Provision and price of child care services: For-profits and nonprofits

We study the market for child care services, with a special focus on examining competition between for- and nonprofits. We estimate a two-stage oligopoly model of product differentiation. The first stage estimates a model of endogenous market structure and the second stage corrects for market structure to examine the prices charged and capacity choices for child care centers. We find that the actions of “same-type” providers have a statistically significant impact on a provider’s entry and pricing decisions but we fail to find evidence that the actions of “other types” have a significant impact. Nonprofit child care providers and Head Start centers do not appear to crowd out for-profit providers. Further, we find that for-profits and nonprofits respond differently to market characteristics generating spatial differences in the types of center available in a market. Our data suggest that for-profits are more likely to enter markets with higher percentages of economically disadvantaged students, but they primarily serve those who work, rather than live, in the market. The prevalence of disadvantaged students does not impact the entry decision of nonprofits leaving disadvantaged areas with relatively fewer non-profit options to serve residents. Policies to encourage for-profit daycare would likely lead centers to locate in markets where they can provide service for workers, whereas a policy to encourage nonprofit entry might be more effective in providing low cost care for nearby residents.     

The marketing cycle for a not-for-profit

Marketing is a process, one with discrete and identifiable steps. This is true for both for-profit and nonprofit organisations. However, many nonprofits are told what services or products they will provide, thus skipping the crucial first steps in the marketing process. This paper lays out a classical marketing cycle and shows its applications for nonprofit and voluntary organisations. Several examples are discussed.     

Student loans in developing countries: government versus company loans

Using data from the International Finance Corporation study on private investment in education, Tooley and West give details of two types of international experience with student loans. In particular they look at the government student loan scheme in Thailand and loan schemes offered by various for-profit and nonprofit education companies in Peru, Colombia and India. Difficulties are pointed out with regard to the government scheme, which it may be possible to alleviate under the company schemes.     

Rural hospital performance and its correlates

The cost, technical, allocative and scale efficiencies of a sample of rural U.S. hospitals are calculated via linear programming models. Tobit analysis is used to assess possible correlates of each of the efficiency measures. A large amount of dispersion in operating efficiency is found within our data set; the majority of the dispersion is due to technical inefficiency. In general, for-profit hospitals are found to outperform not-for-profit and public hospitals. Demand characteristics, quality of care, and the mix of services offered are also found to influence performance.     

Provision of child care: Cost functions for profit-making and not-for-profit day care centers

In this paper, we explore and compare the operation of profit making (PMOs) and not-for-profit (NPOs) day care centers using data from a random sample of Massachusetts day care centers. We find many differences in the characteristics of PMOs and NPOs. Most interestingly, NPOs pay significantly higher wages than PMOs although the staff of NPOs has aproximately the same education and less experience than the staff of PMOs. NPOs also have significantly more staff per child than PMOs. We estimate separate cost functions for PMOs and NPOs and find the parameters of these functions to be insignificant different imiplying that the higher observed costs for NPOs result from different input (e.g., paying higher wages) and output (e.g., more interaction and larger size) choices and not from differences in methods of operation. Finally, we find that current monetary and inkind subsidies have no significant effect on the costs of day care centers.     

The role of organizational culture,capabilities, and adoption of e-marketing on nonprofits' organizational performance

Nonprofit organizations are facing increasing challenges to survival and mission accomplishment in a market economy. Thus, many nonprofit organizations are actively exploring how to enhance organizational performance through Internet and communication technologies in the digital era. The relationship between e-marketing adoption and organizational performance of for-profit companies has been studied intensively. However, this relationship has not been examined in the nonprofit context. The objectives of this study are to investigate factors promoting the adoption of e-marketing and the latter's effect on the performance of nonprofits. This paper surveyed 54 nonprofits and used partial least squares structural equation modeling (PLS-SEM) to test the research hypotheses grounded in resource dependence theory and e-marketing orientation. Results indicated that top management's attitudinal emphasis on e-marketing does not lead to e-marketing adoption. Differs from for-profit companies, nonprofits' e-marketing adoption is mainly related to planning and implementation capabilities. Moreover, although planning strongly influences e-marketing adoption, implementation capabilities play a crucial role in a performance-driven adoption. Hence, if e-marketing is adopted without sufficient manpower and skills, organizational performance will not be enhanced even with adequate e-marketing budget.     

Sensitive groups and marketing communications

Marketing communications by organisations offering nonprofit and largely voluntary services to sensitive groups in the population raise issues and problems that are totally different and vastly more complex than the normal marketing of consumer goods and services for profit. This paper reviews bereavement care services as epitomising these issues and suggests that the analysis of communication networks offers the best way forward for describing and analysing these complexities. Using a self-completed diary, bereavement care organisations recorded communications they had made to, and received from, the bereaved and other organisations. The data highlight the problems of communication when offering voluntary services to sensitive groups.     

EVALUATING THE IMPACT OF LEGAL CHANGE ON NON-PROFIT AND FOR-PROFIT ORGANIZATIONS - The case of the Israeli longterm care insurance law

This article evaluates the impact of legal change on non-profit and for-profit organizations providing home care services mandated in the Israeli Long-Term Care Insurance Law, through the lens of neo-institutional and resource dependency theories. The findings of the study, which was conducted over a ten-year period, revealed that the distinctions between organizations in the two sectors are blurring due to coercive, mimetic, and normative isomorphism. Considerable dependence on government funding provided for in the law forces these organizations to adopt behavior that conforms to government policies and standards for service provision. Moreover, the growing tendency toward mimetic behavior and the increasing proportion of professional workers in both sectors causes for-profit and non-profit organizations to adopt similar bureaucratic behavior and organizational structures.     

Utilization control in HMOs.

Health Maintenance Organizations (HMOs) have emerged as a major vehicle to reduce transaction costs associated with defining the limits of health insurance coverage and to provide appropriate provider incentives. This article explains the heterogeneous set of incentives used by HMOs to reimburse providers and performs empirical tests of their effectiveness. The empirical analyses reveal that utilization of health care services is reduced when (1) physician compensation is based on salary or capitation arrangements rather than some measure of output; (2) bonuses and paybacks are based on individual rather than group performance; and (3) when the HMO operates as a proprietary (for-profit) organization. Utilization is not significantly affected by incentives placed on the hospital. Finally, physician ownership of the HMO was found to lead to higher levels of utilization.     

Workers with Disabilities: Exploring the Hiring Intentions of Nonprofit and For-profit Employers

Using the Theory of Planned Behavior as a conceptual framework, focus groups were held with nonprofit and for-profit employers in order to examine behavioral intentions to hire workers with disabilities. Content analysis revealed the following main themes: (1) For-profit hiring strategies were driven by a mission to sell a product or service; (2) Nonprofit hiring strategies were driven by a mission to serve the community; (3) Forprofit hiring and nonprofit hiring were impacted by the economy; (4) Although driven to have diverse workforces, the number of workers with disabilities was largely unknown; and (5) Employer attitudes mattered and impacted job opportunities for people with disabilities. Implications of this qualitative study highlight the utility of the Theory of Planned Behavior and the role that nonprofit managers and leaders may play in improving employment opportunities for individuals with disabilities.     

Do quality perceptions of health and social services vary for different ethnic groups? An empirical investigation

The United States is now more ethnically diverse than any other time in its history. In 2000, minority ethnic groups comprised 26% of the US population; by 2010, they comprise 35%, and in 2080 they will form the majority of American citizens. And among these ethnic groups, African Americans (12.4%), Hispanics (15.4%) and Asians (4.4%) were the most predominant in 2000. The growth of this segment of the population is not only in terms of numbers but also in terms of economic development. Minority groups are showing marked improvement in income and education levels leading to greater purchasing power. As a result, for‐profit companies are increasingly targeting minority populations with products and promotions specifically designed for specific minority groups. Even non profit organizations such as educational programs, social service and healthcare agencies are striving to design specific services and culturally competent outreach models in order to serve this increasingly diverse marketplace. But despite the strides made by non profit agencies, several studies note the tremendous disparities between the ethnic and racial groups in the seeking and the receipt of health‐care and social services. Additionally, there is limited empirical information about the perceptions of minority consumers. In order to effectively serve minority groups, it is essential to understand their experiences with the non profit service industry and to assess their ongoing concerns. In this study, we focus on two critical components of the non profit world – healthcare and social services. We conducted a survey to compare and contrast the social service and health‐care quality perceptions of three ethnic groups: Caucasians, African‐Americans and Hispanics. Our study, undertaken in collaboration with community health centers, reveals distinct differences in perceptions between the three ethnic groups. Based on our findings, we outline a set of implementable strategies for social service and community health organizations. Copyright © 2010 John Wiley & Sons, Ltd.     

Non-profit and for-profit entrepreneurship: a trade-off under liquidity constraint

Many non-profit enterprises are created ex-nihilo by individuals. The choice of non-profit status may be all the more surprising since this legal form denies founders the right to appropriate profits from the invested capital. The aim of this article is to understand the reasons why some individuals decide to create non-profit organisations instead of for-profit firms and do so under liquidity constraint. The model suggests that non-profit organisations enter at higher optimal levels of production, and are more constrained by access to credit. Moreover, non-profit entrepreneurs are more managerially efficient than their for-profit counterparts. However they cannot allocate capital as efficiently as the for-profit firms would do.     

Comparing Nonprofit Charter and Traditional Public School Board Member Perceptions of the Public,Conflict, and Financial Responsibility: Is there a difference and does it matter?

In this paper, survey data collected from nonprofit charter school board and elected public school board members in Minnesota is used to test three hypotheses relating to theories of New Public Management, democratic governance, and small group dynamics. We find that nonprofit charter school board members perceive lower levels of conflict, place less priority on the general public, and perceive a higher degree of governance responsibly in the area of financial management, than elected board members. We conclude that the increased use of nonprofit charter schools has potentially substantial implications on accountability and effectiveness in the delivery of public education.     

CSR and service quality in nonprofit organizations: the case of a performing arts association

• The relationship between corporate social responsibility (CSR) and marketing performance has been widely investigated recently, but mostly in relation to for-profit companies. This paper highlights the importance of this topic for nonprofit organizations (NPOs). Focusing on an Italian NPO operating in the performing arts and entertainment industry, two empirical studies (a quantitative survey and a qualitative exploratory enquiry) prove the strategic relevance of CSR in nonprofit contexts. The results demonstrate that CSR can be considered an additional dimension of the customer perception of service quality in NPOs and reveal that customer perception of the social responsibility of the studied NPO is strongly linked to its institutional mission and to the modalities through which it pursues that mission.

Copyright © 2014 John Wiley & Sons, Ltd.     

Service diversification and service quality differences in the third-party administration of US organic regulations

This paper makes the case that ‘competitive third-party regulatory arrangements’ draw attention to the service provision aspect of regulatory administration. Using multiple methods, the study examines service diversification and service quality differences exhibited by third-party administrators of US organic food regulations. By examining how the service emphases of third-party regulatory administrators differ by organizational form, the study documents that the inclusion of nonprofit and private third-party regulatory administrators may expand the services that are offered and performed alongside regulatory program functions. The implications of the findings for regulatory administration, and the field of public management generally, are discussed.     

Electronic mail as a fundraising tool

The World Wide Web has attracted considerable attention and investment in the for-profit and nonprofit worlds, but electronic mail (e-mail) alone can be one of the most effective online fundraising and marketing tools. Its use in fundraising appeals is considered and its relationship to traditional direct mail fundraising discussed. Other more innovative methods of incorporating e-mail into a fundraising mix are explored, including the basic applications of an e-mail signature to the more advanced uses of automated e-mail response systems. This paper is based on research carried out by the author at City University during 1994 and 1995 as part of an MSc course in Information Science and published as ‘Electronic sources of fundraising information for UK nonprofit fundraisers’.     

Relational exchange in nonprofits: The role of identity saliency and relationship satisfaction

In practice and research pertaining to charitable giving, the emphasis has been on identifying the characteristics and motivations of donors, but few have asked why donors continue to support a particular nonprofit. This study examines the relationship between renewing donors and nonprofits and their impact on charitable giving levels using identity salience and relationship satisfaction as key mediators of nonprofit relational exchange. In a survey of 719 repeat donors in the United States, to a broad range of nonprofit organizations, identity saliency and relationship satisfaction are introduced as mediating constructs, and the results confirm that both constructs partially guide donor motivations and charitable giving. Theoretically, this suggests that the more a donor identifies with a nonprofit organization and the more satisfied the donor is in the relationship with the organization, the higher their intention to donate. This finding supports previous research in segmentation strategies and service‐dominant logic in the nonprofit sector. Managerial implications of this research include indication of a paradigmatic shift from relational exchange to transformational exchange (or value cocreation) in nonprofit organizations' approach to donor cultivation.     

Dynamic Equilibrium in the Hospital Industry

We present a dynamic model of the hospital industry in which nonprofit and for-profit hospitals coexist and compete and are differentiated by their objective functions, investment technologies, and taxation rates. In our model, patients differ by income and type of insurance coverage, and choose admission to their preferred hospital, while hospitals choose investment, entry, exit, and pricing strategies. We estimate the parameters of the model with aggregate data and a GMM procedure. We then use the model to examine the effects of changes in the Medicare reimbursement system, universal health-care coverage, and taxation of nonprofits.     

Indicators for planning of health services: assessing impacts of social and health care factors on population health.

Community health planning requires identification of the level of access to care and factors which affect the differentials in use of health services. In formulating strategies or alternatives for planning, some assessment of the current level or patterns of health services must be made. It is this element of the planning process that is addressed in this paper. In this study sixty-five specifically designated areas (medical market areas) in the Province of Quebec, Canada were selected. The analysis was performed using data obtained from a large scale study of physicians' responses to the introduction of universal medical care insurance in Quebec. Our analysis offered an opportunity to observe the impact of Medicare on access to care for those thought to be underserved.     

What's different about nonprofit and voluntary sector marketing? A research agenda

What is the role of this journal? This paper addresses the controversies over what constitutes marketing in nonprofit and voluntary organisations, and over the nature and significance of the differences between marketing in not-for-profit and for-profit contexts. It delineates the field in terms of its objectives and programmes, and locates it within the broader discipline of marketing, in terms of the sorts of exchanges that are sought with external parties. It then considers the sorts of reflections and research that will contribute to the development of this area of professional practice.