Korean Nonprofit Organizations Research Articles

The impact of external evaluation on donations to nonprofit organizations: Evidence from Korea

AbstractThis study examines whether and to what extent each stage of evaluation by a nonprofit agency impacts donation revenue. We test the effects of the Korean evaluation agency's scoring, selection, and ratings disclosure stages on nonprofit organizations' future donations. Using a sample of Korean nonprofit organizations for 2017–2018, we find that the governance and financial performance scores constructed by the agency in the scoring stage are positively correlated with nonprofit organizations' future donations. We also find a positive correlation between selection by the agency during the selection stage and future donations to the selected organizations. Finally, we show that the star ratings disclosed by the agency in the ratings disclosure stage do not impact future donations because ratings are predicted by the governance and financial performance scores. Our results imply that the scoring and selection stages have strong positive signal effects on donors, whereas the ratings disclosure stage does not. These findings suggest that to help donors make decisions about resource contributions, external nonprofit agencies must primarily focus on improving the scoring methodology and selection criteria.

Effect of blockchain-based donation system on trustworthiness of NPOs

Donation-phobia has been spreading across several Korean nonprofit organizations (NPOs) because of donation-related scandals. This study analyzes whether blockchain-based donation system (BDS) can resolve this problem by enhancing NPOs’ trustworthiness. This study examined the effects of the following three features of BDS: transparency, immutability, and efficiency, along with their subsequent effects on formation of NPOs’ trustworthiness. Accordingly, information on NPOs’ activities was offered using a BDS with a two-group post-test-only design. The results demonstrated that information provided on the BDS site enhanced the three features of the BDS, which improved the trustworthiness of the NPO.

Mechanisms of perceived accountability in Korean NPOs: activating the dynamics of NPM-driven and confucian-driven cultures

Non-profit organizations (NPOs) have been recognized as critical performers not only in the enhancement of social values and civic integration but also in the construction of a global civil society, which can impact shareholders’ policies and conventions. To examine how NPOs perform in this manner, this study follows two paths: (1) it empirically examines how public service motivation and organizational culture can enhance perceived accountability through hierarchical multivariate regression; and (2) it provides statistical results and presents future research directions through network analysis using interviews with experts. Finally, we report the results of the analysis and suggest useful theoretical and practical implications for future research on NPOs.

The Roles of Strategic Human Resource Management and Person–Environment Fit On Nonprofit Public Service Motivation

This study examines the relationship between public service motivation (i.e., intrinsically and voluntarily driven attitudes and dispositions), strategic human resource management, and person–environment fit in Korean nonprofit organizations in order to determine the ways by which both the motivation of employees and the performance of these organizations can be enhanced. This was done using data from a survey on Korean nonprofit organizations employees conducted in 2013. The results show a direct, positive, and significant association between strategic human resource management and person–environment fit, a direct and positive association between person–environment fit and the affective and normative nonprofit public service motivation aspects of nonprofit public service motivation, and a mediating role of person–environment fit in the relationship between strategic human resource management and affective and normative nonprofit public service motivation.

공익법인의 회계정보가 기부자의 기부의사결정에 미치는 영향 : 예산집행 정보와 회계품질을 중심으로

공익법인의 회계정보가 기부자의 기부의사결정에 미치는 영향 : 예산집행 정보와 회계품질을 중심으로

Https://js.sagamorepub.com/jnel/article/view/9596

With an aim to articulate the reason of existence of nonprofit/nongovernmental (NPO/NGO) higher education in South Korea, this study examines the curriculum of NPO/NGO management programs in higher education institutions. This study postulates that the higher education curriculum in NPO/NGO management may reflect the main forces that have led to the development and evolution of South Korean nonprofit organizations, framed as social movement and entrepreneurial management. South Korea has showcased a civil-society-led democratization model. Its nonprofit organizations have faced an increased pressure for professional service provision and sustainable operation. This study proposes that the social movement drive outweighed the entrepreneurial management drive regarding the visibility in the NPO/NGO higher education. Recent program changes show that the entrepreneurial management drive has been strengthened in their curriculum. This study also observes a preferential pattern of ties to societal forces by disciplines.Subscribe to JNEL

How to Encourage Employees’ Acceptance of Performance Appraisal Systems in Korean Nonprofit Organizations? An Empirical Exploration of the Influence of Performance Monitoring Systems and Organizational Culture

As the consequences of the raise in the roles that nonprofit organizations play in providing public services, there is a need to generate solutions for the financial scandals involving nonprofit organizations that have ensued. Nonprofit organizations receive government funding as “third-party agents” of the government to deliver the meaningful outcomes required on performance measures. Many nonprofit organizations utilize performance appraisal systems to improve their accountability and demonstrate organizational trustworthiness. This study employs confirmatory factor analysis and hierarchical multiple regression to examine data from the 2013 Korean Nonprofit Sector Survey. The results are as follows: (a) The current human resources and organizational monitoring systems in Korea play the most significant role in increasing employees’ acceptance of performance appraisal systems (APAS); (b) Korean nonprofit organizations’ new public management (NPM) culture is positively associated with APAS; and (c) the type of organizational culture (NPM or Confucian) moderates the relationship between performance monitoring systems (PMS) and APAS among nonprofit organization employees.

Resource Dependence Patterns and Organizational Behavior/Structure in Korean Nonprofit Organizations

This article examines the relationships among the three dimensions of resource dependence patterns (RDPs) and organizational formalization and goals in nonprofit organizations (NPOs). These three RDPs (that is, the appearance of the financial resource inflow) are resource dependency, resource diversity, and resource competitiveness. The empirical findings suggest that high dependency on government funding (high resource dependency) is positively associated with organizational formalization, although resource diversity does not have any explanatory power on organizational behavior and structure, and that a very competitive environment for resource acquisition significantly affects goal setting in NPOs. In particular, resource competitiveness well explains goal clarity and goal change in NPOs. NPOs with high resource competitiveness present clearer organizational goals or missions and are likely to experience frequent goal change.

Antecedents and outcomes of non-profit public service motivation in Korean NPOs

Purpose – The purpose of this paper is to investigate the role of non-profit service motivation (NPSM) as a cognitive dimension in the enhancement of managerial accountability of Korean NGO employees. Hypotheses and a research model were designed to determine the antecedent and consequence factors of NPSM from the perspective of the self-determinants theory, social learning theory, and social exchange theory. Design/methodology/approach – This study relies on quantitative data obtained from Korean NGO survey questionnaires. The sample consists of 400 employees working for NGOs. The performance evaluations were conducted within a one-year period. Findings – Results of the study demonstrate that training and development are the keys to leading employees’ value congruence and motivation. The authors also confirmed that person-organizational (P-O) fit is directly associated with NPSM. Finally, intrinsically motivated NGO employees would boost the level of managerial accountability among the Korean NGO employees through organization and socialization. Research limitations/implications – Through applying Perry’s original public service motivation (PSM) scale including rational, normative, and affective values, the exploratory factor analysis and confirmatory factor analysis results confirmed that the constructs of NPSM were valid and reliable in the Korean NGOs. Additionally, it might also explain the locus of causality of self-determination theory, and how it changes people’s motivation. Finally, the authors confirmed that organizational systems are notable in terms of increasing P-O fit, strengthening intrinsic motivation, and increasing organizational consequences. Practical implications – This study confirms that human resource development (HRD) practices and performance management system (PMS) act as very effective managerial tools for nurturing positive and constructive social exchange relationships between organizational constituents, and for developing human resources in the NGOs. This is evident in cases of individuals being given extensive participation rights when it comes to decision making (Leana et al., 1992; Mayer and Schoorman, 1998). The benefit of this reality is twofold: it strengthens individuals’ perceptions of self, fostering intrinsic motivation, and it also acts as a buffer of sorts between individuals and external pressures, weakening extrinsic motivation. Social implications – There exists a notion that well-made organizational systems and policies should be regarded as more important because certain informal or relational social interactions and communications (e.g. HRD programs) or PMS policies (e.g. service monitoring systems, finance monitoring systems, and HR and organizational monitoring systems) prevail in the cultural characteristics of NGOs. Based on this notion, allowing P-O fit, intrinsic motives, and accountable behaviors to function as invisible but very persuasive norms, rules, and informal regulations for leaders and subordinates will help make NGOs successful. Originality/value – Given that most Korean non-profit organizations are very small and lack formal HR departments or functions, it is possible that this lack of formality has been somewhat responsible for the shortage of research on the outstanding aspects and issues surrounding non-profit HR management and the motivation of non-profit employees. However, as the non-profit sector has become more professionalized and specialized in terms of training, development, and identity, the need to understand HR issues and employee motivation is vital to improve both employee management and organizational strategies. The aim of this research is to further the understanding of what makes the non-profit workforce distinct. The authors believe that the similarities in terms of motivation for public and non-profit employees allowed us to use a modified version of Perry’s (1996) scale in the study to examine NPSM. However, drawing on these various and diverse perspectives on PSM and NPSM, especially in the Korean context, the authors define NPSM as “intrinsically and voluntarily driven attitudes and dispositions that lead to more service delivery, fundraising, and volunteering activities in the non-profit agencies.”

Antecedents and outcomes of acceptance of performance appraisal system in Korean non-profit organizations

ABSTRACTThis study identifies the antecedents of non-profit public service motivation (NPSM) and employee outcomes using Korean non-profit acceptance of performance appraisal system (APAS) survey data. We test an NPSM model and examine the concept through public service motivation (PSM) in the non-profit sector. We then apply findings on work motivation, PSM, and performance appraisal systems to quantitative research and test several hypotheses concerning how (1) the non-profit sector’s APAS affects and uniquely shapes non-profit workers’ motivation, (2) NPSM relates to organizational trust, and (3) organizational characteristics affect Korean non-profit employees. We discuss our findings’ implications for non-profit theory and practice.

Assessing the effects of learning organization characteristics in Korean non-profit organizations: Focusing on the association with perceived financial performance and employee satisfaction

During the last decade in Korea, non-profit organizations (NPO) have shown incredible growth in both their number and size due to the development of civil society and government-subsidizing policies. Most registered NPOs are subsidized by the government but their learning capacities and financial performance in meeting new social needs in an innovative manner is somewhat limited and even less sustainable. In this article, the authors assume that the learning organization characteristics of NPOs influence their levels of performance and employee satisfaction. An analytical framework that enables a better understanding of the relationship between learning organization and perceived financial performance is proposed. On the basis of the proposed framework, the hypothesis that the learning organization characteristics improve the financial performance of NPOs is empirically tested. The analysis results confirmed that the learning organization characteristics enhance financial performance and employee satisfaction.

Buenas prácticas de sostenibilidad financiera: El caso del desarrollo acelerado de las organizaciones no lucrativas coreanas

El éxito de las Beyoungri Danche depende de las estrategias financieras que sus líderes utilizan para hacerlas sostenibles en el tiempo. La recopilación de buenas prácticas de las Beyoungri Danche coreanas en la literatura y una investigación exploratoria de contenidos web de tres organizaciones exitosas, permite aprender tácticas de otra cultura que ha demostrado un alto nivel organizacional y fortalecer el diálogo alrededor de un tema de interés común.

Accountability in Korean NPOs: Perceptions and Strategies of NPO Leaders

This study examines how senior managers of Korean nonprofit organizations construe their accountability environment, particularly with respect to the perceived expectations of various stakeholders. In-depth interviews were conducted with 42 nonprofit executives in Seoul and six other major Korean cities. Subsequent surveys were completed by 271 organizations. The interview results were used to construct a survey instrument to generalize the findings. The findings suggest that executives of South Korean NPOs perceive board members, staff members, and government agencies as their top three significant stakeholders to whom they are accountable. Regarding the important question of “for what” they are accountable, the respondents emphasized compliance to legal obligations and observance of democratic principles of organizational operation. This study also identified four common components in South Korean NPO accountability obligations: professional integrity, civic engagement, and inter-organizational partnership (civic activism-oriented and professionalism-oriented).

Exploring characteristics of innovative nonprofit organizations in South Korea

The purpose of this study was to explore how employees of Korean nonprofit organizations perceived characteristics of innovative organizations. The social-validation method (first, an open-ended question is given; and later, ideas collected from participants are used to make an instrument) was used to collect the data. Thirteen employees representing a variety of nonprofit organizations in South Korea participated in this study. At the first stage of the study, participants were asked to generate a list of characteristics of innovative organizations. A total of 125 characteristics of innovative nonprofit organizations were summarized into the 25 most often mentioned characteristics. At the second stage of the study, all participants were asked to rate each of the characteristics on how important they were for an innovative organization. Among the highest-ranked characteristics of innovative organizations were: having a clear organizational vision and mission statement, having transparent financial and accounting processes, having a leader who is open-minded and flexible, being responsive to clients’ needs, and having employees who share the vision and mission of the organization. The pattern of agreement among participants indicated a low degree of consensus. Implications were suggested based on the findings.

Impact of Red Tape on Organizational Performance in Korean Nonprofit Organizations

Impact of Red Tape on Organizational Performance in Korean Nonprofit Organizations

Understanding Challenges and Opportunities in the Nonprofit Sector in Korea

This paper reviews the growth of the nonprofit sector in Korea and discusses its challenges and opportunities. During the past two decades nonprofit organizations in Korea have developed faster than those in other countries and became core players to substantially influence Korean society. Korean nonprofit organizations have traditionally emphasized an advocacy role in promoting human rights and democracy and checking and safeguarding against the abusive powers of government and big business. Compared with Western countries’ nonprofits, Korean nonprofit organizations have a short history and distinctive historical and cultural experiences and contexts. This paper argues that, to better understand challenges and opportunities faced by the nonprofit organizations in a country, we need to review the historical and cultural contexts from which the nonprofit organizations in the country emerge, rather than apply definitions and conceptions about Western nonprofits unreflectively to other societies, such as Korea.