Improving nonprofit succession management for leadership continuity: A shared leadership approach

AbstractThe topic of nonprofit succession management has gained increasing research attention in recent years. However, the organizational implementation rate of succession management is often low – and even where present, may be mere “lip service.” Previous studies in the field mostly focus on the role of boards or executive directors in succession management. Grounded in shared leadership theory, this study takes a broader perspective, and stresses the shared responsibilities among boards, executive directors/division executives, and human resource (HR) professionals within the succession management process. As such, the study's framework comprises three components: shared leadership, the succession management process, and nonprofit leadership continuity as an outcome variable. The results of a large online survey in Germany (N = 1020) show that only 12.3% of responding nonprofit organizations in Germany practice tripartite shared leadership in succession management. However, applying partial least squares analysis indicates, for example, a positive relationship of shared leadership behavior among boards, executive directors/division executives, and HR professionals with the likelihood of a systematic succession management process, as well as nonprofit leadership continuity. Reflecting on our findings and current threats to nonprofits, such as COVID‐19, we conclude by offering practical implications for nonprofit decision‐makers and for academia. Among other things, we argue that nonprofit practice should push for more (tripartite) shared leadership to improve succession management and leadership continuity.