Faithful Strategies: How Religion Shapes Nonprofit Management
AbstractAbstract: This paper studies the strategies employed by Catholic and Protestant nonprofit hospitals in Germany and traces them back to the theological foundations of those religions, which shape managers' values. We find that Catholic nonprofit hospitals follow a strategy of horizontal diversification and maximization of the number of patients treated. By contrast, Protestant hospitals pursue a strategy of horizontal specialization and focus on vertical differentiation, putting in more sophisticated inputs and producing more complex services. The results are consistent with the predictions of our model, which supports the differences between Catholic and Protestant values identified in the literature.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2013-052.
Date of creation: 2013
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religious values; managers' values; nonprofits; religious organizations; Catholicism and Protestantism;
Find related papers by JEL classification:
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
- L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
- Z12 - Other Special Topics - - Cultural Economics - - - Religion
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-02 (All new papers)
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