Quotation Speckbacher, Gerhard. 2013. The Use of Incentives in Nonprofit Organizations. Nonprofit and Voluntary Sector Quarterly 42 (5), 1006-1025.




This paper combines research on incentives with nonprofit organization theories to derive three "nonprofit characteristics" that influence the use and effectiveness of incentive mechanisms in nonprofit organizations: the lack of undistorted contractible measures for the organization's overall performance, the relevance of identified employee motivation and the social relationships between the organization and its stakeholders. Building on research from social psychology, the paper argues for a more deliberate use of implicit (i.e. not contractually defines) incentives rather than a shift towards the increased use of performance contracts. Since implicit incentives are often subtle (without the need for formal justification to others) and emergent rather than planned, managers are frequently not aware of these mechanisms, and their deliberate use creates a major challenge.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Nonprofit and Voluntary Sector Quarterly
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new INF-A, MAN-A, STRAT-B, VW-C, WH-B
Language English
Title The Use of Incentives in Nonprofit Organizations
Volume 42
Number 5
Year 2013
Page from 1006
Page to 1025
Reviewed? Y
URL http://nvs.sagepub.com/content/42/5/1006.abstract
DOI http://dx.doi.org/10.1177/0899764012447896


Speckbacher, Gerhard (Details)
Institute for Strategy and Managerial Accounting IN (Details)
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