Why Do Private Non-Profit Organizations Provide Information on the Internet?

Social Enterprise Journal (2014), Vol. 10(1), 69-86.

30 Pages Posted: 18 Sep 2015

See all articles by Cynthia Van Hulle

Cynthia Van Hulle

KU Leuven - Department of Applied Economics

Nico Dewaelheyns

KU Leuven - Faculty of Business and Economics (FEB)

Date Written: May 2013

Abstract

Purpose – This research measures information provision on the internet by private non-profit organizations (NPOs) and provides insight in underlying drivers.

Design/methodology/approach – This research involves scoring websites of Belgian NPOs on the basis of their information dissemination and applies univariate and multivariate statistical methods. It also provides two illustrating case studies.

Findings – The drivers of internet information provision in our sample organizations show many similarities to those found for for-profit corporations. However, contrary to the latter, NPOs include little financial information and focus on their goals. Furthermore, in line with the notion that insiders-workers may capture the organization, we find that the degree of professionalization has a significantly negative impact on disclosure. Overall, outside pressures as predicted by neo-institutional theory and agency issues are important in shaping communication of information. In fact the two cases indicate that the pressures as predicted by neo-institutional theory may easily lead NPOs to cater to key stakeholders in much the same way as for-profit corporations cater to customers.

Research limitations/implications – The results are indicative of general forces driving NPO behaviour. Of interest would be a more in depth analysis to link the prevalence of certain forces to specific governance models and to contextual factors.

Practical implications – These findings may give users/visitors of websites better insight into the forces shaping information communication policies of an NPO.

Originality/Value – This paper adds to the scant evidence on internet information provision by private non-profit organizations and its drivers. As such it offers an opportunity to study the forces that are likely shaping decision making within NPOs.

Keywords: Internet information provision, Disclosure, Corporate Governance, Non-profit organisations

JEL Classification: L31, M41

Suggested Citation

Van Hulle, Cynthia and Dewaelheyns, Nico, Why Do Private Non-Profit Organizations Provide Information on the Internet? (May 2013). Social Enterprise Journal (2014), Vol. 10(1), 69-86., Available at SSRN: https://ssrn.com/abstract=2661629

Cynthia Van Hulle

KU Leuven - Department of Applied Economics ( email )

Naamsestraat 69
B-3000 Leuven
BELGIUM
32-16-326734 (Phone)
32-16-326732 (Fax)

Nico Dewaelheyns (Contact Author)

KU Leuven - Faculty of Business and Economics (FEB) ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

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