ABSTRACT
This study examines customer performance measurement practices in not-for-profits (NFPs) attempting to generate commercial sources of revenue through earned income activities. Meanwhile profit-oriented organizations increasingly participate and compete in sectors traditionally dominated by NFPs. This has led many NFPs to sell services or goods through 'earned income' activities that compete with for-profit businesses in attempting to generate commercial sources of revenue. Building and managing relational capital is therefore critical for NFPs. In particular, identifying those customers of earned income activities that represent the best avenues to financial sustainability, prioritizing these, and managing them effectively are important activities if entrepreneurial NFPs are to be successful in enhancing their financial sustainability. The study finds that measurement of value provided to customers positively and directly contributes to performance in terms of customer impact from earned income activities and the achievement of social mission, while also having indirect benefits on financial sustainability through these non-financial performance effects.
