Extending the use of market orientation: Transforming a charity into a business

Charities play a crucial role within society but are facing growing competition. Adopting a market orientation assists for-profit organisations to improve performance and can potentially also assist charities. This paper examines the under-researched topic of how market orientation can be appropriately introduced into a charity, and the resultant effect upon performance. A charity that introduced market orientation is examined using a discourse transformation framework. Thematic analysis of in-depth interviews of employees identifies how management changed the organisation through use of a three-phase process of new managerialism, professionalism and embedding. Few if any papers have previously examined how management of a charity can successfully implement a market orientation. The paper thus expands our knowledge regarding implementation of market orientation, utilises a discourse transformation framework for examination of market orientation, and provides charity managers with worthwhile information regarding how market orientation can improve performance – for the benefit of society.

► Implementation of market orientation within charities occurs via a three-phase process.
► A discourse transformation framework is useful in examining market orientation implementation.
► Charities can improve performance via introducing market orientation.
► Managers need to be cautious when transforming a charity into a business due to the underlying values of existing employees.