Strategic Capability and Performance of Non Governmental Organizations in Nairobi County, Kenya

Abstract

The study identified and studied the elements of strategic capability of NGOs within Nairobi County and how these can be adopted and used to enhance performance. The main objectives were to identify the major elements of strategic capability of NGOs in Nairobi County, to establish the key performance indicators of success in these organizations and establish the correlation between the strategic capabilities and performance of NGOs in Nairobi County. The survey was administered to 107 respondents out of the target of 157 who were sampled from various NGOs across Nairobi County. Both primary and secondary data was collected through a survey questionnaire and a Focus Group Discussion (FGD). All collected data was checked for accuracy, consistency and completeness for analysis. Descriptive statistics (frequencies and percentages) were used to describe the study findings on the project indicators and the results presented in form of bar graphs and pie charts. The researcher employed simple correlation analysis. This enabled the researcher to understand the relation between strategic capabilities and performance on the NGOs under study. Content analysis was used to analyze the interviewees’ views on what they understood to be the key elements of strategic capability in their organizations. It was noted that, despite the financial sustainability which apparently seems to the hallmark of the NGOs in Nairobi County, there were also other capabilities which must be keenly taken into consideration by any NGO that wants to prosper. Among these elements were information technology, ability to fundraise, intellectual capital, human resources, property, intangible resources, core competences, research and development, strategic planning among many others. As the results revealed, this study concludes that there is indeed a positive correlation between strategic capabilities and performance of NGOs in Nairobi County. All organizations irrespective of their status and area of operation have the desire to be effective in their operations and attain a level of sustainability including all NGOs not only in Nairobi County but across the world. The study therefore recommends that all NGOs must adopt and cultivate various strategic capabilities that would enable them to be sustainable. This must be done through a structured strategic planning process that involves all the relevant stakeholders so that they all understand the intended goals and avoid a reactive approach to various environmental challenges. The study also emphasizes the need to have a clear performance tracking and management system in order to enable the management to establish the general performance of the NGOs at any given point in time and be in a pole position to adjust accordingly should it be necessary. Finally the study recommends further research on the effectiveness of the strategic capabilities particularly along NGO thematic areas of focus as there was a wider and varied scope of these elements, with some being specific to specific areas of focus. This will provide important information on the benefits achieved in strategic management within the NGOs in the County.