Business tools in nonprofit organizations: a performative story

Purpose The purpose of this paper is to investigate the effects of introducing business tools into nonprofit organizations (NPOs). Exploring the case of an NPO trying to embrace the social enterprise model, this study aims to contribute to a better understanding of the managerialization process affecting third sector organizations. Design/methodology/approach Relying on an in-depth ethnographic immersion conducted at a Brazilian NPO, this paper adopts a performativity lens to analyze the appropriation process of a traditional business tool, the Individual Development Plan (IDP), at the organization. Findings The story of the IDP's appropriation reveals how business tools act as market devices to actualize economic behaviors and representations among NPOs' beneficiaries. Reinforcing the control of managers upon their constituencies, business tools can thus create an unequal balance of power within NPOs. Practical implications Admittedly, this paper relies on one single case study, which imposes strong limitations to generalize empirical findings. Nonetheless, this analysis calls for more caution in the promotion of business tools for the development of social entrepreneurship in third sector organizations. Originality/value Rather than debating the accuracy and efficiency of business tools in NPOs, this paper adopts a performative approach to understand how artifacts change the nature of relationships between managers and beneficiaries within social ventures. Rejecting a normative stance, this paper proposes a micro-level analysis of managerialization, focusing on an organization from an emerging country, Brazil, which is rarely at the core of social entrepreneurship studies.