scholarly journals Overcoming the Cause of Failure and the Role of Issue Salience: Toward a Comprehensive Theory for Nonprofit Activity and Competition in a Three-Sector Economy

2014 ◽  
Vol 5 (2) ◽  
pp. 335-365 ◽  
Author(s):  
Lewis Faulk

AbstractThis paper extends the theoretical framework of nonprofit activity in three-sector economies. Perspectives from existing theories on nonprofit organizations and the agenda setting literature are simultaneously considered. The nonprofit form provides one solution to the causes of market failure that are inherent to the different classes of goods discussed by previous theory. However, issue salience can lead to public policies that correct market failures. Such policies can lead to greater competition for tax-supported funding and to for-profit entry. This combined framework allows for the integration of the various theories on the existence of nonprofit organizations under one theoretical lens. It also yields a framework to empirically analyze industry dynamics and inter-organizational competition specifically within nonprofit and mixed-sector markets. The temporal variation and relative strength of issue salience in various mission areas in which nonprofits participate are particularly considered. This theoretical perspective leads to several important implications for industrial structure, nonprofit competition for resources and market share, public policy, advocacy, contracting, and public–private partnerships as the issues nonprofits address evolve over time.

2015 ◽  
Vol 1 (2) ◽  
pp. 35
Author(s):  
Catharine Hill

<p>Neoclassical economists make the case for profit seeking firms in the private sector because they supply goods and services efficiently, meeting consumer demand at the least possible price and the highest quality. The government also supplies some goods and services directly, and also has made provisions for non-profit firms to do so, recognizing that in some cases for-profit firms will not supply them efficiently, because of a variety of market failures. In the United States, higher education has been one of those services that has traditionally been supplied to a large extent by non-profits and the government sector, and not by the for-profit sector. Over the last few decades, that has been changing radically, with much of the growth in enrollments in higher education taking place in the for-profit sector. Understanding the evolving roles of for-profits, non-profits and the public sector in the provision of higher education over the past several decades is important because they can have public policy implications. The government’s response to market failure, in particular, has welfare implications for both individuals and society.</p>


2020 ◽  
Vol 29 (2) ◽  
pp. 206-217
Author(s):  
Jianyuan Ni ◽  
Monica L. Bellon-Harn ◽  
Jiang Zhang ◽  
Yueqing Li ◽  
Vinaya Manchaiah

Objective The objective of the study was to examine specific patterns of Twitter usage using common reference to tinnitus. Method The study used cross-sectional analysis of data generated from Twitter data. Twitter content, language, reach, users, accounts, temporal trends, and social networks were examined. Results Around 70,000 tweets were identified and analyzed from May to October 2018. Of the 100 most active Twitter accounts, organizations owned 52%, individuals owned 44%, and 4% of the accounts were unknown. Commercial/for-profit and nonprofit organizations were the most common organization account owners (i.e., 26% and 16%, respectively). Seven unique tweets were identified with a reach of over 400 Twitter users. The greatest reach exceeded 2,000 users. Temporal analysis identified retweet outliers (> 200 retweets per hour) that corresponded to a widely publicized event involving the response of a Twitter user to another user's joke. Content analysis indicated that Twitter is a platform that primarily functions to advocate, share personal experiences, or share information about management of tinnitus rather than to provide social support and build relationships. Conclusions Twitter accounts owned by organizations outnumbered individual accounts, and commercial/for-profit user accounts were the most frequently active organization account type. Analyses of social media use can be helpful in discovering issues of interest to the tinnitus community as well as determining which users and organizations are dominating social network conversations.


2004 ◽  
pp. 94-110 ◽  
Author(s):  
A. Shastitko

Various ways of state participation in the mechanisms of transaction management are considered in the article. Differences between compensation and elimination of the market failures are identified. Opportunities and risks of non-regulatory alternatives usage as a mean of market failure compensation are described. Based on classification of goods correlated to relative cost of their useful characteristics evaluation (search, experience, merit) questions of institutional alternatives in three areas (political, financial and commodity) are examined.


2017 ◽  
Vol 4 (3) ◽  
pp. 60-71 ◽  
Author(s):  
Alfredo Fort

Though difficult to ascertain because faith based organizations (FBOs) might keep a low profile, be confused with other non-governmental organizations (NGOs), or survey respondents may not know the nature of facilities attended to, these organizations have a long presence in teaching health personnel and delivering health services in many rural and remote populations in the developing world. It is argued that their large networks, logistics agreements with governments, and mission-driven stance brings them closer to the communities they serve, and their services believed of higher quality than average. Kenya has a long history of established FBOs substantial recent health investment by the government. We aimed to find the quantitative and qualitative contributions of FBOs by analyzing two recent data sources: the live web-based nationwide Master Health Facility List, and the 2010 nationwide Service Provision Assessment (SPA) survey. Using this information, we found that FBOs contribute to 11% of all health facilities’ presence in the country, doubling to 23% of all available beds, indicating their relative strength in owning mid-level hospitals around the country. We also constructed an index of readiness as a weighted average from services offered, good management practices and availability of medicines and commodities for 17 items assessed during the SPA survey. We found that FBOs topped the list of managing authorities, with 70 percent of health facility readiness, followed closely by the government at 69 percent, NGOs at 61 percent and lastly a distant private for profit sector at 50 percent. These results seem to indicate that FBOs continue to contribute to an important proportion of health care coverage in Kenya, and that they do so with a relatively high quality of care among all actors. It would be of interest to replicate the analysis with similar databases for other countries in the developing world.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dane K. Peterson ◽  
Cathryn Van Landuyt ◽  
Courtney Pham

PurposeThis paper examines how the inferred motives for corporate philanthropy relate to the types of charitable causes supported.Design/methodology/approachPublished data were obtained for 256 publicly traded and private corporations from a variety of sources.FindingsThe results demonstrated that a number of motives were not significantly related to total charitable giving, but were related to how charitable funds were distributed to various charitable causes. Thus, the study provides insights on the strategic use of corporate charity as means of achieving various business objectives and advancing a theoretical understanding of corporate philanthropy strategies.Research limitations/implicationsThis study only investigated some of the presumed motives for corporate philanthropy. Even for the motives investigated in this study, no attempt was made to examine all the motivational factors that determine the level of need for a specific motive. Thus, while the present study provides some of the first evidence of a relationship between motivational factors and data on the types of charitable causes supported, there are other motivational factors that could be investigated in future studies.Practical implicationsThe results have a number of implications for managers of nonprofit organizations such as marketing/targeting potential donors. Additionally, the results could be useful for managers of for profit firms in terms of comparing corporate strategies with competing firms.Originality/valueThe study provides a framework for investigating the relationship between motivational factors and types of charitable causes supported.


2017 ◽  
Vol 8 (3) ◽  
pp. 211-235 ◽  
Author(s):  
Erynn Beaton ◽  
Hyunseok Hwang

AbstractThe number of nonprofit organizations is rapidly increasing, which has led nonprofit practitioners to complain of funding scarcity, nonprofit scholars to closely study nonprofit competition, and policymakers to consider increasing nonprofit barriers to entry. Underlying each of these perspectives is an assumption of limited financial resources. We empirically examine this assumption using county-level panel data on nonprofit human services organizations from the National Center for Charitable Statistics. Contrary to the limited resources assumption, our fixed-effects models show that increasing nonprofit density, at its current levels, has the effect of increasing sector financial resources in each county. We suggest that these findings prompt a tradeoff for policymakers. A sector with free market entry results in a nonprofit sector with more, smaller nonprofits, but such a sector may have the capacity to serve more people because it has more total sector financial resources. Conversely, a sector with higher barriers to entry would translate to a sector with fewer, larger nonprofits with less overall capacity due to fewer sector financial resources.


Author(s):  
A. Y. Pluiko

The article analyses the manifestations of a market failure problem revealed during the economic crisis in the euro area, namely business cycles, market inability to ensure money circulation and avoid inflation. It is shown that the cyclicity of economic development has revealed in various degrees of economic contraction and different rates of its recovery. These differences have been exacerbated by the new procyclical factors emerged from the transition to a single currency. As for money circulation the crisis has almost no impact on the single currency functioning: the euro has maintained its position on the world market and properly performed money functions in the domestic. The goal to achieve economic development without inflation in the euro area generally has been solved successfully by the European Central Bank (ECB). However, due to the fact that the ECB in its monetary policy does not pay sufficient attention to the increased inflation in small and relatively poor countries, the crisis has been more acute in them than in large countries with low inflation. The goals of ensuring money circulation and avoiding inflation can be settled more effectively in the euro area in case of more tight coherence in economic policy and strengthening of supranational mechanisms of economic governance.


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