A sustainable operations management model in a non-profit organisation

Abstract

The sustainability of a non-profit organisation (NPO) in the South African education and research sector must be improved. Previously they had significant impact, but became under severe stress especially during COVID-19. This is an instance of NPOs in general whose sustainability is at risk. Although NPOs can improve their sustainability through operations management, the implementation of sustainable operations management requires further investigation. They can apply various models to improve the implementation of sustainable operations management, but a gap remains to develop such models.

The purpose of this study is to develop an appropriate sustainable operations management model (SOMM) in the specific NPO. By following an action design research approach, the purpose of the study simultaneously is to develop a theory of how appropriate SOMMs can be developed in other NPOs. Most applications of action design research however involve information systems and technology. This study applies a less technologically orientated approach based on design research in education. Starting from a problem formulation phase, the actual problem is identified, conceptualised, and formulated as a case study that represents a class of research problems. Concepts are analysed through a literature review, and long-term commitment is obtained from the NPO. A building, intervention and evaluation phase starts with the contextualisation of a SOMM in the participating NPO, a research procedure is developed to address the actual problem, an interpretive framework and design ecology are developed to address the class of research problems, and effectiveness criteria are established. A SOMM is then iteratively developed through building, intervention and evaluation cycles until it is sufficiently refined. A reflection phase is executed in parallel with the previous two phases to capture the learning that occurs. Lastly, a formalisation phase addresses the reflexivity of the researcher and a design theory is formulated of how appropriate SOMMs can be developed in other NPOs.

A practical contribution is made towards a SOMM in the NPO based on a definition of a model as a meta-theoretical framework to develop understanding, facilitate communication, propose improvements and to surface underlying assumptions. Sustainable operations management is defined as the management of human, natural, physical, financial and social capital and processes involved to satisfy self-defined needs and build resilience over the long term. The design starts by evaluating the current sustainability of the NPO, applies an integrated organisational perspective of a SOMM, regards sustainable operations management as an organised complex problem, and implements discordant pluralism. This entails organisational models for sustainability and systems thinking approaches namely a biomatrix entity systems perspective, viable system modelling, system dynamics, soft systems methodology, the Cynefin framework, and dynamic equilibrium modelling. The NPO confirms that the SOMM is effective in providing guidance to address their self-defined needs. These needs evolve through the development of the SOMM due to mutual influences between the model and the NPO. This ill-defined problem is addressed by changing the perceptions of the NPO to satisfy their needs, identify other needs, and to build resilience over the long term. The SOMM fosters and reinforces commitment to multiple, competing strategies by addressing paradox so that the NPO becomes more fluid, enhances their reflexive self-regulation through supportive capabilities, and becomes more sustainable.

Design principles for the class of SOMMs in NPOs are based on the strategic selection of the case study, the interpretive framework, and the design ecology. A theoretical contribution is made towards sustainable operations management in NPOs in terms of key focus areas identified through content analysis of literature, and towards sustainable operations management in general with reference to the increasing number of hybrid organisations. The study also contributes to the theory of operations management modelling through the development of a research procedure to develop such a model. Furthermore, a contribution is made to a transformative research agenda of sustainability science in a design research mode. The study emphasises that enhanced sustainability does not imply predictability or a homeostatic balance to be achieved and maintained, but continuous tensions that must be creatively addressed. A less technologically orientated approach to action design research is proposed, and future research opportunities are identified.