The Effect of corporate parent roles on the operational performance of subsidiaries in international NGO`s in Kenya
Date
2024
Authors
Rao, E.
Journal Title
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Publisher
Strathmore University
Abstract
The not-for-profit sector has been rapidly growing in Africa and around the world playing a leading role in improved livelihoods and poverty alleviation. Through their work with multiple stakeholders across various geographic areas, organisations in the NGO sector come across challenges that necessitate the adoption of a decentralised structure including the need for operational performance and optimal service delivery. There is however lack of clarity on what drives the decentralisation including which functions ought to be decentralised and the impacts of decentralisation on the organisation’s performance. Additionally, there exist staff disagreements between the home and field office staff that could potentially impede the organisations work and deter responsiveness to partners and community concerns. Corporate parent roles arise because of the need to strengthen the decentralised entities, realize synergistic benefits and align the vision across the organisation. The value addition efforts have been seen to be challenging but essential for an improved business strategic position with effects that both improve or destroy value. This study sought to establish the effect of corporate parent roles (Portfolio manager, Synergy manager and the Parental developer) on the operational performance of subsidiaries in international NGO`S in Kenya. The systems theory and agency theory were used to anchor this study. A descriptive research design technique was employed and by use of a questionnaire, responses from 270 respondents in the 30 leading INGO`s by spend in Kenya were considered. The data that was collected was then analysed using correlation and regression analysis and descriptive statistics, to determine the relationship between the study variables to draw conclusions of the study. The results showed that the portfolio manager role, the synergy manager role and the parental developer role all have a significant positive influence on operational performance of INGO subsidiaries in Kenya. This study contributes to the policy formulation and operational structures of INGO`s. It also provides tools and techniques for practicing managers therefore enriching the Systems theory. The findings of this study were however limited to the Kenyan, INGO context and focused on corporate parent roles, limitations that future research should address.
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Citation
Rao, E. (2024). The Effect of corporate parent roles on the operational performance of subsidiaries in international NGO`s in Kenya [Strathmore University]. http://hdl.handle.net/11071/15490