Strategic issues for charities and philanthropies

This article explores the need for charities and philanthropic bodies to develop strategies which emphasize efficiency and service and the examples and evidence presented highlight some important issues for fundraisers. The most obvious implication is the need for charitable bodies to institute environmental scanning and strategic planning.     

Donor Reliance on Accounting and its Consequences for the Charitable Distribution Channel

The organization of charitable distribution channels to ensure donor contributions reach beneficiaries in an efficient manner and the use of accounting metrics of such efficiency (whether provided directly or by charity rating groups) are oft‐discussed issues in the nonprofit sector. The two issues are inextricably linked since reported efficiency measures influence subsequent donor giving. This study develops a parsimonious model of a charity that must decide how best to employ its resources, either by acting as a direct service provider or as a grant provider to organizations that provide services to beneficiaries. We show that the desire to boost perceptions of efficiency vis‐à‐vis accounting reports leads an organization to rely more on others to provide services rather than being a direct service provider. This temptation to expand either the scope or length of the charity supply line is muted by a desire to avoid redundant costs and improve service delivery. The model's results have implications both for the role of nonprofit accounting and observed distribution strategies of nonprofits.     

Performance Decline and Turnaround in Public Organizations: A Theoretical and Empirical Analysis*

Public sector performance is currently a significant issue for management practice and policy, and especially the turnaround of those organizations delivering less than acceptable results. Theories of organizational failure and turnaround derive largely from the business sector and require adaptation to the public service. The performance of public organizations is more complex to measure, is related to institutional norms, and the idea of ‘failure’ is problematic. Empirical findings from a real‐time, longitudinal study of poorly performing English local authorities are used to develop an initial theory of performance failure and turnaround suited to public organizations. The paper argues that the typical performance of public organizations over time is cyclical. Where cognition and leadership capability are absent, organizations fail to self‐initiate turnaround. In this situation authoritative external intervention is necessary. The strategies applied are principally concerned with building a leadership capability that engages senior politicians and managers in order to overcome inertia and collective action problems. The theory is presented in the form of seven propositions that provide a basis for further research across the public sector.     

审计在基金会治理中能够有效发挥作用吗?

本文以2005年至2009年中国全国基金会为样本,研究基金会捐赠收入与外部审计师选择之间的关系,即在中国慈善市场上,外部监督机制之一的外部审计是否具有治理效应及治理职能如何有效实现。实证结果表明:当基金会选择百强事务所审计时,能够有效实现审计的治理职能,吸引更多的捐赠者进行捐赠;当基金会选择民政部中标事务所审计时,不能有效实现审计的治理职能,从而不能显著增加捐赠收入。上述结论在一定程度上验证了在慈善市场中,外部审计具有治理效应,其有效治理效应依赖于高质量的审计。     

Understanding Public Sector Debt: Financial Vicious Circle under the Soft Budget Constraint

The article explains why debt of public sector organizations grows beyond the sustainable level by focusing on the principal-agent relationship under the soft budget constraint. Specifically, this article explores the extent to which factors affect the level of public sector debt in the context of quasi-autonomous non-governmental organizations (quangos) in Korea over the past two decades (1993–2012). The findings from the panel data analysis suggest that the level of public sector debt increases as an outcome of the financial vicious circle created by the soft budget constraint: a knock-on effect of the moral hazard of quangos as well as the opportunistic behavior of political principals. Public sector debt is positively associated with agency-specific factors as well as the factors related to the political incentives such as policy preferences and electoral considerations. However, macroeconomic factors made little difference to the general pattern of the evidence.     

Organizational learning and knowledge in public service organizations: A systematic review of the literature

This paper is a systematic review of the literature on organizational learning and knowledge with relevance to public service organizations. Organizational learning and knowledge are important to public sector organizations, which share complex external challenges with private organizations, but have different drivers and goals for knowledge. The evidence shows that the concepts of organizational learning and knowledge are under-researched in relation to the public sector and, importantly, this raises wider questions about the extent to which context is taken into consideration in terms of learning and knowledge more generally across all sectors. A dynamic model of organizational learning within and across organizational boundaries is developed that depends on four sets of factors: features of the source organization; features of the recipient organization; the characteristics of the relationship between organizations; and the environmental context. The review concludes, first, that defining 'organization' is an important element of understanding organizational learning and knowledge. Second, public organizations constitute an important, distinctive context for the study of organizational learning and knowledge. Third, there continues to be an over-reliance on the private sector as the principal source of theoretical understanding and empirical research and this is conceptually limiting for the understanding of organizational learning and knowledge. Fourth, differences as well as similarities between organizational sectors require conceptualization and research that acknowledge sector-specific aims, values and structures. Finally, it is concluded that frameworks for explaining processes of organizational learning at different levels need to be sufficiently dynamic and complex to accommodate public organizations.     

The charity: A values-laden institution

Although charitable endeavour has been with us for all time, charities have suffered from archaic or no legislation or regulation, and from a lack of informed accounting and audit attention. The present time is a watershed, with an unprecedented convergence of interest from accountants, auditors, lawyers, the state regulatory body, the consumer and the charities themselves.The article provides the historical, political, and legal background, and the contribution of the theologian and economist. The nature of accountability is discussed, as are issues of efficiency and effectiveness, and the incidence of fraudulent activity. Finally, the roles of the various interested parties are outlined, and the way forward in the light of the convergence is suggested. With all the pieces of the jigsaw in place the charity will be enabled, although not guaranteed, to play its full role in national and international affairs. Much will depend on how successfully the charitable sector can adjust to the changes and challenges now facing it.     

Strategic planning for MIS

This article report on a study of the strategic decision to develop computerized management information systems (MIS) in 32 business organizations. THe findings suggest that this decision is a complex policy decision which involves protracted environmental negotiations, a high and escalating commitment of organizational resources, and extensive organizational preparation. Eleven organizational and environmental factors which influence the decision are identified through a literature review. The influence of these factors on the success of the decision is examined and recommendations are made for managing the decision-making process to insure improved decision outcomes.     

The Governance of Voluntary Work in the Public Sector: Institutional Differences and Invariant Traits

In response to fiscal constraint and the introduction of quasi-market mechanisms into the public sector, in public policy there appears to be the acceptance of the increased use of voluntary labour in the delivery of public services. Traditional forms of governance have tended to ignore the use of voluntary labour in the public sector. The paper builds on an earlier (Hellshorm and Collins, 1999) model of concurrence between voluntary and municipal labour, by focusing onthe demand side of voluntary work. Our exploratory study uses this model to analyse two municipal organisations' mix of voluntary and municipal labour, one Italian and the other a Swedish context.The research method used to collect empirical data was semi-structured interviews of local government employees within the two sites. Thisis linked with an analysis of the institutional context of the two municipalities to inform and test the proposed model of demand for volunteer labour in local government. Resource scarcity, presence of agency for voluntary work, type of production and state rules and norm are used to analyse the institutional invariant traits. The study concludes that traditional institutional theory has ignored voluntary activities. Our case studies of actual practice indicate that different state norms and ruleson citizen rights and equal opportunities are stronger influential factors than the resources situation, in determining the demand for voluntary activities in municipalities.     

How organizations work: Taking a holistic approach to enterprise health

The factors that facilitate organizational learning have traditionally been analysed by organizational learning and, in particular, the learning organization literature. Following a literature review, we have identified fifteen factors. However, these factors have been considered as universal, in other words, applicable to any sector or industry. In this paper we determine the combinations of organizational learning facilitating factors in a specific sectoral context: the Spanish ceramic tile sector, through an exploratory and comparative case study of four companies that illustrate this sector. In addition, we relate the companies' combinations of factors to their strategies (Miles and Snow 1978). The study mainly reveals that: each business strategy category is related to certain factors; the organizations with the most facilitating factors are the most innovative (prospector and analyser); and becoming a prospector implies the distinctive existence of factors 1 and 2, which encompass openness to and capacity for innovative change, a culture that favours the contribution of discerning ideas and maximum attention to the environment.     

Strategic Management in the Public Sector: Reflections on It’s Applicability to Iranian Public Organizations

Strategic management is a managerial story of private sector that has been transferred to the public sector. Many authors have challenged its applicability in public organizations. This paper discusses some important barriers to implementation of strategic management in the public sector empirically. After presenting a conceptual model, we examine several important factors that influence the failure or shortcomings of public sector strategic management. The last section of paper offers implications for theory and practice.     

Emergent Marketing Strategies and Performance: The Effects of Market Uncertainty and Strategic Feedback Systems

Although many process‐based studies appear in the strategic management literature, little attention has been devoted to the formation process of marketing strategies. Drawing on enactment and information‐processing theories, this study views the external environment as a source of information (i.e. enacted) and organizations as information‐processing entities. We propose a conceptual framework of antecedents and market performance consequences of emergent marketing strategies and test it with a sample of 214 UK enterprises. The results suggest that dimensions of market uncertainty (i.e. dynamism and complexity) and strategic feedback systems influence the formation of emergent marketing strategy. Furthermore, the data reveal that market uncertainty aspects condition the association between emergent marketing strategies and market performance in different ways. These findings provide new insights into how emergent marketing strategies evolve and influence organizational outcomes.     

Strategic intent in the management of the green environment within SMEs: An analysis of the UK screen-printing sector

What drives the environmental behaviour of companies is an under-researched and under-developed area of study, particularly in the context of small and medium enterprises (SMEs). This article investigates to what extent the responses by UK screen-printing companies to pressures to improve their environmental performance represented a deliberate attempt by senior managers to provide their organisations with a strategic competitive advantage.Using both a quantitative and qualitative approach, the research shows that the environmental responses of this sector tended to be reactive, defensive and driven by – and frequently limited to – legislative compliance. Even though companies accepted that there were potential commercial benefits to be gained from environmental action, there was very little evidence to indicate that managerial decisions were motivated by strategic intent or that managerial mindsets were tuned to the notion that a proactive environmental response could offer a competitive edge. The article discusses the management implications of this lack of strategic orientation and highlights how a more innovative response by companies could provide both demand and supply side benefits.     

Environmental scanning and forecasting in strategic planning—The state of the art

The objective of this paper is to shed some light on the practical state of the art of the environmental scanning and forecasting function in organizations. Planners were questioned through a multi-faceted survey and the findings supported the conclusion that organizations have not yet widely developed sophisticated systems and integrated their outputs into the strategic planning process.     

Public sector managers: the decision to leave or remain in a job

The public sector faces a grave problem as far as managerial retention as the result of the increasing number of retirements and of voluntary resignations. Despite the vital interest in managerial turnover in the public sector, research is scarce. This study, which increases our understanding of why public sector managers leave their positions, takes a qualitative and narrative research approach in examining voluntary turnover. Interviews were conducted with operations managers (in education, social care, and technical activities) at three Swedish municipalities. We identify a multitude of environment push and pull factors with a focus on administrative support, supervisory support and illegitimate tasks. The narratives of managerial turnover reveal the complexity of the decision to leave or remain in a job, containing a mixture of push and pull factors, negative feelings, unmet expectations and extraordinary events. Three possible HRD actions to decrease undesirable managerial turnover are identified: re-work organizational structures; re-model job characteristics; and re-examine managerial turnover decisions as a long and complex process. Our hope is that the findings are used for ultimately create healthy organizations.     

Context matters: how internal and external factors impact servitization

Abstract

The study investigates how internal and external context factors impact a manufacturer’s servitization process (i.e. the strategic transformation from competing through products towards competing through services). A theoretical framework was developed that integrates a multi-stage conceptualisation of servitization with a focus on the wide range of internal and external context factors that support or oppose the transformation. The study draws on the collective experiences of 25 senior executives from 17 servitizing small- and medium-sized manufacturers, using a focus group-based enquiry method. The findings recognise servitization as a multi-stage transformation process with each stage being exposed to different context factors. The findings identify a wide range of context factors and show how their specific impact varies depending on the manufacturer’s servitization stage. Several theoretical and practical implications are provided.     

Why do Emerging Market Firms Engage in Voluntary Environmental Management Practices? A Strategic Choice Perspective

In this paper, we investigate firms’ decisions to engage in voluntary environmental management (VEM) practices within an emerging market context. Drawing on the strategic choice and the resource‐based view perspectives, we report results from a survey of VEM practices – a specific form of self‐governance – drawing on a sample of 519 Turkish firms from various industries to identify important strategic antecedents of firms’ decisions to engage in such practices. We find that as firms become more customer focused, more inclined to pursue a differentiation strategy and subject to a higher level of strategy‐oriented stakeholder focus, they tend to implement higher levels of VEM practices, with important implications for research, policy and practice for both emerging and developed markets.     

Planning Implications of the Information Systems Strategic Grid: An Empirical Investigation

In recent years, information systems (IS) planning has come to represent a key IS management tool to practitioners and researchers. Concurrently, there has been increasing recognition by organizations that their IS can be viewed as a strategic resource. This research is an attempt to explore the relationship between these two aspects of IS. It analyzes, in an empirical setting, the contingent nature of some IS planning-related variables in the context of the strategic relevance of an organization's IS. The basis for the empirical test is the IS strategic grid framework developed by Cash, McFarlan, McKenney, and Vitale [6]. A questionnaire survey method is employed to elicit information on the strategic orientation of IS and IS planning issues within respondent organizations. The difference in emphasis on various planning aspects in organizations with different IS environments is analyzed. Results of the analysis indicate that there is empirical support for the strategic grid framework and that there are differences in planning aspects among organizations, depending on their location in the grid. The implications of these findings for IS and IS planning are then discussed.     

Are environmental scanning units effective?

Many authorities have urged companies to set up environmental scanning to assist corporate planning. Some advocates have recommended a unit at corporate level. This would give breadth of view and penetration into the future. It would arm decision makers with accurate forecasts. The information would be broad in scope and future directed. It could provide also assumptions for long-range planning. The Fahey and King study produced a model of corporate scanning types. The data showed that environmental information was built into the plan. Though the political environment was important, scanning was inadequate. The best location for scanning was not at corporate level and most firms used irregular methods. The Thomas study concluded that effective environmental scanning was permanent and multi level and that 'best practice' was continuous scanning. In 1978 the sample organizations were revisited. Five of the twelve have not changed their practice. The factors which encouraged a continuous model were the attitudes of academics and business media, demonstrated success of the units, the right kind of personnel. Contrary influences were changes in top management, decentralization moves, resource cuts, defining the environment and its significance, the availability of scanning competent personnel, surprise itself, and the availability of alternatives e.g. external forecasts.     

The development of strategic management in the non‐profit context: Intellectual capital in social service non‐profit organizations

Very little systematic research has examined the applicability of strategic management concepts including SWOT (strengths, weaknesses, opportunities and threats) analysis, industrial organization, resource‐based view and core competency, knowledge‐based view, Balanced Scorecard and intellectual capital (IC) through the lens of strategic management development in the non‐profit context. This paper aims to examine the above concepts in the light of the unique non‐profit environment and determine which one is most applicable to social service non‐profit organizations (SSNPOs) in the knowledge economy. Based on a review of the development of strategic management with a focus on the above concepts within the non‐profit context, this paper argues that the IC concept is more effective compared with the other concepts in the social service non‐profit sector. The paper is considered as a starting point and serves as a milestone in applying IC as a strategic management conceptual framework in the social service non‐profit sector. It helps to build a nascent body of literature suggesting that IC can be used as a competent strategic management conceptual framework in the social service non‐profit sector. A better understanding of the strategic management development in the non‐profit context also helps non‐profit leaders to appreciate that IC is the most appropriate strategic management concept in SSNPOs. The increased awareness of the IC concept in SSNPOs, as a result of this paper, will probably generate further research from both academic scholars and non‐profit practitioners.