Faithful Strategies: How Religion Shapes Nonprofit Management

46 Pages Posted: 17 Sep 2013 Last revised: 6 Jun 2014

See all articles by Lapo Filistrucchi

Lapo Filistrucchi

Tilburg University, TILEC; University of Florence, Dipartimento di Scienze Economiche

Jens Prufer

Tilburg University - CentER; Tilburg University - Department of Economics; Tilburg University - Law and Economics Center (TILEC)

Date Written: January 6, 2014

Abstract

This paper studies the strategies employed by Catholic and Protestant nonprofit hospitals in Germany and traces them back to the theological foundations of those religions, which shape managers' values. We find that Catholic nonprofit hospitals follow a strategy of horizontal diversification and maximization of the number of patients treated. By contrast, Protestant hospitals pursue a strategy of horizontal specialization and focus on vertical differentiation, putting in more sophisticated inputs and producing more complex services. These effects increase if the environment of a hospital gets more competitive. The results are consistent with the predictions of our model, which supports the diff erences between Catholic and Protestant values identi ed in the literature.

Keywords: religious values, managers' values, nonprofits, religious organizations, Catholicism and Protestantism

JEL Classification: L31, L21, Z12, D64, I11

Suggested Citation

Filistrucchi, Lapo and Prufer, Jens, Faithful Strategies: How Religion Shapes Nonprofit Management (January 6, 2014). CentER Discussion Paper No. 2013-052, Available at SSRN: https://ssrn.com/abstract=2327087 or http://dx.doi.org/10.2139/ssrn.2327087

Lapo Filistrucchi (Contact Author)

Tilburg University, TILEC ( email )

P.O. Box 90153
Tilburg, Noord-Brabant NL-5000 LE
Netherlands
+31 13 466 3360 (Phone)
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HOME PAGE: http://www.lapofilistrucchi.com

University of Florence, Dipartimento di Scienze Economiche ( email )

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Florence, Florence IT-50127
Italy
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HOME PAGE: http://www.lapofilistrucchi.com

Jens Prufer

Tilburg University - CentER ( email )

P.O. Box 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands

Tilburg University - Department of Economics ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Tilburg University - Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

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