IDEAS home Printed from https://ideas.repec.org/a/bla/annpce/v79y2008i1p35-52.html
   My bibliography  Save this article

The Economics Of The Non‐Distribution Constraint: A Critical Reappraisal

Author

Listed:
  • Vladislav VALENTINOV

Abstract

ABSTRACT**: This paper re‐examines the non‐distribution constraint as a key structural feature of non‐profit organization. It argues that its traditional understanding as a trustworthiness‐enhancing device is incomplete. This paper shows that the non‐distribution constraint is also a reflection of the directly utility‐enhancing character of involvement in non‐profit firms for their key stakeholders. This alternative explanation allows one to solve the central puzzle of trustworthiness theory: why doesn't the non‐distribution constraint destroy entrepreneurial motivation? Additionally, it helps one to understand the role of the non‐distribution constraint in economic theories of non‐profit organization that do not rely on trustworthiness theory. Finally, it enables one to logically integrate the different economic theories of non‐profit organization.

Suggested Citation

  • Vladislav VALENTINOV, 2008. "The Economics Of The Non‐Distribution Constraint: A Critical Reappraisal," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 79(1), pages 35-52, March.
    • Handle: RePEc:bla:annpce:v:79:y:2008:i:1:p:35-52
    DOI: 10.1111/j.1467-8292.2007.00351.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-8292.2007.00351.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-8292.2007.00351.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Adalbert Evers & Jean-Louis Laville, 2004. "Defining the third sector in Europe," Chapters, in: Adalbert Evers & Jean-Louis Laville (ed.), The Third Sector in Europe, chapter 1, Edward Elgar Publishing.
    2. Petra Brhlikova & Andeas Ortmann, 2006. "The Impact of the Non-distribution Constraint and Its Enforcement on Entrepreneurial Choice, Price, and Quality," CERGE-EI Working Papers wp299, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    3. Jeffrey P. Ballou, 2005. "An Examination of the Presence of Ownership Effects in Mixed Markets," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 21(1), pages 228-255, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gabriela Vaceková & Zuzana Prouzová, 2014. "Non-profit Commercial Revenues. Evidence from the Czech Republic," MUNI ECON Working Papers 16, Masaryk University, revised Dec 2014.
    2. Sacchetti, Silvia & Tortia, Ermanno, 2012. "The internal and external governance of cooperatives: the effective membership and consistency of value," AICCON Working Papers 111-2012, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    3. Valentinov, Vladislav & Vaceková, Gabriela, 2015. "Sustainability of Rural Nonprofit Organizations: Czech Republic and Beyond," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 7(8), pages 9890-9906.
    4. Silvia Sacchetti & Ermanno C. Tortia, 2010. "A NEW FRAMEWORK FOR THE ECONOMIC ANALYSIS OF COOPERATIVE FIRMS: Self-defined rules, common resources, motivations, and incentives," Econometica Working Papers wp21, Econometica.
    5. Vladislav Valentinov & Gabriela Vaceková, 2015. "Sustainability of Rural Nonprofit Organizations: Czech Republic and Beyond," Sustainability, MDPI, vol. 7(8), pages 1-17, July.
    6. Sacchetti, Silvia & Tortia, Ermanno, 2013. "The Silver Lining Of Cooperation," AICCON Working Papers 125-2013, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    7. Thieme, Lutz & Falk, Rüdiger, 2021. "Zur Entwicklung von Vergütungssystemen in deutschen Großsportvereinen," Working Papers of the European Institute for Socioeconomics 35, European Institute for Socioeconomics (EIS), Saarbrücken.
    8. Vladislav Valentinov, 2012. "Toward a holistic nonprofit economics: insights from institutionalism and systems theory," Journal of Bioeconomics, Springer, vol. 14(1), pages 77-89, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erwan Queinnec, 2011. "Do Not-For-Profit Organizations Meet A Demand For Trust Goods ? A Reappraisal Of The Contract Failure Theory [Resoudre Un Probleme D’Asymetrie D’Information En S’Abstenant De Faire Du Profit : Les ," Working Papers hal-01367931, HAL.
    2. Erwan Queinnec, 2011. "Do Not-For-Profit Organizations Meet A Demand For Trust Goods ? A Reappraisal Of The Contract Failure Theory [Resoudre Un Probleme D’Asymetrie D’Information En S’Abstenant De Faire Du Profit : Les ," CEPN Working Papers hal-01367931, HAL.
    3. Noel Castree & David J. Keeling & Jerald Podair & Michael Pryke & Duncan W. Scott & Paul Lambe & Robert McMaster & Michael Slivka, 2005. "Book Reviews," Urban Studies, Urban Studies Journal Limited, vol. 42(8), pages 1471-1484, July.
    4. Alexia Gaudeul, 2008. "Consumer Welfare and Market Structure in a Model of Competition between Open Source and Proprietary Software," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2008-31, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    5. Katrin Martens & Sebastian Rogga & Jana Zscheischler & Bernd Pölling & Andreas Obersteg & Annette Piorr, 2022. "Classifying New Hybrid Cooperation Models for Short Food-Supply Chains—Providing a Concept for Assessing Sustainability Transformation in the Urban-Rural Nexus," Land, MDPI, vol. 11(4), pages 1-24, April.
    6. Lamberto Zollo & Maria Carmen Laudano & Andrea Boccardi & Cristiano Ciappei, 2019. "From governance to organizational effectiveness: the role of organizational identity and volunteers’ commitment," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(1), pages 111-137, March.
    7. Yves Vaillancourt, 2009. "Social Economy In The Co‐Construction Of Public Policy," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 80(2), pages 275-313, June.
    8. Tony Gore & Ryan Powell & Peter Wells, 2006. "The contribution of rural community businesses to integrated rural development: “Local services for local people”," Post-Print hal-01201127, HAL.
    9. Giacomo Manetti & Simone Toccafondi, 2013. "Il coinvolgimento degli stakeholder nella governance e nel reporting delle fondazioni bancarie," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2013(3), pages 51-76.
    10. Sylvie Paré & Ralph Christian Maloumby-Baka, 2015. "The Role of Public-Third Sector Relationships in Solving Social Issues: the Case of One-Stop-Shop Service for the Promotion of Female Immigrant Entrepreneurship in Montreal," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 3(3), pages 123-141.
    11. Davey, Ryan, 2019. "Financialised welfare and its vulnerabilities: advice, consumer credit, and church-based charity in the UK," LSE Research Online Documents on Economics 102287, London School of Economics and Political Science, LSE Library.
    12. Alex Nicholls, 2010. "The Legitimacy of Social Entrepreneurship: Reflexive Isomorphism in a Pre–Paradigmatic Field," Entrepreneurship Theory and Practice, , vol. 34(4), pages 611-633, July.
    13. Thomas Sauer & Stephanie Barnebeck & Yannick Kalff & Judith Schicklinski, 2015. "ROCSET – The Role of Cities in the Socio-Ecological Transition of Europe. WWWforEurope Working Paper No. 93," WIFO Studies, WIFO, number 58134, July.
    14. Ruth Wanjiku Muriithi & Teresia Kyalo & Josphat Kinyanjui, 2019. "Entrepreneurial Orientation, Organisational Culture Adaptability And Performance Of Christian Faith-Based Hotels In Kenya," International Journal of Entrepreneurial Knowledge, Center for International Scientific Research of VSO and VSPP, vol. 7(1), pages 31-45, June.
    15. Valentinov, Vladislav, 2009. "Managerial nonpecuniary preferences in the market failure theories of nonprofit organisation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 36(1/2), pages 81-92.
    16. Dufour, Bryan, 2019. "Social impact measurement: What can impact investment practices and the policy evaluation paradigm learn from each other?," Research in International Business and Finance, Elsevier, vol. 47(C), pages 18-30.
    17. Lin Qi & Huamin Peng & Ruiwen Sun, 2022. "Examining Family Living Arrangements, Economic Development, Education Expenditure and Children’s Weight from the Welfare Mix in China," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(5), pages 2673-2695, October.
    18. Evers, Natasha & Ojala, Arto & Sousa, Carlos M.P. & Criado-Rialp, Alex, 2023. "Unraveling business model innovation in firm internationalization: A systematic literature review and future research agenda," Journal of Business Research, Elsevier, vol. 158(C).
    19. Cace, Sorin, 2010. "Good Practices in Social Economy in Greece and in Other States of the European Union," MPRA Paper 79940, University Library of Munich, Germany.
    20. Emiliana Mangone, 2015. "(English) The Relational Know for a New Configuration of Civil Society (Italiano) Il sapere relazionale per una nuova configurazione della società civile," IRPPS Working Papers 78:2015, National Research Council, Institute for Research on Population and Social Policies.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:annpce:v:79:y:2008:i:1:p:35-52. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1370-4788 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.