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Nonprofit Innovation

Pathways to innovation in nonprofits: stakeholder feedback and public value orientations

PMR — pp. 1-38 2026-04-28 Original Pathways to innovation in nonprofits: stakeholder feedback and public value orientations Byung Hee Min, Sungdae Lim, Daniel L. Fay Abstract Nonprofits adapt through innovation, yet how stakeholder communication drives innovative change remains underspecified. We argue that nonprofit public value orientations (NPVOs)—community-serving and cause-commitment—mediate links between communication and innovations. Using survey data from U.S. nonprofit executive directors and structural equation modeling, we examine the mediating effects. External communication, particularly with volunteers and funders, is positively associated with NPVOs and, in turn, with higher innovation likelihood. Communication with funders is associated with both orientations, while communication with volunteers primarily supports the community-serving orientation. The findings reveal complementary value pathways connecting stakeholder communication to nonprofit innovation.