Entrepreneurial orientation in nonprofit organizations: The role of human capital and stakeholder engagement capability

Abstract

This study presents a novel mediation model to examine the antecedents of entrepreneurial orientation in nonprofit organizations. We examine the interplay between human capital, organizational capabilities, and entrepreneurial orientation employing a resource‐based theory perspective. We study how human capital at different hierarchical levels within these nonprofits contributes to entrepreneurial orientation through stakeholder engagement capability. Using a multirespondent survey (1400 upper‐echelon respondents) and secondary data from 178 Belgian nonprofit organizations, our findings reveal a notable dynamic. Human capital at board, top management team (TMT), and staff levels operates in synergy with stakeholder engagement, thereby influencing entrepreneurial orientation. We identify an “operational package” where TMT and staff are important in achieving high entrepreneurial orientation. On the other hand, there is a “strategic package” where the board is of primary importance in achieving high entrepreneurial orientation.