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Policymakers worldwide have proposed a new contract – the ‘social impact bond’ (SIB) – which they claim can allay the underperformance afflicting not-for-profits, by tying the private returns of (social) investors to the success of social programs. We investigate experimentally how SIBs perform in a first-best world, where investors are rational and able to obtain hard information on not-for-profits’ performance. Using a principal-agent multitasking framework, we compare SIBs to inputs-based contracts (IBs) and performance-based contracts (PBs). IBs are based on a piece-rate mechanism, PBs on a non-binding bonus mechanism, and SIBs on a mechanism that, due to the presence of an investor, offers full enforceability. Although SIBs can perfectly enforce good behaviour, they also require the principal (i.e., government) to relinquish control over the agent’s (i.e., not-for-profit’s) payoff to a self-regarding investor, which prevents the principal and agent from being reciprocal. In spite of these drawbacks, in our experiment SIBs outperformed IBs and PBs. We therefore conclude that, at least in our laboratory test-bed, SIBs can allay the underperformance of not-for-profits.

The paper examines aspects of not-for-profit leadership and in particular the importance of values in such leadership.

Drawing on the literature for leadership in charities, not-for-profits and social enterprise, the paper also uses two detailed case studies to illustrate dilemmas and challenges specific to the not-for-profit sector. These examples are the Salvation Army and Emmaus, both of which are found across many countries.

The paper identifies the importance of value sets in not-for-profits – in particular the voluntarist element that especially distinguishes these organisations from those in the private and public sectors. However, it also identifies common ground between some aspects of not-for-profit leadership and those other sectors.

The paper furnishes a composite of literature on leadership reinforced by detailed case studies as well as observations on characteristics that both link and separate leadership in the different sectors.

Not‐for‐profit organizations, sometimes called charities or voluntary organizations, are assumed to be serving their customers well – but are they? A customer segmentation is proposed of beneficiaries, supporters, stakeholders and regulators, each group having intermediaries through which the end customer may be reached. Lays out structural reasons why not‐for‐profits may not value or respect their customers, including excess demand, lack of competition, professional dominance and distance, lack of consumer research, lack of appreciation of supporters (both donors and volunteer service workers), comparatively lower salaries of staff, and argues that the “inter constituency tension” of the different and competing needs of beneficiaries, supporters, stakeholders and regulators plus the production orientation of many not‐for‐profits means that, in practice, customers are not sufficiently valued or respected.

The purpose of this paper is to investigate whether intention to report fraud varies by organization type or fraud type. Employees who self-select into not-for-profits may be inherently different from employees at other organizations.

The authors conduct a 2 × 2 experiment in which (n=107) individuals with a bookkeeping or accounting background respond to a fraud scenario. Analysis of covariance models are used for data analysis.

The authors find evidence that not-for-profit employees are more likely to report fraud and that reporting intention does not differ significantly by fraud type.

Limitations of this study include the simulation of a fraud through a hypothetical incident and the use of online participants.

This study expands the commitment literature by examining the role that commitment plays in the judgment and decision-making process of a whistleblower. Findings suggest affective commitment, which is an employee’s emotional attachment to the organization, and mediate the path between organization type and reporting intention. Affective commitment significantly predicts whistleblowing in not-for-profit organizations but not in for-profit organizations.

This research provides insight into how organization type influences whistleblowing intentions through constructs such as organizational commitment and public service motivation.

The purpose of the paper is to illustrate how marketing intelligence might be improved when an organisation's learning capacity is integrated and incorporated in well‐defined organisational subsystems in a not‐for‐profit context.

First, given that market orientation is primarily concerned with gathering and desseminating marketing intelligence, the paper discusses the theoretical contributions from the learning literature related to interpreting the environment. Second, while many good ideas exist in not‐for‐profit firms, ideas are seldom linked to competencies that must be tracked and developed in the workplace. A more systematic view towards competency creation will increase the unique skills of not‐for‐profits and most likely improve their performance. Third, communities of practice are introduced as a way for not‐for‐profit firms to maximise dramatically the complex relationships that exist between various stakeholders and possible institutional investors. A number of propositions are offered that support the need for communities of practice.

In relation to P1 and P2, the workplace of a not‐for‐profit firm needs to be transformed. Establishing a culture of learning is the first step in making this transformation. Improving and advancing a firm's individual and organisational competencies (P3) suggests that individual and team training – depending on the type of not‐for‐profit activities – is needed. In relation to P4, the authors suggest that a firm's market orientation will be significantly improved by incorporating learning systems that resemble communities of practice.

The propositions for this paper now need to be developed into a number of research questions. This paper has not provided an empirical validation and is limited by the prepositions related to the model. Subsequent testing of the model will greatly enhance its generalised findings.

Actual work practices in not‐for‐profit firms will be substantially improved, if not radically transformed, through a learning organisation culture.

This paper is highly valuable with very little research completed to date on this topic.

This paper aims to focus on governance theories and practice variables in Not-For-Profit Service Organizations. The research answers two questions: what the prevalent governance practices of Not-for-Profit Service Organizations (NPSO) are, and whether there is a crossover among NPSO governance practices and For-Profit-Organization theories in the literature.

A questionnaire to the 285 organizations within the defined parameters obtained a 18 percent response. Data were collected regarding the boards' predominant roles in the organizations' governance activities, the top executives' predominant roles in the organizations' operations and their interrelationship with the boards, and the boards' most common meeting agenda topics.

The findings prove that governance models in NPSO are mostly driven by Agency Theory (52 percent of the sample). Stewardship and Resource Dependence Theories also contribute to existing governance models (28 percent), while some of the organizations have developed Hybrid Models (20 percent) drawing from the various theories.

The limited number of organizations participating in the research does not allow a generalization. However the diversity of organization types and sizes within the scope do provide a panoramic view of the not-for-profit service sector.

Having proved that there is a crossover of governance practices among For-Profit and Not-for Profit Organizations, this research opens the door to the evaluation of many other existing or potential crossovers in governance and other management elements.

This research is novel in its approach to look for similarities rather than differences between For-Profit and Not-for-Profit Organizations. The approach allows both sectors to learn from each other and seek for fresh improvement alternatives.

This paper aims to examine, specifically, how competition, networks (alliances) and both formal and informal institutional forces affect service innovativeness within the not‐for‐profit dominated industry.

Utilizing data from 1,428 acute healthcare hospitals in the USA OLS regression was used to examine the antecedents to service innovativeness.

The results reveal that organizations in large networks (alliances) limit providers' service innovation. Whereas competition increased service innovativeness, regulatory forces (formal institutional pressure) and informal regulatory forces stifled it.

Is regulation good for service innovativeness? The results suggest otherwise. It was found that regulation (formal institutional pressures) limited service innovativeness. Another important practical implication is the finding that large network (alliances) also limited service innovation. Any condition that limits service innovativeness is going to hurt the very people that were meant to be served. While the questions were answered within the context of the acute care hospital industry, the results may be relevant to both for‐profit and not‐for‐profits service providers operating within a competitive environment. Varying informal and formal institutional pressures affect a wide range of both for‐profit and not‐for‐profit service providers.

The research goes further than previous literature's study of antecedents of service innovativeness to examine how external factors influence service providers' innovativeness strategies. It also adds to the literature which examines how marketing strategies can aid not‐for‐profit marketers.

The purpose of this paper is to analyze job-related stress, motivation and satisfaction in higher education institutions, and assesses their implications on health in various industries including higher education. In total, 52 higher education faculty and administrators from institutions in more than 16 countries participated in the study that utilized the organizational surveys, Organizational Effectiveness Inventory® from human synergistics. Subgroup analysis was done to compare faculty and administrators; males to females, private, public, for-profit and not-for-profit institutions.

To assess health implications, 160 respondents employed in seven industries were surveyed using a custom medical/stress questionnaire to collect self-reported data on levels of job-related stress, motivation and satisfaction as well as the presence of several medical conditions, including myocardial infarction, stroke, angina pectoris/coronary heart disease, hypertension, gastro-esophageal reflux disease and diabetes mellitus. The results from each of the two surveys were statistically analyzed separately.

Results show undesirable levels of job-related stress, motivation and satisfaction in some segments of higher education employees; as well as associations between poorer health and high stress levels. The study established a potential justification consequently, the authors recommend organizational offerings of: stress relief programs; health fairs and health club memberships; stress management workshops; use of mobile apps for stress relief; job description reviews to eliminate work-related demands; changes to managerial styles that align with the culture of employees; re-evaluation of organizational structure; and enhanced communication amongst workplace management and employees.

Limitations of this study include small sample sizes and the presence of confounding factors that were not considered. In addition, this study did not look into whether occupational position or occupational difficulty compromised the nature of work causing employees to experience lower levels of satisfaction, since the extent to which employees feel satisfied with their work may influence their physical well-being.

There are a number of factors that can affect employees with regards to medical illnesses in a job-related setting. There are three factors in particular that have been shown to negatively affect the health of employees: job-related stress; motivation; and satisfaction. These effects have not been studied in depth in faculty and administrators of higher education institutions, hence this study seeks to achieve that.

This study models competition in local deposit markets between for‐profit and not‐for‐profit financial institutions. For‐profit retail banks may offer a superior bundle of financial services, but not‐for‐profit (occupational) credit unions enjoy subsidies from their sponsors (and exemption from federal income taxes), which allow them to capture a share of the local market. The model predicts that, at the county level, greater participation in credit unions is associated with higher levels of retail‐banking concentration. This hypothesis is supported by empirical evidence for the period 1990‐2000, but not for the most recent past (2001‐2002). The ability of credit unions to affect local banking market structure supports the presumption of current banking anti trust analysis that retail banking markets are local. Further, this study provides an empirical analysis of how local economic conditions‐income per capita and population density‐affect competition between banks and credit unions.

The purpose of this paper is to explicate professionals’ giving backstory, identifying what motivates and hinders professionals’ undertaking of pro bono service activities. Examples are provided of different pro bono giving styles, as professionals struggle to resolve inter-institutional tensions, thus addressing this little understood yet vital form of giving, and meeting an important research priority.

Using a discovery-oriented grounded theory approach, this paper draws on narratives from interviews with 31 professionals to explicate, from the professional’s point of view, the backstory of pro bono service.

The authors provide an integrative institutional logics-based framework for understanding the backstory to professionals’ giving. Three distinct pro bono giving styles are revealed: first, an individual logic (self-centric), an “I” logic; second, an organizational logic (organization-centric), “We” logic; and third, a societal “All” logic (where the greater good to society in general is the dominant logic). The paper concludes with recommendations for how professionals and professional service firms (PSFs) can better align their pro bono giving styles with non-paying not-for-profit clients for multi-party benefit.

The originality of this research lies in addressing an important yet little understood form of giving through delving into the backstory to pro bono service. First, the paper theorizes the characteristics of a formerly unarticulated form of giving, distinguishing it from individual-to-individual close consumer gifting, individual to organizational charitable giving, sponsorship, and volunteering. Second, the different inter-institutional logics of pro bono giving are identified, with three main pro bono giving styles uncovered. Third, the authors link professional services theory, theoretical perspectives from giving, and institutional logics theory to develop an integrated framework to explain service professionals’ pro bono activities. Furthermore, a compelling agenda for future research is provided to guide future work.