Abstract
In this chapter we offer a theory that can explain the similarities and differences in the managerial priorities and tactics of charities and for-profit providers. We do not attribute much importance to legal form but rather focus on conditions in the organizations’ niches. The chapter is divided into three sections. The first reviews research that examines the different outputs and outcomes of charities and for-profits. Second, we review theories and research proffered by the sociology and management literatures to gain perspective on what might explain managerial priorities and tactics. Finally, we use recent advances in niche theory to shed light on why many charities have priorities and tactics similar to for-profits while others remain quite distinct. In the course of this exercise we hope to introduce a framework for studying organizations—both for-profits and charities—that will prove useful for students of macro-organizational behavior.
This chapter extends ideas introducted in Chapter 1 of the authors’ book, Nonprofits organizations in an age of uncertainty: A study of organisational change (Hawthorne, NY: Aldine de Gruyter, 1998). That research was sponsored by the National Science Foundation, the Program on Nonprofit Organizations at Yale University, the Northwest Area Foundation, and the Center for Urban and Regional Affairs at the University of Minnesota. We would like to thank Burton Weisbrod, Andy Van de Ven, and Evelyn Brody for a careful reading of the manuscript. Any shortcomings, of course, are the responsibilities of the authors.
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Galaskiewicz, J., Bielefeld, W. (2003). The Behavior of Organizations. In: Anheier, H.K., Ben-Ner, A. (eds) The Study of the Nonprofit Enterprise. Nonprofit and Civil Society Studies. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-0131-2_13
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