Strategic management in the non-profit sector in Kenya :a case study of Kenya Red Cross Society

Abstract

Strategic Management (SM) is increasingly becoming extensively used by large firms, small films, nonprofit institutions, governmental organizations and multinationals in their quest to adapt to the rapidly changing environment. While there are studies that have been done on the application of SM largely in the For-Profit CFP) sector, studies focusing on the nonprofit sector are limited, especially in the local context in Kenya. The purpose of this study was to examine the practice and effect of the application of the principles and tools of strategic management, on the performance of nonprofit organizations in Kenya. The study sought to evaluate the applicability of strategic management approach in a nonprofit organization and to explore whether there are performance benefits attributable to SM in a nonprofit organization in Kenya. The study applied an exploratory single case study design to explore the research questions and test the research propositions. The research questions were formulated following which a conceptual framework was developed from the review of literature, and propositions were stated. A case study was written which captured the matters raised in the propositions. The study found that SM is applicable in a Kenyan nonprofit organization and that the SM applications are well developed. In addition, there is a positive relationship between the application of SM in Kenyan nonprofit organizations and their performance. The study concluded that the principles and tools of SM are essential to nonprofit organizations as it can impact positively on the organizational performance. Key study recommendations include the need to ensure investment in human capital, open up involvement of more constituents in the different steps of SM; cascading to lower levels and inculcation of the culture of strategy at all levels of the organization; and the continued focus on enhancing learning, monitoring and knowledge management on strategic management in the NFPs.