Accountability in third sector organizations
Organizational identification and member retention in nonprofit organizations: communication and accountability
Identificación y fidelización de afiliados en empresas sin ánimo de lucro: comunicación y rendición de cuentas
Identificação, lealdade dos membros em organizacôes sem fins lucrativos: comunicação e prestação de contas
By: 1María Alejandra Osorio Arias; 2Zuray Melgarejo Molina
; 3 Katrin Simon Elorz
2PhD in Flexible Business Management Systems, Universidad Pública de Navarra, Spain. Associate Professor at the Faculty of Economic Sciences, Universidad Nacional de Colombia, Bogotá campus, ORCID: 0000-0001-6651-6964. zamelgarejomo@unal.edu.co. Bogotá - Colombia.
3 PhD in Business Management, Universidad Pública de Navarra, Spain. Full Professor at the Universidad Pública de Navarra. ORCID: 0000-0001-9144-1669. katrin@unavarra.es. Pamplona - Spain.
Received: April 18, 2024 Approved: November 12 , 2024
DOI: https://doi.org/10.22267/rtend.252601.266
How to cite this article: Osorio, M., Melgarejo, Z. & Simon, K. (2025). Organizational identification and member retention in nonprofit organizations: communication and accountability. Tendencias, 26(1), 89-114. https://doi.org/10.22267/rtend.252601.266
Abstract
Keywords: stakeholder; communication; nonprofit organization; accountability; social responsibility.
JEL: L30; L31; M14; M40; M41.
Resumen
Palabras clave: agente interesado; comunicación; empresa sin ánimo de lucro; rendición de cuentas; responsabilidad social.
JEL: L30; L31; M14; M40; M41.
Resumo
Palavras-chave: comunicação; empresa sem fins lucrativos; parte interessada; prestação de contas; responsabilidade social.
JEL: L30; L31; M14; M40; M41.
Introduction
Economic associations in Colombia, classified as Nonprofit Organizations (NPOs), are associations that aim to promote the welfare of their members and the community (Gaitán, 2014, p. 11). This study focuses on the Asociación Colombiana de las Micro, Pequeñas y Medianas Empresas [Colombian Association of Micro, Small, and Medium Enterprises] (ACOPI), which is "a national nonprofit trade confederation, with sovereignty over its regional branches, and business associations formed according to Colombian civil law" (ACOPI, 2017; Pallares, 2003).
The literature discusses NPOs' accountability in developed countries, including their responsibility to various stakeholder groups, the variety of organizations involved, and the challenges in management within complex contexts (Pesci et al., 2020, p. 5). However, underexplored topics include stakeholders' perceptions of NPOs' social reports and the management of relationships with them (Costa & da Silva, 2018, pp. 38-39; Hu et al., 2020, p. 182; Lai & Fu, 2020, pp. 2–3).
Accountability and Communication Factors with Stakeholders
NPOs have gained importance in the social, political, and economic spheres (Carvalho et al., 2019, p. 129; France & Regmi, 2019, p. 27), forming part of the third sector, where volunteer groups address social needs that the state and the private sector do not cover (Corral et al., 2019).
Accountability in NPOs is linked to power, responsibility, ethics, and commitment (Egholm et al., 2020, p. 11). It involves the objective responsibility of individuals and organizations for their performance (Mitchell et al., 1997; Paul, 1991, p. 2), applying compliance standards and formal evaluations (Kearns, 1994, p. 186), although there are limitations for NPOs in their communication with donors and other stakeholder groups (Kearns, 1994, p. 185). It is understood as a social relationship in which the organization justifies its management and is assessed for its suitability and legitimacy (Bovens, 2007, pp. 450–451), through a continuous process with both accounting and narrative elements (Pesci et al., 2020, p. 20).
The analysis of accountability includes external performance standards and proactive or reactive internal responses, affecting both internal and external communication (Kearns, 1994, p. 186; Solana et al., 2017, p. 177). This is essential for maintaining public trust and justifying the fulfillment of promises, demonstrating solid financial results and responsible practices (Kearns, 1996, p. 40; Vernis et al., 2006, p. 158). As NPOs grow in relevance, greater transparency is demanded to assess the impact of their activities (Costa et al., 2011, p. 473).
The performance of NPOs depends on their ability to maximize social value, legitimacy, and economic efficiency (Costa et al., 2011, p. 473; Sulkowski et al., 2018, p. 226). This requires managing various levels of accountability and prioritizing different stakeholder groups, including the use of social media (Lai & Fu, 2020, p. 3; Liu & Xu, 2019, p. 4919). Accountability strengthens commitment and increases the legitimacy of NPOs by providing transparent information and fostering the participation of stakeholders (Maguregui et al., 2018; Ortega et al., 2020).
Transparency is key to accountability; NPOs are expected to disclose clear information on the use of donations and the impact of their programs, building trust in alignment with the Sustainable Development Goals (SDGs) (Makanga et al., 2024; Ortega et al., 2020). Moreover, involving beneficiaries in decision-making improves accountability and strengthens credibility (Pilon & Brouard, 2023), while the lack of community participation generates a "stakeholder myopia," prioritizing financial actors over beneficiaries.
From the stakeholder theory perspective, the focus is on how to engage and create value for stakeholders, considering an interdependent system (Freeman et al., 2020, p. 217). Internal and external communication manage their needs through diverse messages (Lai & Fu, 2020, p. 3), and with the use of Information and Communication Technologies (ICT), it is conceived as an integrated system or Integrated Marketing Communications (IMC), aligning shared values and improving strategy (Correal et al., 2011, p. 149).
IMC aims to create an attractive and differentiated image, essential for communicating the NPO’s mission and maintaining trust (Maguregui et al., 2018, pp. 67–68). Effective communication reduces ambiguities by sharing information and strategies that facilitate the achievement of objectives (Atouba & Shumate, 2019, p. 305). The IMC theory focuses on how consumers process messages and the willingness of resources to receive them, creating brand value and long-term relationships (Batra & Keller, 2016, p. 123; Seric & Saura, 2012, pp. 66–69). This approach integrates different elements for effective promotional combinations (Kitchen & De Pelsmacker, 2004, p. 30).
The impact of IMC is reflected in brand value; "brand identity contacts" communicate the message, while "brand value contacts" strengthen favorable relationships (Madhavaram et al., 2005, pp. 72–73). Keller (1993) defines brand value as the impact of brand knowledge on consumer response to marketing (Tae et al., 2020). In NPOs, strategic communication with donors ensures financial sustainability, although many lack effective strategies (Wiggill, 2011). Dialogic or two-way communication is key to generating trust and strengthening relationships (Kent & Taylor, 1998; Wang & Yang, 2020).
The strategic use of social media allows NPOs to mobilize communities and attract followers, facilitating accountability and improving their communication strategy (Campbell & Lambright, 2020; Lai & Fu, 2020; Liu & Xu, 2019, p. 4922). Effective communication strengthens their attractive image and mission, using everything from face-to-face conversations to digital media and social networks (Kwak, 2014; Maguregui et al., 2018, pp. 67–68).
Stakeholder Identification and Member Retention
Organizational Identification (OI) is rooted in organizational science and is crucial for understanding organizational dynamics in a global and interconnected context (Ashforth et al., 2008; Koçoğlu et al., 2020). Organizational identity, understood as the process of self-referencing that includes cognitive, emotional, and behavioral aspects, defines strategic direction and long-term sustainability. When communicated clearly, this identity generates emotional commitment that aligns with organizational values (Ashforth et al., 2008, p. 327; Elfving & Howard, 2018, p. 570; Ellemers & Rink, 2005).
Payne et al. (2018) highlight four essential aspects of OI: consubstantiality, perspective-taking, behavioral attachment, and emotional attachment. These elements foster cohesion and commitment, influencing how individuals integrate into the organization (Ashforth et al., 2008). OI promotes cooperation, motivation, and coordinated actions, contributing to organizational commitment, defined as a positive attitude towards the organization that increases job satisfaction (Koçoğlu et al., 2020).
It is essential to distinguish between organizational identity and identification to understand their impact on employees. Elfving & Howard (2018) emphasize the importance of communication in consolidating organizational identity, with tools such as storytelling, which help build a strong internal and external brand. Organizations must implement effective communication strategies to promote a solid and flexible identity that can generate identification and retention among their members and stakeholders.
Organizational identification is critical for strengthening connections and commitment by aligning stakeholders with the organization’s values and objectives, fostering loyalty, ethical behavior, and good performance. A recent study highlights the role of leadership in this process, emphasizing that leaders focused on communication and careful management increase resilience and commitment during times of change (Aitken & Von Treuer, 2021). However, strong identification can lead to unethical behaviors if employees prioritize organizational goals over ethical considerations (Tufan & Wendt, 2020).
In conclusion, organizational identification involves not only employees but also communities and customers, fostering a collaborative and responsible organizational culture.
Methodology
The methodology used in this study is a descriptive and interpretive qualitative approach, focused on the case of ACOPI Bogotá – Cundinamarca. The validity of qualitative research is relevant for identifying details and perceptions of specific problems. This discussion on qualitative validity has been addressed in various studies (Moral, 2006), justifying its suitability for handling interpretation, reflexivity, and result control.
Although most research on communication in NPOs has been quantitative, this study provides a qualitative perspective that, through the observation of subjective aspects, highlights relevant characteristics of the phenomena being analyzed. This approach facilitates the creation of categories and nodes that provide meaning to the research objective (Vargas, 2011). For content analysis, or semantic analysis (Salloum et al., 2020), communication categories identified in the literature were used, such as Wiggill’s (2011) study on strategic communication practices, and Lovejoy et al.'s (2012) model that analyzes communication in terms of information, action, and community.
The instrument was applied to a sample of participants affiliated with ACOPI, familiar with the organization, and willing to provide information. Validity criteria such as source triangulation were employed to enrich the analysis and strengthen the robustness of the findings. Additionally, credibility was sought by verifying data with participants, ensuring that the interpretations reflected their experiences and perceptions.
The Atlas.ti software was used to analyze the data, divided into two coding cycles. In the first cycle, 34 codes were identified from semi-structured interviews with 10 board members and 2 staff members (Table 1). In the second cycle, the codes were grouped into networks of six general categories, and relationships were analyzed through co-occurrences, reflecting the emerging relationships in the data.
Table 1
Categories of Analysis and Codes
Category |
Codes |
Strategic Communication |
|
Internal Communication |
|
|
|
|
|
External Communication |
|
|
|
Identity |
|
|
|
Organizational Identification |
|
Retention |
|
|
|
|
Source: Prepared by the authors.
Results
Types of Communication with Stakeholders
Strategic Communication
Based on 27 quotes extracted from interviews, it is evident that the organization has developed an effective communication strategy. Strong connections with the organization's objectives are highlighted, as illustrated by statements such as "these are slogans that guide the communication strategy of the association" (Y. Pardo, personal communication, August 23, 2021), and "there is absolute clarity... that all efforts of ACOPI Bogotá-Cundinamarca are directed towards defending the national industry and, therefore, decent employment" (R. Rueda, personal communication, August 21, 2021). These testimonies highlight positive results, as expressed in "without a doubt, that has been the most outstanding achievement we've had" (H. Niño, personal communication, August 22, 2021).
Regarding the coherence between internal and external communication, a direct relationship with strategic communication is observed. However, there is no complete clarity regarding the different levels of communication directed at each target group. Some interview participants stated that "ACOPI Bogotá-Cundinamarca's discourse is uniform for all" (Y. Pardo, personal communication, August 23, 2021) and "I think we have tried to faithfully follow what we consider best for the association" (H. Niño, personal communication, August 22, 2021).
As for the connection between communication objectives and the organization's strategic goals, all interviewees agree on their close relationship, stating that the aim is to "defend the national industry and, therefore, decent employment" (R. Rueda, personal communication, August 21, 2021). This aligns with the objectives outlined, from planning to the implementation of Integrated Marketing Communications (IMC) (Low, 2000).
The literature emphasizes the importance of dialogic communication for establishing effective relationships between individuals within the organization. However, most NPOs analyzed in the reviewed studies seem to not fully leverage this high-potential communicative approach (Lam & Nie, 2020; Wiggill, 2014). Figure 1 reflects what was expressed in the interviews conducted within the association. Some instances and spaces where dialogic communication is implemented were mentioned, allowing for discussions among affiliates on various topics during Assembly meetings. Furthermore, the administration’s personalized contact with business owners and the organization of customized meetings with external stakeholders to achieve greater representativeness were highlighted (R. Rueda, personal communication, August 21, 2021). Platforms like WhatsApp are used to streamline communication, and during meetings, analyses are made on relevant issues at both the general and sectoral levels, generating statements of various kinds.
There is a close connection between strategic communication and factors such as governance, as directives are received from governing bodies, as well as its relationship with the fulfillment of the organizational mission. This is reflected in the continuous effort to ensure that all messages, both internal and external, are aligned with the organization’s objectives. Additionally, three key elements in strategic communication are identified: the use of multiple interactive channels (such as ICT), direct contact activities, and mass media presence.
Figure 1
Co-occurrences of Strategic Communication
Source: Prepared by the authors using Atlas.ti based on interviews.
Internal Communication
In the category of internal communication within the organization, focused on managing the relationship with affiliates, the fulfillment of the mission is highlighted as the most relevant variable, supported by 33 citations extracted from the interviews. This variable is recognized in the literature as a crucial element of accountability, aimed at maintaining trust and influencing stakeholders' perceptions of the NPO's performance (Kearns, 1996; Vernis et al., 2006), which in turn fosters the retention of affiliates within the organization.
Internal communication, integrated into strategic communication, plays a key role in the retention of affiliates in the association, facilitating the incorporation of new members. According to the interviews, the interviewees argue that the association acts as "an umbrella that can protect them and where there is a convergence of issues" (H. Niño, personal communication, August 22, 2021), or because "they believe that what the association does meets their expectations regarding their interest in affiliating" (C. Martínez, personal communication, August 23, 2021).
Concerning governance, it is noted that "the board, composed mainly of entrepreneurs, has made an effort to turn the board of directors into a body that listens to the different needs of industrialists" (J. Amado, personal communication, August 21, 2021), and another interviewee adds that the spokespeople "have interpreted the perspectives of the Board of Directors and the affiliates in the city very well" (N. Fonseca, personal communication, August 23, 2021).
The messages transmitted through the different communication channels of the association do not appear to be differentiated consciously. However, the interviewees highlighted the existence of different types of messages, as shown in Figure 2. Primarily, informational and descriptive messages were identified, such as statements on various related issues, training sessions, general information, and updates on regulations, among others. Secondly, calls to action were emphasized, including participation in large-scale events, sectoral meetings, assemblies, or board meetings, as well as participation in forums and discussions of sectoral or business interests and collaborations with other associations. Lastly, messages aimed at community building were recognized and expressed through participation in assemblies to strengthen the association.
Figure 2
Word Tree of Message Type Co-occurrences
Source: Prepared by the authors using Atlas.ti based on interviews.
External Communication
Figure 3
Co-occurrences of External Communication
Source: Prepared by the authors using Atlas.ti based on interviews.
In the context of the association, it is observed that brand attributes play a fundamental role in generating organizational identity and identification, supported by a total of 22 quotes extracted. The most prominent attributes include trust, linked to the clarity of the concepts conveyed; financial and political independence, promoted as an essential principle of identity; seriousness, understood as an indicator of reliability; defense of the national industry, which is consistently reflected in communications; the role of spokespeople, who represent the interests of micro, small, and medium enterprises (MSMEs) and generate trust; as well as the association's track record, experience, and institutional recognition, which demonstrate competence and credibility.
Regarding the role of representatives in brand positioning, interviewees agree that they are aligned with and consistently represent the institution’s position. Their conceptual clarity and ability to generate trust among various sectors and stakeholder groups stand out. Additionally, it is mentioned that they convey the brand’s attributes through their interventions and activities.
Contact activities, with a total of 23 quotes extracted, are crucial in external communication due to their close connection with dialogical communication. The importance of affiliate assembly meetings is emphasized as a key setting to inform members about the association's activities and discuss plans approved by affiliates. Sector meetings and relevant events that encourage participation from business owners and governmental and international entities are also cited.
In summary, the association has implemented an effective communication strategy that manages its relationships with affiliates. This is reflected in a notable presence in the media. The arrival of new corporate governance has optimized the organization’s performance, especially regarding brand positioning, relationships with affiliates, fulfillment of the mission and organizational goals, the active role of spokespeople, and the effective use of both traditional and interactive communication channels.
Organizational Identity
Regarding the first variable, central or causal identity, it refers to the core values and principles that define the essence of the organization and are fundamental to its members. In this regard, interviewees’ responses highlight the commitment to defending national production and, therefore, the employment generated by businesses, especially MSMEs. Principles such as independence and financial autonomy of the organization are mentioned, values that have been promoted by the current Board of Directors and are shared by all members. The honesty and transparency of the association are emphasized, focusing on the general interest as expressed by the interviewees.
Concerning the variable of collective identity, elements are identified that reflect the long-term vision of the organization, especially from its governing bodies. According to the interviewees, the vision is to establish itself as a trade association that represents the interests of national entrepreneurs, the manufacturing sector, and SMEs. Additionally, the association aspires to be recognized and valued within the business associations’ sphere for its independence and impartiality. These aspirations reflect a coherent communication strategy and a strong union between the central and collective identity, with almost no perceivable differentiation.
Organizational Identification
Social identities are the result of the combination of different affiliations and connections that people have. When the process of identification with an organization begins, membership is seen as an extension of personal identity. For this reason, the communication factors employed in identification processes are crucial for achieving organizational objectives and improving performance (Payne et al., 2018). The analysis of co-occurrences within the organizational identification category, shown in Figure 4, reveals a close relationship with identity, which favors retention. This analysis includes variables such as affective attachment, behavioral attachment, and consubstantiality.
Figure 4
Co-occurrences of Organizational Identification
Source: Prepared by the authors using Atlas.ti based on interviews.
Figure 5
Word tree of positive sentiments toward the organization
Source: Prepared by the authors using Atlas.ti based on interviews.
Member Retention
In the member retention category, which is crucial for recruiting volunteers or group members with shared objectives, particularly in social economy organizations (NPOs) facing the pressure of increasing demand (Warburton et al., 2018), it is related to the variable of willingness to stay. This is evidenced by the voluntary donation of time and/or resources to the organization.
Willingness to stay arises from affective attachment and consubstantiality. The interviewees feel ownership over the organization’s attributes, generating positive emotions that lead to a desire to continue participating and contributing to maintaining the operation of the NPO. Additionally, willingness to stay is influenced by the variable of change, reflecting that strategic changes in the association maintain the trust bond with entrepreneurs.
Regarding the value proposition, which encompasses the use of free time and the organizational promise of reward and recognition, the value of active citizenship provided by ACOPI stands out. ACOPI offers a voice with an impact on society and representation in various instances. This ability to express itself firmly and visibly strengthens the affiliation bond with the association.
In conclusion, as shown in Figure 6, the organization's central or causal identity, determined by its mission as an NPO, is established as a strength. The brand attributes and organizational identification are closely linked, favoring member retention through consubstantiality and affective attachment. On the other hand, behavioral attachment reinforces the psychological contract between the organization and its members.
Figure 6
Interactions among the most relevant categories and codes
Source: Prepared by the authors using Atlas.ti based on interviews.
Conclusions
One of the main contributions of this work is recognizing communication as a key factor in understanding the narrative aspects of the social relationship in the accountability process (Atouba & Shumate, 2019). Communication directed at stakeholders is essential for managing and satisfying the interests of both parties, facilitated through articulated messages and channels from strategic communication, which seeks to build solid relationships and foster organizational identity (Lai & Fu, 2020).
Among the key communication factors for accountability, the interaction between strategic communication and various tools, both internal and external, stands out. In the internal sphere, elements such as mission fulfillment, organizational performance, the use of interactive media, and contact activities are examined. Externally, factors such as media presence, the visibility of spokespeople, and brand recognition are considered, all of which are closely linked to the evaluation of commitment, trust, and public image.
From the analysis of the information, it has been evident that the messages with the widest diffusion are those of a descriptive and informative nature. It remains a pending task for the NPO to improve the reach and diffusion of other relevant messages related to the topics discussed in the General Assembly through different channels. The use of 2.0 tools aligns with the general trend of facilitating the communication process, as noted by Campbell & Lambright (2020).
It is reaffirmed that mission fulfillment and efforts directed toward this goal contribute to better organizational performance and the maintenance of trustful relationships. In terms of identity, its influence on the strategic direction of the NPO and its ability to ensure long-term sustainability is evident, highlighting the importance of the central or causal identity in relation to the organization's mission and its emotional connection with members, as well as the role of collective identity in the participatory activities called by the NPO (Carvalho et al., 2019; Egholm et al., 2020; Kearns, 1996; Lai & Fu, 2020; Pesci et al., 2020).
Organizational identification is a concept that links identity with retention, through behavioral attachment associated with collective identity, consubstantiality, and affective attachment. These elements promote the willingness to remain in the organization, which has led to both qualitative and quantitative growth in the number of members during the analyzed period. Organizational identity has been deeply studied in third-sector organizations and non-profit entities, being one of the essential pillars for transmitting organizational values; research such as that by Maguregui et al. (2018) supports this assertion.
This study has both practical and methodological implications. Practically, the literature review can serve as a reference for future research, and some findings are relevant for the day-to-day management of NPOs, especially in the area of communication. As for methodological implications, it is noteworthy that most similar studies are based on quantitative approaches, while this work contributes to future research from a qualitative perspective, exploring and analyzing stakeholders' perceptions on communication aspects of accountability.
Ethical Considerations
Conflict of Interest
Author Contribution Statement
María Alejandra Osorio Arias: Data curation, Formal analysis, Investigation, Writing - Original draft.
Zuray Melgarejo Molina: Conceptualization, Methodology, Writing: Review and editing, Supervision.
Katrin Simon Elorz: Validation, Supervision, and Visualization.
Funding Source
References