PurposeOutsourcing of logistics has great importance in disaster relief. Aid agencies spend several billion US dollars every year on logistics services. However, the concept of outsourcing has not been established adequately in literature on humanitarian logistics, leading to a fragmented view of the practice. This paper provides a holistic perspective of the concept by constructing a conceptual framework to analyze both practice and research of outsourcing in humanitarian operations. Based on this analysis, we explore future trends and identify research gaps.Design/methodology/approachThe paper is based on a structured review of academic literature, a two-round Delphi study with 31 experts from aid agencies and a complementary full-day focus group with twelve experts from aid agencies and logistics service providers.FindingsThe paper systemizes the current practice of outsourcing in humanitarian logistics according to a conceptual framework of five dimensions: subject, object, partner, design and context. In addition, it reveals ten probable developments of the practice over the next years. Finally, it describes eight important research gaps and presents a research agenda for the field.Research limitations/implicationsThe literature review considered peer-reviewed academic papers. Practitioner papers could provide additional insights into the practice. Moreover, the Delphi study focused on the perspective of aid agencies. Capturing the views of logistics service providers in more detail would be a valuable addition.Originality/valueThe paper establishes the academic basis for the important practice of outsourcing in humanitarian logistics. It highlights essential research gaps and, thereby, opens up the field for future research.
Performance measurement of Non-Profit Organizations (NPOs) is of increasing importance for aid agencies, policy-makers and donors. A widely used benchmark for measuring the efficiency of NPOs is the overhead cost ratio, consisting of the total money spent on administration and fundraising relative to the budget. Donors generally favor a lower overhead cost ratio as it ensures that more money directly reaches beneficiaries. Unlike fundraising expenses, administrative costs do not contribute to advertising the actions of an NPO even though they account for a significant proportion of overhead cost. Reducing administrative expenses is a logical consequence from a financial viewpoint, but might negatively affect NPOs through the resulting administrative capacities. This phenomenon is known as “Nonprofit Starvation Cycle”. This work provides an analytical framework for analyzing NPO decision making concerning administrative costs. The paper provides answers to important research questions on the optimal level of administrative spending, the influencing factors and the effects of available information on NPOs. The research shows that focusing on financial performance measurements can result in reduced utility created for NPOs. Less transparency often leads to increased utility for NPOs, but more transparency can increase NPOs’ utility if the information available exceeds a certain threshold. Fluctuating donations are challenging for NPOs’ planning and may impact administrative capacities negatively.
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