Diffusion of Nonprofit Organizations from an Internal and an External Perspective

Abstract

IntroductionAs society has become more democratized and decentralized, citizens have been more willing to participate not only in issues in their community, but also in government work. They are also interested in the improvement of public service delivery to address social problems. Recently, the pattern of public service delivery has changed from a hierarchical system to a governance model, in which public service is provided through a complex form of network building with other nongovernmental entities. This is because government programs and regulatory activities directly affect citizens, and government is well supported by citizens only when it performs its activities and carries out its responsibilities well. Public service can be provided through various systems and devices with the private sector, especially when the nonprofit sector's interest in and criticism of public service is rapidly increasing. That is, collaboration with different participants is one of the critical factors that ought to be considered in planning and processes for government policy making that results in positive outcomes and also addresses social problems in the community.Currently, various nonprofit organizations are immersed in the context of governance and are considered a type of collaborator. This is because a nonprofit organization in the community commits to advancing its social responsibility by managing social business, and the forms of collaboration is through the provision of empowerment to community residents. Citizens in the community take over vital services for the greater benefit of their community. Nonprofit organizations in the community have an autonomous and democratic nature. Additionally, profits from their commercial activities are reinvested into the community, and these activities of nonprofit organizations can serve as strong policy tools for addressing community problems with voluntary cooperation from citizens.While the number of nonprofit organizations in the community has increased, there is no previous empirical study which examines why nonprofit organizations are established more in some local governments than others, although several studies have examined the impact of nonprofit organizations on community conditions. This nonprofit organization's diffusion is meaningful to study because: 1) it leads to competition with other public sector services or businesses, and as a result, service quality can been improved; 2) nonprofit organizations bring positive social impacts to the community and local government through the revitalization of communities and the support of disadvantaged groups; and 3) it improves the community through innovations in the form of service.Nonprofit organizations are more likely to appear when severe community conditions are present, such as high unemployment and poverty rates, because nonprofits are often one of the best alternative solutions for a community. Additionally, they might be varied based on financial conditions in local government because nonprofit organizations rely on governmental grants. This is because nonprofits have suffered from revenue shortages as grant money decreases when governments face economic crises. Alternatively, they are initiated by emulating behavior of other neighborhoods and communities as they learn how they work. Thus, this study attempts to examine why nonprofit organizations are more commonly established based upon the financial condition of county governments. The study not only includes variables such as socioeconomic attributes within a county but also considers emulating behavior from neighboring counties.Literature ReviewCollaboration with Nonprofit Organizations: The necessity for changes to the form of public services leads to changes in the way policy is delivered. The form and direction of public service delivery to citizens has stressed increased cooperation and partnerships among various actors such as the government, the private sector, nonprofit organizations, and even citizens themselves. …