Marc Jegers

Challenges in Managing Nonprofit Organizations: A Research Overview

The topic of “management” and nonprofit organizations (NPOs) continues to fascinate scholars. This paper draws on varying theoretical perspectives to explore their respective contributions to our knowledge of NPOs. The two longstanding and contrasting disciplines of economics and sociology have contributed most, traditionally, to the study of NPOs. However, neither of these disciplines has resolved all the dilemmas associated with NPOs. The standard economic model does not apply well to the distinctive nonmarket situation of NPOs. The sociological perspectives offer interesting insight, but fail to develop plans of action for NPOs. However, both of these traditional perspectives are starting to be eclipsed by the focus on marketing research.

Trade Credit, Corporate Groups, and the Financing of Belgian Firms

We investigate the role of trade credit as a source of financing. Using a sample of 661 large non-financial Belgian firms for the 1989-1991 period, we find that the amount of trade credit a buyer takes is determined by his need for funds and the internally available funds. Trade credit is primarily used to finance short-term assets. As such, it seems to be an important alternative not only for short-term bank debt but also for long-term financial debt, including intragroup debt. We find no evidence that the amount of trade credit taken is influenced by affiliation with the supplier. Copyright Blackwell Publishers Ltd 1999.

A typology for provider payment systems in health care

A typology to classify provider payment systems from an incentive point of view is developed. We analyse the way, how these systems can influence provider behaviour and, a fortiori, contribute to attain the general objectives of health care, i.e. quality of care, efficiency and accessibility. The first dimension of the typology indicates whether there is a link between the providers income and his activity. In variable systems, the provider has an ability to influence his earnings, contrary to fixed systems. The second dimension indicates whether the providers payments are related to his actual costs or not. In retrospective systems, the providers own costs are the basis for reimbursement ex post whereas in prospective systems payments are determined ex ante without any link to the real costs of the individual provider. These different characteristics are likely to influence provider behaviour in different ways. Furthermore the most frequently used criteria to determine the providers income are discussed: per service, per diem, per case, per patient and per period. Also a distinction is made between incentives at the level of the individual provider (micro-level) and the sponsor (macro-level). Finally, the potential interactions when several payment systems are used simultaneously are discussed. This typology is useful to classify and compare different types of payment systems as prevailing in different countries, and provides a useful framework for future research of health care payment systems.

The Governance of Nonprofit Organizations Integrating Agency Theory With Stakeholder and Stewardship Theories

The purpose of this article is to provide a more comprehensive principal–agent theory of nonprofit organizations by combining agency theory with aspects of stakeholder theory, stewardship theory, and empirical literature on the governance and management of nonprofit organizations. First, the use of a stakeholder perspective allows us to identify the principals of a nonprofit organization and to divide nonprofit principal–agent relationships into different categories. Next, we discuss the assumptions and prescriptions of agency theory and stewardship theory and suggest that a complementary use of these theories can contribute to the research of principal–agent relationships. By discussing empirical literature from a stewardship–agency perspective, we are able to address issues of nonprofit accountability. We conclude by giving suggestions for further research and by stressing the importance of a recruitment policy to avoid internal agency problems.

Prospect Theory and The Risk-Return Relation: Some Belgian Evidence

In this study, Fiegenbaum and Thomas’s application of prospect theory to empirically derived risk-return relations was replicated and extended with Belgian accounting data. Four profitability varia...

Trade Credit, Product Quality, and Intragroup Trade: Some European Evidence

Marc Deloof is Assistant Professor of Finance. Marc Jegers is Professor of Accounting and Finance. Both are at the Free University of Brussels (VUB). Long, Malitz, and Ravid (1993) proposed a model based on the idea that the major purpose of trade credit is to allow buyers to assess the quality of the firms products before paying. In this paper, we apply a similar methodology not only using a sample of industrial firms, but also a sample of Belgian wholesale distribution firms. Furthermore, we develop and test two additional hypotheses, based on the observation that industrial and financial groupings play an important role in the Belgian economy. While our results partially confirm the four hypotheses of Long et al., we find evidence that a firm selling to a linked customer extends trade credit for reasons other than assessing product quality. We find that when a firm has a shortage of cash, investment in accounts receivable from linked firms is reduced. An excess of cash does not seem

A Cross-Sector Comparison of Motivation-Related Concepts in For-Profit and Not-For-Profit Service Organizations

This contribution examines differences in four motivation-related concepts between employees in not-for-profit and for-profit sector service organizations. Using regression analyses, 630 knowledge workers, employed in either the not-for-profit or the for-profit sector, were compared. The majority of the hypotheses were supported by the data. Even after the impact of gender, age, seniority, contract type, and task characteristics were controlled for, employees from both sectors differed significantly. Not-for-profit workers valued more social service, perceived a better person—organization fit, and were more motivated by identified and integrated regulation. Their for-profit counterparts valued more advancement and were more motivated by external regulation. These conclusions account for a broad range of activities within the service industry because a wide variety of organizations were included in the study.

Equity sales in Belgian corporate groups: expropriation of minority shareholders? A clinical study

In Belgian corporate groups, complex pyramidal structures and interlocking ownership lead to separation of ownership and control. This may generate incentives for the controlling shareholder to divert resources within the group through intragroup equity sales. This in turn could lead to significant private benefits at the expense of the minority shareholders. We test this hypothesis by investigating the stock price reaction to the announcement of equity sales in Belgian groups. Our results suggest that intragroup equity sales create value for minority shareholders. Equity sales between group members and non-group members do not seem to affect the value for minority shareholders in Belgian groups.

Competitive intelligence: construct exploration, validation and equivalence

Purpose – Little empirical research has been conducted on competitive intelligence (CI). This paper aims to contribute to the quantitative strand of the CI literature by exploring and validating the theoretical constructs of the CI process.Design/methodology/approach – Data from 601 questionnaires filled out by South African and Flemish exporters were subjected to exploratory factor analysis and construct equivalence analysis between the sub‐samples.Findings – The results showed that the CI process consists of three constructs, while the context in which CI takes place consists of four constructs. This agrees to some extent with the literature. When verifying the constructs for both cultures it was found that all but one CI context construct can be viewed as equivalent in both groups. Bias analysis identified one item in the questionnaire that was biased. Via regression analysis it was also indicated that the context in which CI takes place influences the CI process to a large extent. The research identif...

Freshmen in nursing: job motives and work values of a new generation

AIM To identify the features young nurses look for in their job (job motives) and the features they look for in work in general (work values). BACKGROUND In view of the shortage of appropriately educated and motivated nurses, a study of the motivational profile of the new generation nurses may provide additional insights. METHOD In a survey, 344 newly graduate Belgian nurses were questioned. RESULTS AND CONCLUSIONS Results indicate that many of the traditional attractions are still important, with the recurrent issue of altruism. Furthermore, men are found to be more attracted by career opportunities, executive powers and autonomy, while women tend to attach more importance to interpersonal characteristics. IMPLICATIONS FOR NURSING MANAGEMENT When considering the new generation nurses, budget cuts and restructuring must be handled with prudence, due to the risk of crowding out the altruistic and interpersonal work features, which determine the specificity of the nursing job.