A Survey of the Value-chain Management Practices by International Relief and Development Non-governmental Organizations Operating in Nairobi

Abstract

Whereas the need for philanthropic organisations in society will be difficult to challenge, people who support the cause of the indigent and those in especially difficult circumstances in society through these organisations are increasingly concerned about their effectiveness and efficiency. International Non-Governmental Organisations (NGOs) are primarily set up to facilitate the much-needed support in mostly developing countries from organisations and individuals in mostly the developed countries. International Non-Governmental Organisations, like many other organisations, are getting affected by diminishing resources dedicated to charity. Populations are growing but resources are not proportionately growing to support these populations. There is therefore a strain on the available resources. This is precisely the reason why the issues of value creation analysis and efficiency are gaining currency in the sector. This study sought to shed light on this area of management in International Non-Governmental Organisations. The objectives of the study included; to determine the application of value-chain management practices in International Relief and Development Non-Governmental Organizations (NGOs) in Nairobi; to establish factors affecting the use of the value-chain analysis by the International Relief And Development NGOs in Nairobi; and, to determine the activities along a value-chain in International NGOs To achieve these objectives a sample, selected using simple random sampling, was studied. Data was collected using questionnaires, which were administered using the "Drop and Pick" method. The data was analysed using the Statistical package for Social Sciences (SPSS). The analysis was done using descriptive statistics. The study found that, whereas there is great felt need to analyse and track value created in these organisations, Value-Chain Management has been practiced by default rather than design in that it has not been systematic. Further, Value-Chain Analysis as a concept is yet to be fully appreciated as a tool of analysis in the sector. This has principally been attributed to the fact that in the past performance was assessed by the output only for a long time. More and more benefactors are beginning to assess performance using efficiency or "value-for-money" approaches. This is mainly why the organisations feel that they need to track and analyse value. The practice was observed in a very random pattern and not as a function of factors, like the number of years that an organisation has been in operation, or the size of the organisation, shown by the number of employees that an organisation has.