Construction of organizational identity claim and understanding in nonprofits: Evidence from Pakistan's voluntary organizations

Abstract There is a substantial research literature on nonprofits identity claim and identity understanding but much less on how these identities are constructed in the first place. This article explores how identity claim and identity understanding are constructed in the nonprofits and reasons for such constructions. Exploratory multiple case study analysis was conducted with two voluntary organizations. The results showed that three factors play a significant role in construction of identity claim; founders, funding, and power of stakeholders. The construction of identity understanding is influenced by the claim and is often in sync until the funding source changes leading to a dissimilar identity understanding. The members, however, showed reluctance to embrace the new identity due to the power of stakeholders and fear of mission drift. The unsynchronized claim and understanding caused confusions among the members as they juggled between adopting the new identity understanding and keeping a dissimilar claim. This confusion hinders the nonprofits growth and they struggle to answer what they want to be in future .