Value Creation Through Strategic Partnerships Between Businesses and Health Ngo’s in Nairobi - Kenya

Abstract

In a dynamic environment, organizational success can be determined by strategic networking. Organizations must also tap into opportunities by monitoring their competitive environment. This means that organizations must understand how changes in their environment are unfolding in order to increase growth in aspects of their business. Whereas new strategies provide organizations with abilities to seek opportunities and evade barriers, business leaders and the Non – Governmental Organizations (NGOs) have recognized that global challenges require partnerships and collaborative support from the economic sectors so as to achieve sustainable growth. Therefore, collaborative relationships between businesses and NGOs have become important strategies to achieve success. The objective of the study was to determine value creation through strategic partnerships between businesses and health NGO’s based in Nairobi. The research design adopted was descriptive research design. The population of the study was all the 667 health NGOs situated in Nairobi. The study also used systematic sampling in which the researcher picked a sample of every 10th NGO ending up with 67 organizations. The study also used primary data which was collected using self-administered questionnaires. The data was analyzed using the Statistical Package for Social Sciences (SPSS) software. The study was documented using tables, percentages, mean and standard deviations. The study found out that mutual trust, inter-firm dependency, formal and informal communication, strong commitment towards set goals and inter-organizational capabilities and network culture were necessary ingredients for successful partnerships between businesses and NGOs. The study also found out that NGOs were motivated to pursue partnerships so as to create positive social status in societies. This helps the NGOs to increase awareness of their activities to communities that are receptive to them. Other benefits include access to financial facilities, and recognition by donors. The study also found out that information sharing, electronic integration, inter-firm cost management, flexibility and adaptability resulted in value creation.