aggregated from these patterns into key themes in the content studies, such as “tensions, managerial discretion and variety in responses,” “social capital,” and “hybrid” HRM. We repeated this procedure of inductively surfacing key themes for the process studies (e.g., “expectations”) and outcome studies, such as multidimensional views of performance. Finally, we used these themes to map the research landscape which captures the observed relationships between these different themes identified in our systematic review.
From our systematic review, we can glean the trends in the emphasis and direction of SHRM research in the nonprofit field, as depicted in Figure 2. When dividing the data set into content, process and outcome studies, we see that the 41 content articles remain the dominant and constant focus of the research. In contrast, studies on outcomes are fewer (20 total) and fluctuate over time, although these do make up the largest proportion of studies in 2016. Process articles remain scarce over the 10-year time period (13 total) with no more than three publications per year.

Trends in the focus of SHRM research in NPOs.
Findings
Iterating between the emergent key themes and the studies in our systematic review, we map the research landscape of SHRM in NPOs. Figure 3 highlights these themes and demonstrates the relationships we observed between these patterns. In the following, we present these new insights.

Mapping the research landscape of SHRM in NPOs.
Managerial Discretion: Between External Pressures and Unique Values
Our review revealed new emergent themes of tensions, managerial discretion, and variety in responses that center on the role of managers in shaping and accounting for differences in organizational approaches. First, the review confirms an ongoing tension between external pressures and unique values.
External pressures confront NPOs at the heart of their
Second,
Strategic Orientation
Stemming from the prior themes of tensions between external pressures and nonprofit values, our review demonstrates that an NPO’s strategic orientation is driven by
Resource Orientation
The resource orientation builds on the strong alignment of values and mission with the unique needs and expectations of nonprofit employees. Studies reveal that resource-oriented NPOs start from the intrinsic motivation of their
In addition to the aforementioned specificities in human capital, our review reveals that the resource orientation encompasses
Configurations of HRM
Resulting from the influence of the strategic and resource orientations, our review identifies empirical patterns of HR configurations. Against the background of contingency approaches to SHRM in NPOs (Akingbola, 2013c) and previously identified HR architectures (Ridder & McCandless, 2010), there is confirmation of empirical manifestations of HRM types (administrative and employee-oriented HRM) and new types emerge as well (hybrid).
Administrative HRM Dominates the Scene
Our review identifies a large group of studies dealing with single HR practices and their effects (Chang et al., 2015; Cortis & Eastman, 2015; Froelich et al., 2011; Grasse et al., 2014; Haley-Lock et al., 2013; Haley-Lock & Kruzich, 2008; Kelliher & Parry, 2011; Mastracci & Herring, 2010). These studies confirm the overall diagnosis that the HR function in NPOs is more or less
Administrative HRM has consequences for employees as well. Our review identified an abundance of studies that evidence
Employee-Oriented HRM: More Rhetoric Than Reality
Only a few empirical studies in our review reflect the resource orientation through the usage of employee-oriented practices that emphasize the
Hybridization to Balance Conflicting Demands
Our review surfaces an emerging research strand that identifies how NPOs are
Balancing contradictory demands is furthermore evident in Kellner et al.’s (2017) investigation of how two separate and potentially conflicting HRM systems—values-based and high performance—can coexist in an NPO. A modified high-performance work system (HPWS), consisting of strategic HR planning, recruitment, performance management, and learning and development, leads to improvement in employee engagement and well-being through being tempered by a strong relationship to a values-orientation. This balancing is found to mitigate potentially conflicting elements of a strategic high-performance approach to HRM and complements the organization’s religious values. Despite the NPO’s objective to generate surplus funds and improve performance, delivering on mission remains paramount: “mission and margin are dance partners, and you have to remember that it is the mission that is the lead” (Kellner et al., 2017, p. 1957).
Our review therefore points to a further emergent theme as balancing contradicting demands leads to the
Processes: Scarcity of Research on Implementation and Employees’ Perceptions
Implementation processes are not very well researched in the field of SHRM in NPOs. At the strategic level, our review demonstrates that leadership matters—whether considering processes of change in general or implementation processes specifically—there is a focus on the
Research on the operational level is fragmented, and unsurprisingly, the usual barriers emerge such as the
Compared with the for-profit realm, our review indicates very few studies address the variation in employees’ perceptions of and responses to HR practices. In the scarce research, the theme of a
Fragmentation in Outcomes
A key topic in research on
In terms of employee satisfaction, factors such as pride in the organization, ethical standards, trust within the organization, and job autonomy are identified as having an impact on job satisfaction and work–life balance satisfaction (Lee, 2016; Visser et al., 2016). Employees who perceive their HR practices and organizations positively are less likely to leave or intend to leave the organization; even in times of crises, employees increase their loyalty, involvement, and attachment to nonprofit goals (Mano & Giannikis, 2013; Selden & Sowa, 2015). Similarly, the strengths of their attachment with clients or customers dampen the adverse effects of pay dissatisfaction on intention to leave (Treuren & Frankish, 2014).
Research emphasizing
Research on nonprofit values adopting a multidimensional view of performance suggests mixed results. Contrary to expectation, a nonprofit value prioritization does not constitute a competitive advantage and lead to better organizational performance, although some implemented nonprofit values enhance quality outcomes and overall success (Helmig et al., 2015). In addition, management by values mediates the effect of ethical-social organizational values on the developmental performance of NPOs (Kerwin et al., 2014). Although there is some evidence of a multidimensional understanding of performance, most studies in our review examine single HR practices and link these to one-dimensional outcomes.
Finally, our review identifies only a few studies on HRM and
Discussion
Existing conceptual approaches to SHRM in NPOs emphasize contingency factors (Akingbola, 2013c) and configurations of HRM (Ridder, Baluch, & Piening, 2012). Based on these conceptual foundations, we systematically investigated the content, process, and outcomes of SHRM in NPOs in our data set of 74 articles. Thus far, our review extends the antecedents of SHRM with regard to tensions, managerial discretion, and variety in responses and it identifies new empirical manifestations in HR configurations. Furthermore, we unearth the underexplored aspects of processes in the implementation of HR practices and disentangle effects into HR, organizational, and financial performance outcomes. At the same time as synthesizing and mapping these key themes and new developments in the literature, our review aims to reflect on the directions for future scholarship in this nascent field.
Avenues for Future Research: Content
With regard to
However, the evidence base remains thin, and the influence of managerial discretion has not garnered much empirical attention in relation to differences in organizational approaches to HRM. Our first direction for the future research landscape, therefore, is (a)
Stemming from the prior themes of external pressures and unique values, our review confirms that the organization’s strategic orientation is driven by different contexts and organizational goals, leading to different usage of HR practices. At the same time, a new theme emerges that inspires further exploration of the resource orientation. Beyond highlighting the human capital dimension of the resource orientation (i.e., intrinsic motivation of employees), a new wave of studies reveals the authentic role of social capital as a driver of the mission and the cooperation of the members of the NPO (e.g., Mourão et al., 2017; Schneider, 2009). Although a primary focus in for-profit organizations (Donate et al., 2016), the social capital dimension remains a gap in the nonprofit SHRM literature. Therefore, a fruitful direction for future research is (b)
Our findings regarding the configurations of HRM reveal that literature on administrative HRM is saturated with studies that identify the struggles, barriers, and deficiencies of HRM in NPOs, and that it is unnecessary to confront NPOs continuously with normative-laden demands to improve their HRM if the underlying conditions remain constrained. Surprisingly, our review reveals that employee-oriented HRM remains a cool spot that is underdeveloped in the literature. Although we know a lot about the human capital dimension, especially with regard to intrinsic motivation, only a few studies investigate into the transfer of a resource orientation into HR practices (e.g., Fee & McGrath-Champ, 2017). Therefore, we encourage future nonprofit research (c)
Our review suggests an increasing interest in strategic HRM and at the same time reveals variations of this HRM type that are fragmented in response to the complexity of the environment. These findings confirm that the increase of managerial discretion leads to a logic of different strategic responses. Our review yields new evidence for the differentiation of strategic HRM and co-existence of different HRM configurations in an NPO (Cunningham, 2017; Kellner et al., 2017), the latter of which likely leads to different groups of employees in NPOs being treated differently (Lepak & Snell, 1999). Depending on the strategic importance of these groups, NPOs may offer different terms and conditions to their core permanent versus temporary fixed-contract employees.
In addition, a small array of rich case studies provides in-depth insights into different empirical manifestations of hybridization across HRM types as a means of balancing conflicting demands (Ridder, Piening, & Baluch, 2012; Walk et al., 2014). Further research is needed to better understand the new HR configurations emerging in response to these challenges. Therefore, it seems fruitful for future SHRM scholarship (d)
Iterating our findings with the above outlined conceptual and empirical SHRM literature, these insights strengthen arguments regarding strategic responses to tensions between external pressures and values, alongside an employee-oriented focus. Bearing potential to inform wider SHRM scholarship, our findings echo recent calls for a better understanding of the move to a multistakeholder perspective in SHRM (Beer et al., 2015).
Avenues for Future Research: Processes
While content research is more developed,
Furthermore, there are very few studies dealing with the variation in employees’ perceptions of and responses to HR practices. A more comprehensive exploration of this topic is needed, especially in light of the identified role of expectations from our review (e.g., Baluch, 2017; Piening et al., 2014). Until we know more about how and why employees perceive HRM, reasoning about the effects of HR practices remains speculative (Nishii et al., 2008). Of particular interest are the differences in employees’ perceptions and reactions in relation to HRM configurations. Building on for-profit SHRM research (Bowen & Ostroff, 2004; Khilji & Wang, 2006), our assumption is that different types will lead to variations in perceptions and responses.
Therefore, future research would benefit from studies that seek (e)
Avenues for Future Research: Outcomes
Finally, the majority of the SHRM research in NPOs is still focused on
Avenues for Future Research: Interplay Across Content, Process, and Outcomes
Viewing the above future research avenues regarding content, process, and outcomes of SHRM in conjunction, we also argue that the body of nonprofit SHRM scholarship would benefit from the richness of exploring the relationships between the aforementioned key themes. Most research in our review addresses the content, process, or outcomes of SHRM in NPOs; only a few studies overlapped in one or more of these categories. We therefore encourage nonprofit researchers (g)
With regard to
Second, the interplay of strategic and/or resource orientations is of interest (
Additional rich insights can be gained from a holistic view of HR systems and configurations in conjunction with the implementation of HRM and employees’ perceptions thereof (
In a similar vein, linkages between HR systems, employee outcomes, and performance outcomes are worthy of further investigation (
Our systematic review of SHRM in NPOs is not without limitations. The keywords, journals, and timeframe of our search strategy are inevitably restricted by the inclusion and exclusion criteria. For example, we purposefully did not include articles pertaining to civil society as we view this as an area of research with a distinctive lens. Similarly, as scholarship on SHRM focuses mainly on paid employees, we excluded the vast body of nonprofit literature on volunteer management. By conducting our search in published journal articles, we are unable to include research developments in book chapters, monographs, unpublished theses, and gray literature. As a result of these parameters, our review does not claim to capture an exhaustive data set of studies on SHRM in NPOs. Furthermore, other related areas of literature to SHRM remain outside our search. These bodies include relevant work on the organizational life cycle, organizational change, and nonprofit governance, particularly the role of the board of directors in shaping strategy, resources, and the configurations of HRM, which are likely to be useful for informing future SHRM scholarship in NPOs.
