Factors Impacting Market Occupancy of Non‐profit Human Service Organizations in the Public Social Service Market: Focused on an Individual Level

Abstract

This study aims to experientially verify which factors of non‐profit human service organizations affect market sharing activities in the public social service market. Due to market‐oriented government policies, non‐profit human service organizations, which used to enjoy stable financial resources, are now placed in a competitive position to provide their services. It is necessary to find out which organizational factors give a competitive advantage to various service providers in competition, including profit organizations, and apply them to the management and operation of non‐profit human service organizations. This is how this study started. Independent variables were organizational characteristics (organization age, total budget, number of employees), externally oriented culture (development culture, rational culture), and organizational structure (centralization, formalization), while dependent variables were the number of vouchers and total profits. Data was collected from 35 community welfare centers, rehabilitation centers, and senior centers (163 respondents) in Busan, Korea. Multiple regression analysis was conducted for data analysis. As a result of the analysis, the number of vouchers was found to be affected by development culture (+) and formalization (−), and total profit from voucher business was determined by organization age (−), total budget (+), and number of employees (+). Based on the results, this study suggests that non‐profit human service organizations should have an externally oriented culture and a flexible organization system to hold more market share in the public social service market.