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The Determinant of Nonprofit External and Internal Effectiveness: The Role of Knowledge Sharing, Collaborative Culture, and Beneficiary Participation

Determining the factors that contribute to nonprofit effectiveness is a problematic and puzzling task. In that respect, utilizing the intellectual capital (IC) concept, this paper proposes an analysis of knowledge sharing, collaborative culture, and beneficiary participation as determinants of nonprofit effectiveness. Drawn from quantitative research strategy, a cross-sectional survey and a structured questionnaire have been employed. The final valid data consist of 271 participants from Malaysian nonprofits located in the Klang Valley area, Malaysia. The main analysis used structural equation modeling (SEM). The findings revealed that knowledge sharing and beneficiary participation significantly predict both external and internal effectiveness. However, collaborative culture fails to act as a predictor of either nonprofit external or internal effectiveness.