Leadership succession and the performance of nonprofit organizations: A fuzzy‐set qualitative comparative analysis

Abstract

Leadership succession is critical to the performance of nonprofit organizations. Existing research has mostly treated leadership succession as an instantaneous event, and it has examined the independent effects of certain factors on organizational performance. However, little research has focused on the combinations of causally relevant factors. This article integrated organizational life cycle, resource dependence, and institutional theories, as well as the organizational fit literature, to explain how contextual and strategic factors combine to affect postsuccession performance. A fuzzy‐set qualitative comparative analysis (fsQCA) was used to analyze 15 succession events in Chinese environmental nongovernmental organizations (NGOs). The study identified four pathways to good NGO performance after succession. It also highlighted that it is not succession per se but the succession context (i.e. founders' control, board governance, professionalization, and political environment) and the strategic orientations of the successor that affect postsuccession performance in nonprofit organizations.