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Article
Publication date: 28 October 2002

Rosemarie Emanuele and Walter O. Simmons

Previous research has found that nonprofit organizations pay lower wages than do other organizations. This has been attributed to altruism on the part of workers who are willing…

187

Abstract

Previous research has found that nonprofit organizations pay lower wages than do other organizations. This has been attributed to altruism on the part of workers who are willing to donate some of the value of their time to organizations that support causes in which they believe. This paper extends that analysis to the cost of fringe benefits. Do nonprofit organizations spend less on fringe benefits than do other organizations? Utilizing a data set containing information on wages and fringe benefits in the nonprofit sector we estimate a standard wage equation to test for such a relationship. We find that not only are nonprofit organizations spending less on fringe benefits than are other organizations, but that they are spending significantly less than would be predicted by the previous research on nonprofit wage differentials.

Details

American Journal of Business, vol. 17 no. 2
Type: Research Article
ISSN: 1935-5181

Keywords

Book part
Publication date: 19 July 2014

Sonia Moi, Fabio Monteduro and Luca Gnan

Recent literature on nonprofit boards of directors has extensively investigated the composition, role, responsibilities, and characteristics of boards. Given the growing number of…

Abstract

Purpose

Recent literature on nonprofit boards of directors has extensively investigated the composition, role, responsibilities, and characteristics of boards. Given the growing number of studies on nonprofit boards, which added new impulse to the debate on the role and characteristics of these players, it is time to analyze the state of the art and systematize the current knowledge. On the other hand, despite the presence of some literature reviews, a research comparing the debate among the nonprofit, private, and public sectors is still lacking. Using Gabrielsson and Huse’s (2004) framework, we wanted to identify factors that can influence research on nonprofit boards and compare our results with existing studies on private and public sector.

Methodology/Approach

We conduct a systematic literature review, selecting empirical articles published in international scientific journals from 1992 to 2012.

Findings

We found similarities and differences in relation to research on boards among sectors. As a common result, we found that evolutionary studies still remains a neglected area in all of three realms. Finally, whereas input–output studies prevail in the private sector and contingency studies prevail in the public sector, behavioral studies prevail in the nonprofit sector, demonstrating, also, that the sector itself can make a difference in the board’s research.

Research Limitations/Implications

This literature review provides some suggestion for further research on boards for all of three sectors. For example, we suggest complementing research on boards on all three sectors, especially in relation to evolutionary studies.

Originality/Value of Paper

This paper fills the need to clarify the status of research on nonprofit boards, in order to address scholars in the understanding of the phenomenon.

Details

Mechanisms, Roles and Consequences of Governance: Emerging Issues
Type: Book
ISBN: 978-1-78350-706-1

Keywords

Article
Publication date: 8 July 2014

Young-joo Lee

The purpose of this paper is to examine the factors that affect a person's choice to work in a specific sector to understand the overrepresentation of women in the nonprofit sector

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Abstract

Purpose

The purpose of this paper is to examine the factors that affect a person's choice to work in a specific sector to understand the overrepresentation of women in the nonprofit sector in the USA.

Design/methodology/approach

This study views a sector choice of prime-age salaried workers as a three-way choice among for-profit, nonprofit, and public sectors. One's choice of employment sector in this study depends on extrinsic and intrinsic motivations, and is also shaped by structural factors. These benefits, in turn, tend to be determined by individual characteristics. Consequently, this study estimated the endogenous switching regression of earnings and sector choice.

Findings

Results from 2003 to 2007 Current Population Survey (CPS) September supplement data indicate that the so-called “feminine” industries are concentrated in the nonprofit sector, and this gendered industry structure attributes to women's overrepresentation in the sector. The results also suggest that women with more education and experience may choose nonprofit jobs over jobs in the other sector while nonprofit employment is generally associated with negative wage differentials.

Research limitations/implications

This study does not model employers’ behaviors while gender segregation and discriminatory hiring practices may have contributed to women's overrepresentation in the nonprofit sector due to the lack of employer-side information in CPS. Consequently, the estimation of sector choice without employer information is likely to suffer from an endogeneity problem.

Practical implications

This study highlights the factors affecting the concentration of women in the nonprofit sector. Nonprofit organizations may use the information to better understand their employees.

Social implications

The findings suggest that women's sector choice is largely embedded in the industry structure of the nonprofit sector.

Originality/value

This study examines a sector choice of prime-age salaried workers as a three way choice, instead of a binary choice, among for-profit, nonprofit, and public sectors, which reflects the reality better. Further, this study contributes to the literature on nonprofit employment by testing the impact of nonprofit status on an individual's earnings. Lastly, this study contribute to understanding women's overrepresentation in the nonprofit sector by examining both the structural and utilitarian aspects of sector choice.

Details

International Journal of Social Economics, vol. 41 no. 7
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 15 June 2020

Asya Cooley

This research paper comparatively reviews online accountability practices in public, private and nonprofit organizations, using the hospital industry as a case of analysis.

1043

Abstract

Purpose

This research paper comparatively reviews online accountability practices in public, private and nonprofit organizations, using the hospital industry as a case of analysis.

Design/methodology/approach

The authors conducted a quantitative content analysis of 240 US hospital websites, sampled from the 2016 American Hospital Association (AHA) database. Online Accountability Practices (OAP) instrument was utilized, and it included five dimensions as follows: accessibility, engagement, performance, governance and mission.

Findings

There were statistically significant differences in online accountability practices among the three sectors. Nonprofit organizations were leading the way in their overall online accountability practices. They were more likely to score higher on engagement, performance and mission dimensions. We explain this finding through the prism of multiple accountabilities, guided by the stakeholder theory. Private organizations had the lowest scores on every online accountability dimension, except for accessibility. Consistent with previous literature, private organizations were more likely to make information accessible in the online sphere, but not necessarily meaningful or reliable for evaluating organizational performance. Public organizations had the strongest scores within the governance dimension, placing importance on disclosing organizational leadership and sharing information on their governance structures.

Research limitations/implications

This project contributes to theory building on accountability in the online environment. It argues that the distinction between two forms of accountability (functional and holistic) is applicable in the online environment, while accessibility and performance dimensions of online accountability closely align with the functional (hierarchical) form of accountability, and a more holistic approach to accountability includes dimensions like engagement, governance and mission. In addition, this project is the first of its kind to apply the stakeholder theory to accountability practices in three sectors of the economy and how the stakeholder theory provides guidance as a basis of understanding the forms of accountability (functional and holistic) that are most likely aligned with organizations in three sectors of the economy.

Practical implications

The results of this study point to a number of implications for hospital patients, families, hospital administration, healthcare professionals and policymakers. These implications can be broadly divided into two groups as follows: policy implications and management implications. Policy implications pertain to the national dialog and interorganizational deliberations of sector-wide policy to enrich accountability practices; while management implications are concerned with local, intraorganizational discussions among administrators and organizational leaders on formulating specific strategies and tactics.

Originality/value

This research paper contributes to empirical studies on organizational accountability in the online environment. It enriches our understanding of how organizations in different sectors present themselves to the public.

Details

Accounting, Auditing & Accountability Journal, vol. 33 no. 6
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 3 February 2012

Rein De Cooman and Roland Pepermans

This paper aims to use the signaling theory and the person‐organization fit framework as a rationale to study value‐related information prospective applicants receive from…

4042

Abstract

Purpose

This paper aims to use the signaling theory and the person‐organization fit framework as a rationale to study value‐related information prospective applicants receive from employers through the communication in job ads.

Design/methodology/approach

The authors analyzed the content of 1,768 job advertisements published in two national and two regional Dutch‐speaking magazines in Belgium. Four independent judges coded all information in the offer section and categorized it into five content categories adopted from Lyons and colleagues. Since important sectoral distinctions exist in terms of structural‐operational as well as value‐related characteristics, this study examines how profit and nonprofit organizations portray themselves in the offer section of the job advertisements they send out.

Findings

Generally inconsistent with the authors' assumptions, the results show that intrinsic and prestige values are more intensively reported in job ads from the profit sector, whereas altruistic and extrinsic values are brought up more in job ads from the nonprofit sector. However, because nonprofit organizations print smaller, often non‐colored ads in the national language, additional analyses controlling for these factors confirmed only one of the sectoral differences. Nonprofit organizations seem to compensate for values that are obvious in their sector (i.e. altruistic and intrinsic) by more intensively emphasizing extrinsic values (e.g. insurance and fringe benefits) compared to profit organizations.

Originality/value

Only part of the information provided in the earliest phase of the recruitment process reflects the values one would expect based on organizational theory and empirical evidence. This, obviously, engenders an important threat to the establishment of person‐organization fit.

Details

Personnel Review, vol. 41 no. 2
Type: Research Article
ISSN: 0048-3486

Keywords

Book part
Publication date: 16 November 2009

Karl Henrik Sivesind and Per Selle

Social origins theory proposes that countries cluster around different models according to how public welfare spending affects nonprofit sector scale (Anheier & Salamon, 2006;…

Abstract

Social origins theory proposes that countries cluster around different models according to how public welfare spending affects nonprofit sector scale (Anheier & Salamon, 2006; Salamon & Anheier, 1998). This article confronts these assumptions about a liberal, corporatist, and social democratic model with results from a comparative analysis of highly industrialized countries with extensive welfare arrangements. We focus on nonprofit sector employment in relation to total employment in the welfare field, including education and research, health, and social services. Explanatory factors are public welfare spending, share of income from donations, and religious homogeneity. Qualitative Comparative Analysis (QCA) (Ragin, 2000) is applied to sort countries in types. The results show that the consequences of public sector welfare spending on nonprofit welfare employment vary depending on other social conditions. In liberal countries, low public sector welfare spending results in a small nonprofit share of employment. The preconditions are low religious homogeneity and large shares of nonprofit income from donations. In other Western European countries, the size of public sector welfare spending is inversely proportional with the size of the nonprofit share of employment, depending on religious homogeneity. The Nordic countries have the highest religious homogeneity, and largest public welfare costs, and accordingly, the smallest share of nonprofit welfare services. However, a similar “crowding out” pattern can be found in the presumably corporatist countries such as France, Austria, and also to some extent in Germany and Italy. In the other end of the line, we find the Netherlands, which is the clearest example of the presumed corporatist pattern in this sample. Religious homogeneity comes into play in both the liberal and the Western European causal constellation in accordance with Weisbrod's theory of government failure/market failure (Weisbrod, 1977), which indicates that this factor is more important for nonprofit welfare regimes than previously thought.

Details

Civil Society in Comparative Perspective
Type: Book
ISBN: 978-1-84950-608-3

Article
Publication date: 19 June 2009

Claire Moxham

Nonprofit performance measurement is receiving increasing academic and practitioner attention, but the design of nonprofit measurement systems has received limited consideration…

7836

Abstract

Purpose

Nonprofit performance measurement is receiving increasing academic and practitioner attention, but the design of nonprofit measurement systems has received limited consideration. This is in contrast to the well‐established body of knowledge that focuses on performance measurement in private and public sector organisations. The purpose of this paper is to ascertain whether this body of knowledge can be used to inform the design of nonprofit performance measurement systems.

Design/methodology/approach

A case study approach was taken to examine the performance measurement practices used in six nonprofit organisations and their associated funders and regulators. A total of 24 managers from 18 organisations took part in the study.

Findings

The study found underdeveloped and resource intensive performance measurement systems in the majority of organisations that were examined. The performance measurement literature from the private and public sectors advocates the development of relevant, balanced, integrated, strategic and improvement‐oriented performance measurement systems; concepts that have received limited consideration in the nonprofit literature. This research found that performance measurement system design principles developed for the private and public sectors were applicable to the nonprofit sector.

Research limitations/implications

Whilst a range of stakeholders was included in the research, further work is required to validate the applicability of the findings to the diverse nonprofit sector. Nevertheless, given the dearth of operations management focused research on nonprofit performance measurement systems this study makes a useful contribution.

Practical implications

The study presents empirical evidence of the myriad criteria and processes that are used to measure nonprofit performance. The paper shows that current measurement practice is detracting from the performance of nonprofit organisations.

Originality/value

Despite the perceived uniqueness of the nonprofit sector, this paper shows that learning from the private and public sectors can be used to inform good practice in nonprofits. As relatively little research has been done in this area, the findings make a valuable contribution to the body of knowledge.

Details

International Journal of Operations & Production Management, vol. 29 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 2 February 2015

Jessica Word and Sung Min Park

The purpose of this paper is to examine the factors influencing the decision of managers to work in the nonprofit sector and how these choices are shaped by intrinsic and…

4413

Abstract

Purpose

The purpose of this paper is to examine the factors influencing the decision of managers to work in the nonprofit sector and how these choices are shaped by intrinsic and extrinsic motivations. Additionally, this research examines the impact of job choice motivation on social, community and professional outcomes and the unique characteristics of managers in the nonprofit sector.

Design/methodology/approach

This research employed data from the National Administrative Studies Project (NASP-III) survey, which measured the mid- and upper-level managers working in nonprofit organizations in Illinois and Georgia. The survey measured the manager’s perceptions of various organizational issues, including work motivation, mentoring and communication, career histories, hiring practices, and organizational cultures and structures. The data were then analyzed using a hierarchical regression model.

Findings

The findings of this research support the idea that intrinsic motivation is an important aspect of job choice motivation for individuals in the nonprofit workforce. In addition, the findings suggest other characteristics, including policies that enhance work life balance (WLB), advancement, and job security, are important to understand the job choice motivations of nonprofit managers. This research also found not all types of nonprofit agencies attract similarly motivated individuals, or lead to equivalent community outcomes.

Research limitations/implications

The organizations represented in the NASP III sample included more membership and professional associations than the overall nonprofit sector. This over representation partially limits the generalizability of these findings but it also allows the research to more thoroughly understand this unique subset of organizations that serve predominantly the narrow interests of their members.

Practical implications

This research highlights the advantage nonprofit employers have over other organizations in terms of using intrinsic motivations to attract employees. However, the findings also suggest nonprofit organizations need to focus on human resource (HR) strategies including policies that enhance WLB, advancement, and job security to compete with other employers for talent. Finally, the research also suggests the need to tailor HR strategies to groups of nonprofit employees based upon important employee characteristics such as gender, job type, and prior career experience.

Originality/value

This study extends a well-developed body of knowledge on motivations and selection of career paths to individuals working in the nonprofit sector. It also suggests variations among employees and organizations matter in terms of the type of individuals attracted to particular career path in nonprofits. Additionally, this research suggests future research needs to include more nuanced examinations of the differences which exist among organizations in the nonprofit sector rather than simply focussing upon similarities across the most prevalent types of nonprofit organizations.

Article
Publication date: 1 February 1989

Carroll L. Estes and Linda A. Bergthold

In the mid 1980s, amidst a massive restructuring of U.S. capital and a retrenchment of the welfare state, little attention has been paid to the ill‐defined “nonprofit” or…

Abstract

In the mid 1980s, amidst a massive restructuring of U.S. capital and a retrenchment of the welfare state, little attention has been paid to the ill‐defined “nonprofit” or “voluntary” service sector in the American economy. The Filer Commission on Private Philanthropy and Public Needs characterised it in 1975 in the following way:

Details

International Journal of Sociology and Social Policy, vol. 9 no. 2/3
Type: Research Article
ISSN: 0144-333X

Article
Publication date: 1 March 2008

Emily Barman

Scholarly knowledge of organizational founding in the nonprofit sector has grown not from macro-level analyses but rather from the aggregation of in-depth and focused studies of…

Abstract

Scholarly knowledge of organizational founding in the nonprofit sector has grown not from macro-level analyses but rather from the aggregation of in-depth and focused studies of particular geographical regions or service fields. Employing logistic regression techniques, this paper examines the formation of nonprofits in one key but overlooked site of the voluntary sector: workplace charity. Testing competing theories, the paper analyzes the effect of demand-side, supply-side, and community-level characteristics on the presence of rival federated fundraisers in the largest 123 MSAs in 2000. The results indicate that these nonprofit organizations are formed in large cities with a sizeable and stable nonprofit sector, regardless of ease of access to charitable contributions and the level of available funding.

Details

International Journal of Organization Theory & Behavior, vol. 11 no. 1
Type: Research Article
ISSN: 1093-4537

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