The moderating role of organizational sub-sectors on the relationship between CEO duality and nonprofit performance

Abstract

Although the chief executive officers (CEOs) are the primary figures in nonprofit organizations (NPOs), there is limited literature on the impact of their characteristics and roles on NPOs’ performance, particularly the influence of CEO duality and its outcomes. This study investigates the correlation between CEO duality and NPO performance, with a specific focus on the moderating role of organizational sub-sectors. Organizational sub-sectors in this context refer to two types of NPOs: those operating in multiple sub-sectors and those operating in a single sub-sector. A total of 296 CEOs participated in the survey, resulting in a response rate of 67.51%. Using multiple regression analysis within SPSS, the study demonstrates that CEO duality enhances NPO performance and provides support for the proposed moderating role. Specifically, the study suggests that CEO duality has a more pronounced positive effect on NPOs operating in multiple sub-sectors compared to those with a single sub-sector. These findings are consistent with stewardship theory and hold both theoretical and practical implications for governance policies and strategic decision-making.