Top

Social Indicators Research

Published in:

25-03-2016

Costs and Economies of Scale at Not-for-Profit Organizations: The Case of the Santa Casa da Misericórdia de Barcelos Between 2002 and 2013

Authors: Paulo Mourão, Cristiana Enes

Published in: Social Indicators Research | Issue 2/2017

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

In this work, we intend to evaluate the triangular sustainability of not-for-profit organizations, putting a special emphasis on the study of economies of scale. After a collection of raw data from the historical archives of the institution (a ‘Santa Casa da Misericordia de Barcelos’), we constructed a panel database. Using this database, we estimated cobb-douglas costs functions, by applying fixed and random effects. We found that Portuguese institutions as the one here studied (belonging to the Portuguese Social Economy and as a representative of the Holy Houses of Mercy) exhibit economies of scale, which ask for a renewed perspective of the sector by the regulating entities.

previous article Financial Literacy, Portfolio Choice and Financial Well-Being

next article Revolution Impact on Drinking Water Consumption: Real Case of Tunisia

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Available only for authorised users

It is important to notice that, as statistically requested, the main independent variable (lutente) is not highly correlated with the input variables (coefficients lower than 0.70) neither with the prices of input (Amsler et al. 2014). If there were coefficients higher than 0.70 there could appear problems of endogeneity. For confirming the absence of problems of endogeneity among the number of users, the input variables, and the prices of inputs we ran Hausman tests considering as instruments the product between inputs and their prices; and we also got p values lower than 1 % (null hypothesis related to the statistically significance of the used instruments).

Abraham, A. (2004, July 4–6). A model of financial performance analysis adapted for nonprofit organizations. Paper presented at the AFAANZ 2004 conference, Alice Springs, Australia.

Albonico, A., Kalyvitis, S., & Pappa, E. (2014). Capital maintenance and depreciation over the business cycle. Journal of Economic Dynamics and Control, 39, 273–286.CrossRef

Amsler, C., Prokhorov, A., & Schmidt, P. (2014). Endogeneity in Stochastic Frontier Models. BA working paper no: BAWP-2015-01. Business Analytics Working Paper Series, University of Sydney.

Anheier, H. K. (2005). Nonprofit organizations: Theory, management, policy. London: Routledge.

Baltagi, B. (2008). Econometric analysis of panel data (4th ed.). Hoboken: Wiley.

Barbosa Leão, J. (1868). Analyse do Orçamento ou A Questão Financeira Resolvida—Systema de Economias e Reformas por meio das quaes se extinguirá o deficit sendo igualada a receita e a despeza no orçamento para o anno económico de 1869 a 1870 com pequeno sacrifício para todos com notável melhoramento de muitos serviços e sem prejuízo de nenhum. Porto: Typographia de António José da Silva Teixeira.

Baumol, W. J., Panzar, J. C., & Willig, R. D. (1982). Contestable markets and the theory of industry structure. New York: Harcourt Brace Jovanovich.

Boucinha, M., Ribeiro, N., & Weyman-Jones, T. (2010). Uma avaliação da eficiência dos bancos portugueses. In. Relatório de Estabilidade Financeira | Maio 2010 (pp. 125–145). Lisbon: Departamento de Estudos Económicos do Banco de Portugal.

Boyer, R. (2005). Coherence, diversity and evolution of capitalisms: The institutional complementarity hypothesis. Cambridge, MA: Minda de Gunzburg Center for European Studies Working Paper. Harvard University.

Bryson, J. M., Gibbons, M. J., & Shaye, G. (2001). Enterprise schemes for nonprofit survival, growth, and effectiveness. Nonprofit Management & Leadership, 11(3), 271–288.CrossRef

Caramelo, M. D. T. A. (2013). Impacto da crise nas IPSS do Distrito de Coimbra. Unpublished master thesis in sociology. University of Coimbra, Portugal.

Carneiro, M. (2006). A Economia Social em Portugal. In M. Pérez de Uralde & M. R. Rubio (Eds.), La Economía Social en Iberoamérica—un Acercamiento a su Realidad (pp. 233–255). Valencia: Fundación Iberoamericana de la Economía Social.

Carreira C. (1999). Economias de escala e de gama nos hospitais públicos Portugueses: Uma aplicação da função de custo variável translog. Discussion Paper No. 1. Portugal: University of Coimbra, Grupo de Estudos Monetários e Financeiros.

Chandler, Alfred Dupont. (1990). Strategy and structure: Chapters in the history of the industrial enterprise. Cambridge, MA: MIT Press.

Colonna, J. T., & Mourão, P. R. (2011). Factores de Localización de las Cofradías Religiosas en Actividad: una Investigación a Orillas del Atlántico y el Pacífico. Scripta Nova – revista de Geografia y Ciencias Sociales, 12, 81–102.

Connolly, T., Conlon, E. J., & Deutsch, S. J. (1980). Organizational effectiveness: A multiple-constituency approach. Academy of Management Review, 5(2), 211–218.

Deeg, R. (2005). Complementarity and institutional change: How useful a concept? Discussion paper SP II 2005-21. Germany: Wissenschaftszentrum Berlin für Sozialforschung.

Direção-Geral da Saúde. (2014). Portugal Idade Maior em Números—2014: A Saúde da População Portuguesa com 65 ou mais anos de idade. Lisboa.

Elkington, J. (1998). Cannibals with forks: The triple bottom line of the 21st century. Gabriola Island, BC: New Society Publishers.

Farrel, M. J. (1957). The measurement of production efficiency. Journal of the Royal Statistical Society, Series A, Part III, 120(3), 253–290.CrossRef

Franco, R. C., Sokolowski, S. W., Hairel, E. M., & Salamon, L. M. (2002). The Portuguese nonprofit sector in comparative perspective. Johns Hopkins University.

Greene, W. H. (2008). The econometric approach to efficiency analysis. In H. O. Fried, C. A. Knox Lovell, & S. S. Schmidt (Eds.), The measurement of productive efficiency and productivity growth (pp. 92–229). New York: Oxford University Press.

Hartarska, V., Shen, X., & Mersland, R. (2013). Scale economies and input price elasticities in microfinance institutions. Journal of Banking & Finance, 37(1), 118–131.CrossRef

Herlin, H., & Pazirandeh, A. (2012). Nonprofit organizations shaping the market of supplies. International Journal of Production Economics, 139(2), 411–421.CrossRef

Hespanha, P., Ferreira, S., & Pacheco, V. (2013). O Estado Social, crise e reformas. In: Relatório Preliminar do Observatório das Crises e Alternativas—Anatomia da crise: identificar os problemas para construir as alternativas, pp. 161–242.

Instituto Nacional de Estatística, I.P. (INE) & Cooperativa António Sérgio para a Economia Social, CIPRL (CASES). (2013). Conta Satélite da Economia Social 2010.

Jones, K. R., & Mucha, L. (2014). Sustainability Assessment and reporting for nonprofit organizations: Accountability “for the Public Good”. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 25(6), 1465–1482.

Kaplan, R. S. (2001). Strategic performance measurement and management in nonprofit organizations. Nonprofit Management & Leadership, 11(3), 353–370.CrossRef

Levine, H., & Zahradnik, A. G. (2012). Online media, market orientation, and financial performance in nonprofits. Journal of Nonprofit & Public Sector Marketing, 24(1), 26–42.CrossRef

Manetti, G., & Toccafondi, S. (2014). Defining the content of sustainability reports in nonprofit organizations: do stakeholders really matter? Journal of Nonprofit & Public Sector Marketing, 26(1), 35–61.CrossRef

Marques, W. L. (2013). Análise de custos: utilizado em ciências contábeis e administração. Paraná: Gráfica Vera Cruz.

Mata, J. (2002). Economia da Empresa (2nd ed.). Lisbon: Fundação Calouste Gulbenkian.

Murray, V. (2001). The state of evaluation tools and systems for nonprofit organizations. New Directions for Philanthropic Fundraising, 2001(31), 39–50.CrossRef

Penteado, P. (2004). A Investigação em sistemas de arquivo organizacionais: algumas reflexões sobre o caso das Misericórdias de Portugal. In Homenagem ao Professor Doutor José Marques (pp. 141–163). University of Porto.

Ribeiro, M. (2006). Economia da escala e de gama e os efeitos da concentração na eficiência bancária. Unpublished doctoral dissertation, University of Minho, Braga, Portugal.

Schmidt, P., & Lovell, C. K. (1979). Estimating technical and allocative inefficiency relative to stochastic production and cost frontiers. Journal of econometrics, 9(3), 343–366.CrossRef

Sharir, M., & Lerner, M. (2006). Gauging the success of social ventures initiated by individual social entrepreneurs. Journal of World Business, 41(1), 6–20.CrossRef

Shimizutani, S., & Suzuki, W. (2002). The quality and efficiency of at-home long-term care in Japan: Evidence from micro-level data. Discussion paper series No. 18. Economic and Social Research Institute, Tokyo.

Sousa, S. et al. (2012). As Instituições Particulares de Solidariedade Social num contexto de crise económica. Lisbon, Portugal: IPI-consulting network Portugal, Confederação Nacional de Instituições de Solidariedade (CNIS) & Millennium BCP Foundation.

União das Misericórdias Portuguesas (2012). Retrieved July 26, 2012, from www.ump.pt.

Valentinov, V. (2008). The economics of nonprofit organization: In search of an integrative theory. Journal of Economic Issues, 17(3), 745–761.CrossRef

Weerawardena, J., McDonald, R. E., & Mort, G. S. (2010). Sustainability of nonprofit organizations: An empirical investigation. Journal of World Business, 45(4), 346–356.CrossRef

Yetman, R. J. (2007). Borrowing and Debt. In D. R. Young (Ed.), Financing nonprofits: Putting theory into practice (pp. 243–268). Lanham, MD: Altamira Press.

Title: Costs and Economies of Scale at Not-for-Profit Organizations: The Case of the Santa Casa da Misericórdia de Barcelos Between 2002 and 2013
Authors: Paulo Mourão
Cristiana Enes
Publication date: 25-03-2016
Publisher: Springer Netherlands
Published in: Social Indicators Research / Issue 2/2017
Print ISSN: 0303-8300
Electronic ISSN: 1573-0921
DOI: https://doi.org/10.1007/s11205-016-1315-4

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Other articles of this Issue 2/2017

An Indicator for the Measurement of Political Participation: The Case of Italy

Measuring Temporal Dimensions of the Intensity of Violent Political Conflict

Theory and Measurement in Social Capital Research

Stability and Change in Youths’ Political Interest

The Implications of Ethnicity, Gender, Urban–Rural Residence, and Socioeconomic Status for Progress Through School among Children in Nigeria

Poverty and Old Age in Scandinavia: A Problem of Gendered Injustice? Evidence from the 2010 GERDA Survey in Finland and Sweden