The impact of professionalization and partnerships on nonprofit productivity

ABSTRACT

This research evaluates the influence of professionalization and partnering with firms on nonprofit productivity. Professionalization is measured in terms of the ratio of paid employees to volunteers, and productivity is measured through the ratio of total assets to number of beneficiaries, and the ratio of total revenues to number of paid employees and volunteers. Empirical analysis combines a survey to a representative sample of Spanish nonprofits, with information available from public sources. Results confirm the existence of a ‘U-shaped’ relationship between professionalization and nonprofits’ capability to reach more beneficiaries with lower assets; a positive effect of professionalization on revenue generation capability; and a positive effect of partnerships with businesses on the nonprofit’s asset-per-beneficiary ratio. Discussion sheds light on the on-going debate about the implications of professionalization and partnering with firms for the capacity of nonprofit organizations to attract resources and to extend their reach in a more efficient way.     

The Benefits and Barriers Associated with the Use of the Internet Within the Non-Profit Sector

ABSTRACT

In the last few decades, advances in new information technologies in general and the adoption of the Internet in particular have attracted the attention of many academics and practitioners alike. Much of current research, however, is focused on for-profit organizations, and less emphasis has been placed on other organizational contexts, such as the non-profit sector. The purpose of this article is to analyze the attitude of NPO managers towards the Internet, the extent to which non-profit organizations are adopting this information technology and the perceived benefits and obstacles associated with its use. A sample of three hundred and ninety two non-profit organizations in Portugal was examined. The statistical analysis indicated that the existence of a favorable attitude towards the Internet was positively correlated with the perception of Internet benefit dimensions. Conversely, the study found no empirical evidence linking perceived Internet benefits with the various NPO fields of activity. The article concludes with a series of limitations and implications for both theory and practice.     

Public partnerships,governance and user involvement: a service user perspective

This paper explores public partnerships and governance from a service user perspective, drawing both on the author's own involvement in service user organizations and movements and on material associated with and produced by these organizations and movements. It addresses the ambivalent relationship between service user organizations and movements and the idea and practice of ‘partnerships’, and explores their preference for ideas of ‘alliance’. It charts the different approaches to and ideologies underpinning user involvement and their implications for partnership between state and service users and their organizations. It offers a set of components for improving such partnerships as well as highlighting the growing interest of service users' organizations and movements in developing and extending alliances.     

Antecedents and consequences of global responsiveness: An empirical examination of MNCs in the global sourcing context

As global responsiveness (GR) has been recognised as critical for global market advantage, we draw upon social capital theory and develop a theoretical model which clarifies the determinants and consequences of GR. Based upon a cross-national sample of 118 MNCs from the U.S., Europe, and Asia, we found that intra-firm structural and inter-firm relational social capital, as reflected in integrative mechanisms and joint problem solving respectively, are positively associated with GR. In addition, whilst negatively related to global sourcing barriers, GR has a positive effect on MNC performance. Our findings also indicate that GR plays an essential role by fully mediating the associations of information-based mechanisms, people-based mechanisms, and joint problem solving with global sourcing barriers and MNC performance.     

The Founding of a Nonprofit Organization as a Teaching/Learning Experience: A Case Study in Service Learning

ABSTRACT

The present case study describes how the founding, by faculty, of a nonprofit organization has aided marketing instructors (and instructors other disciplines) in teaching students to understand and apply marketing (and other business) theories in a “real-world” environment. To that end, the case study is organized as follows. First, it offers a short discussion on the pros and cons of working with for-profit versus nonprofit organizations to add value to the learning experience for students. Second, it describes the benefits and drawbacks instructors and/or students have experienced from starting their own nonprofit organization as a teaching or learning tool to help translate marketing theory into marketing application.     

The Ethics of Quality: Problems and Preconditions

A number of advocates for TQM contend that firms who embrace TQM will automatically and naturally act in ethically sound ways (Roth, 1993; Pace, 1999; Steeples, 1994). This claim is a strong one. This paper assesses its truth. We consider the many ways in which quality initiatives, if undertaken in good faith, can foster sound ethics. We explore the various ways in which TQM presupposes, and thus cannot engender, ethical behavior. And, finally, we identify some of the ethical blind spots in quality initiatives and TQM. We propose that if TQM is undertaken by thoughtful people who take steps to correct its ethical blind spots and who understand the need for an ethical underpinning, then TQM and ethics will prove mutually reinforcing.     

Gaining legitimacy through hiring local workforce at a premium: The case of MNEs in the United Arab Emirates

This study examines the process and outcomes of cultivating external legitimacy through the employment of host country nationals by multinational enterprises’ (MNEs) affiliates in the United Arab Emirates. It builds on the literatures of both institutional theory and legitimacy. Analysis of data obtained from 48 managers of MNE's affiliates located in the UAE shows that in sectors where the employment of host country nationals is almost taken for granted such as in banking, MNEs are driven by a sense of appropriateness and social legitimacy. In contrast, in sectors where the employment level of UAE nationals is almost nonexistent, those MNEs engaging in localization are driven by the logic of economic efficiency and tend to employ nationals in order to extract rent from the government. The authors discuss the results and their managerial and policy implications.     

The Dynamics of Negotiation in a Global Inter-Organizational Network: Findings from the Air Transport and Travel Industry

Networks of interdependent organizations, also known as network-based businesses, are being shaped by many forces. In supporting negotiations between the airlines and travel agencies locked in a principle/agent relationship wrought with tension, this paper uncovers the dynamics of negotiating in a global inter-organizational network. It provides guidelines for supporting such negotiations. Networks, as a form of interorganizational co-ordination, are becoming increasingly predominant. Knowledge on how to facilitate negotiations in global inter-organizational networks will become more valuable.     

The acculturative stress of host country managers working at MNC subsidiaries: Determinants and effects

This paper introduces the concept of acculturative stress to indicate a distinct psychological difficulty faced by host country managers working at multinational corporation (MNC) subsidiaries. Drawing on the social identity and self-verification theories, we suggest that host country managers are exposed to acculturative stress due to the challenges they face in verifying their national cultural identity. We identify the perceived cultural incongruence and the lower relative standing of host country managers as proximal determinants of acculturative stress and examine its negative impact on their work engagement. The analysis results of a sample of 643 Korean managers working at 60 MNC subsidiaries in Korea support our hypotheses on the determinants and effects of acculturative stress.     

The impact of inward FDI on local companies’ labour productivity: evidence from the Italian case

The article aims to investigate the impact of inward foreign direct investment (FDI) occurring through acquisition upon the local target company’ performance, as measured by labour productivity. It relies upon the idea that multinational enterprises (MNEs) act as a device to transfer firm‐specific proprietary assets, thus causing their subsidiaries to exhibit better performance than their host country rivals. Specifically, our results show that foreign acquisitions generally increase the local target companies’ labour productivity in the medium term after the acquisition. The empirical evidence refers to foreign acquisitions that occurred in Italy in the period 1994–1997.     

The impact of local and external university knowledge on the creation of knowledge-intensive firms: evidence from the Italian case

This paper investigates how far in space university knowledge goes to breed the creation of knowledge-intensive firms (KIFs), depending on the nature (either codified or tacit) and quality of this knowledge. We consider the impact of knowledge codified in academic patents and scientific publications and tacit knowledge embodied in university graduates on KIF creation in Italian provinces in 2010, while distinguishing between local university knowledge created by universities located in the same province and external university knowledge created by universities located outside the province. Our econometric estimates indicate that the positive effects of scientific publications and university graduates are confined within the boundaries of the province in which universities are located. Conversely, the creation of new KIFs in a focal province is positively affected by both local and external university knowledge codified in academic patents, even though the positive effect of this external knowledge rapidly diminishes with geographic distance. Furthermore, the above effects are confined to high-quality universities; low-quality universities have little effect on KIF creation.     

SME development,economic growth,and government intervention in a developing country: The Indonesian story

There is an ongoing debate in the literature on the development of small and medium enterprises (SMEs) in less developed countries (LDCs) on two issues: the survival of SMEs in the course of economic development and the importance of government promotion programs for SME development. This research paper aims to examine those issues empirically with Indonesian data. For this purpose, it develops and tests a set of hypotheses. It shows that both real gross domestic product per capita and government development expenditure (especially that used to finance SME development promotion programs) have positive impacts on SME growth. With this finding, the research argues that SMEs in LDCs can survive, and even grow in the long-run, for three main reasons: (a) they create a niche market for themselves, (b) they act as a “last resort” for the poor, and (c) they will grow along with large enterprises (LEs) because of their increasingly important production linkages with LEs in the form of subcontracting.

英国政府会计改革:政府统一账户的最新发展及评价

建立政府统一账户是英国政府近年来推进公共部门会计改革的重要举措,其任务在于编制覆盖英国所有公共部门的、基于通用会计准则的合并财务报表,更好地支持财政政策的发展和提供公共服务。文章介绍了WGA的起源和发展历程、WGA的合并范围与发展目标、建立WGA的重要举措,分析了政府对WGA效用的预期,以及WGA发展的现实困境,例如：WGA信息价值的局限性、合并会计技术的问题、政府债务合并的困境等等。     

Transaction services and SME internationalization: The effect of home and host country bank relationships on international investment and growth

Building on the argument put forward by North and Wallis (1994) that the transaction sector enables economic growth by lowering the costs of transacting, we investigate how internationalizing firms’ host and home country bank relationships affect their international specific investments and growth. Banks provide payment, liquidity, and risk management services, which are essential to international business relationships, yet little is known about how banks affect international business relationships. In a sample of 255 small and medium-sized enterprises (SMEs), we find that host and home country bank relationships affect the dependent variables differently. We contribute to the literature by explicating the role and effects of banks in international business relationships. Our findings have implications for understanding transaction services in international business as well as the choices made by their customers.     

The Challenge of Promoting a Cohesive Institutional Identity: An Investigation of the Impact of External Audiences,Task Specialization,and the Overall Organization

ABSTRACT

Financial giving behavior of individuals to charities is analyzed, using demographic, personality and behavioral variables for explanation. Both the probability of a donation and the amount of the donation are analyzed, using data of 500 Dutch households. Donors give because they appreciate the good work of the organization, because it gives them a good feeling, or because they feel personally involved. Empathy with the final receivers influences the decision to give, but not the amount that is donated. When donations become a part of the donor's “mental accounting” system, the average amount given is greater than for ad hoc donations.     

中国企业的学习型组织文化:基于人口统计变量、企业属性、工作满意度和组织绩效的实证分析

By using a Western concept—the instrument called dimensions of learning organization questionnaire (DLOQ), and the data collected from 919 employees in nine companies located in Guangdong Province, China, the present empirical study explores the culture of learning organizations in Chinese business settings. Findings suggest that the DLOQ is applicable to the context of China as well, and those demographic variables, such as age and educational level, together with the types of ownership of Chinese companies, such as state-owned enterprises (SOEs) and privately-owned enterprises (POEs), suggest differences in the culture of learning organizations. Results also indicate that the learning organization culture of a firm has strongly positive impact on employees’ job satisfaction and perceived organizational performance. Two implications should be noted. First, as employees in middle age and with college education show the strongest sense of improving the learning culture, it can be inferred that demographic characters and groups may influence the organization’s learning culture differently. Second, as POEs have a better learning atmosphere than SOEs, it can be inferred that POEs have a stronger competitiveness than SOEs in terms of learning ability and organizational performance. To indigenize the Western construct and instrument of learning organizations, the present study, as an exploratory research, gives substantial knowledge on the subject and seeks to fill the gap in the literature, despite the limitations of cultural nuances and a narrowly-concentrated sample.     

Violations of Service Fairness and Legal Ramifications: The Case of the Managed Care Industry

Adapted from Chan's (2000) model depicting success of litigation, this paper argues that with the application of various legislation, health maintenance organizations' (HMOs') violations of service fairness to each group: enrollees, physicians, and hospitals give rise to each group's lawsuits against the HMOs. Various authors (Bowen et al., 1999; Seiders and Berry, 1998) indicate that justice concepts such as distributive, procedural, and interactional justice can be applied to the area of service fairness. The violation of these underlying justice principles with HMOs' service unfairness to enrollees, physicians, and hospitals is examined. A general synopsis of the ethical issues in the managed care industry is provided. The various lawsuits launched by each group: enrollees, physicians, and hospitals together with the key statutes used are discussed. This paper also highlights the provisions and ramifications of the 11 April 2000 landmark agreement that Aetna made with Texas Attorney General John Cornyn to settle the 1998 lawsuit brought against the company. Lastly, the current ethical issues in the managed care industry are further discussed. The value of this paper can be adapted to the study of organizations' service fairness violations in other industries or in the educational, governmental, and not-for-profit sectors both nationally and internationally.     

Linking Social Issues to Organizational Impact: The Role of Infomediaries and the Infomediary Process

When do organizations decide to ‘adopt’ a given social issue such that they come to acknowledge it in their patterns of action and communication? Traditional answers to this question have focused either on the characteristics of the issue itself, or on the traits of the focal organization. In many cases, however, a firm’s decision to adopt or ignore an issue is not a straightforward function of firm or issue characteristics. Instead, we view issue adoption as a socially constructed process of information exchange between parties that are involved in the emergence and evolution of the issue, mediated by third-party organizations. We refer to this process as the infomediary process and these latter organizations as ‘infomediaries,’ after the information mediation and brokerage roles they play in the social processes linking social issues to organizational impact. We present a concise theoretical model of how infomediaries establish credible linkages between focal organizations and social issues. The thrust of the model is that the infomediation process, rather than the issue or firm characteristics, is what really drives firm-level issue adoption decisions.     

The foreign expansion of a service company: The case of ISS A/S

The internationalization of business increasingly is led by service sectors, particularly services based on highly skilled labour industries. This article explores a quite different range of services – those that employ low-skilled workers in labour-intensive services. The article is based on the case of ISS – International Service Systems – which over the past four decades has pursued an aggressive internationalization strategy. The article describes the foreign expansion history in the period from 1960 to the year 2000 that reflected the vision of top management in combination with the development of a unique business model. In order to explain its development, three theoretical frameworks are highlighted, and it is shown that the resource-based view offers a convincing frame of interpretation.