Effect of strategic planning factors on the non-financial performance of non-governmental organizations in Kenya
Date
2020-09
Authors
Thairu, Mercy Wangari
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Despite the critical role and positive outcomes that strategic planning play on organizational
performance, there is a limited examination of strategic planning factors within Kenyan
NGOs. The study specifically examined the effect of leadership practices, organization
culture, organization structure, and human resource planning on the non-financial
performance of NGOs. The study was informed by the strategic choice theory and the
institutional theory—the systemic review of the literature allowed for the identification of
various research gaps that inform this research. The study was grounded on the positivism
research philosophy with a descriptive research design employed in the research. The
population consisted of 303 employees working for NGOs operating within Kenya. The final
sample consisted of 204 respondents drawn from NGOs working within Nairobi City County.
The survey employed semi-structured research questionnaires in the data collection. The
research utilized the drop and pick method as well as Google forms in the data collection
process. The study utilized quantitative analysis in the review of the collected research data.
The study used descriptive analysis, factor analysis, and regression analysis. The study
employed content analysis for the qualitative data. The findings were presented using tables
and charts. The study achieved a 67% response rate from the sampled research participants.
The correlation analysis showed there is a significant and positive effect of leadership
practices, organization culture, organization structure, and human resource planning on the
non-financial performance of NGOs. The study also established that the external environment
had a positive and significant effect on the relationship between strategic planning factors and
non-financial performance. The results of the factor analysis showed that all the study
variables were adequate for factor analysis to be adopted. The study regression analysis
revealed there is a positive and significant relationship between strategic planning factors and
non-financial performance. The study concluded that leadership practices had an insignificant
positive effect, while organization structure had a negative and significant effect on nonfinancial
performance. The research concluded that organizational culture and human
resource planning had a positive and significant influence on the non-financial performance
of NGOs. The study recommends that organizations should align their internal operations to
the external environment to foster effectiveness and efficiency within the firm. The research
recommends that NGOs should improve their leadership practices and streamline their
organization structures to foster the achievement of organizational outcomes. The study
recommends that NGOs should reinforce the shared values, communication, have clearly
defined tasks, and enhance teamwork and employee participation, to enhance organizational
performance.
Description
A Thesis submitted in partial fulfillment of the requirements for the award of the Degree of Masters of Business Administration at Strathmore University Business School
Keywords
Strategic planning, Financial performance, Organizational performance