Factors that influence strategic choices adopted by community based organizations competing for donor funding in Nairobi, Kenya

Abstract

Competition is seen as the main factor that influences strategic choices. However, other factors like organization structure, leadership, culture, pressure from donors, slow economic growth, increased diversification and technological advances influence choices made by organizations. None consideration of these factors leads to challenges faced by community based organizations that include poor co-ordination of activities, mis-allocation of resources, incomplete projects, low motivation of the staff and mistrust of community based organizations members. Unfortunately, no studies have been undertaken to examine the extent to which such factors influence strategic choices adopted by community based organizations. The purpose of the study was to determine factors that influence strategic choices adopted by community based organizations as they compete for donor funding. This study used cross-sectional research design. The study targeted all the community based organizations operating in the informal settlements of Nairobi. A sample size of 50 community based organizations operating in Nairobi was selected by proportionate stratified random sampling method. The study collected primary data from the sample of the population. The study used semi-structured questionnaires. Collected data was analyzed in using descriptive statistics. From the findings the study concludes that the factors that mainly affect strategic choices adopted by community based organizations in Nairobi Kenya include community involvement in project design, good financial projections and budgeting, sustainability of the organization, sensitivity on how programs affect the general society and having inadequate funds to implement a project. The study also concludes that higher education levels and leadership hierarchy positions have a high influence on choices made the organizations. The study recommends that in order to enhance the success of the project execution/implementation, the management should involve the community in project design, employ qualified and experienced personnel as well as seek for alternative ways of generating funds rather than overlying on donor funding.