Uncovering the Blurring of Sectors: A Comparison of Perceived Organizational Values between the Public and Nonprofit Sectors

Abstract

It has long been recognized that the boundary between the public and nonprofit sectors is blurred because the top priority of agencies in both sectors is to serve the public interest, rather than to maximize the profits of agencies and stakeholders. This research attempts to highlight the differences between the sectors by comparing the perceptions of public sector and nonprofit employees with respect to flexibility, innovativeness,and red tape, taking sector switch into account. The empirical findings show that nonprofit organizations are perceived as more flexible and innovative, compared to private sector counterparts, and that the degree of red tape is greater in public sector organizations than in nonprofits. The public-nonprofit distinction can be accounted for by differences in the external environments of each sector. While public agencies are constrained by non-market environments such as political and legal authorities,nonprofits confront an economic environment. This study also suggests that employee experience in other sectors may influence perceptions of the organizational values of the sector in which the employee currently works.