Competitive Strategies and Performance of Non-Governmental Organizations in Nyeri County, Kenya

Abstract

Despite their recent growth and contributions to the Kenyan economy, there is increasing pressure on Non-Government Organizations in Kenya to meet their organizational goals and objectives. These difficulties have been attributed to financial challenges and increased competition for resources. The industry is characterized by many Non-Government Organizations which operate seasonally or just few years and then disappearing due to poor organizational performance and poor development of sustainable competitive advantage. Therefore, application of well thought practically applicable competitive strategies is paramount to mitigate the challenges also improve Non-Government Organizations performance. The main objective of this research was to find out the effect of competitive strategies on the performance of Non-Governmental Organizations in Nyeri County, Kenya. Specifically, this research sought to determine the effect of focus strategies, cost leadership strategy, differentiation strategy and speed strategy on the performance of Non-Governmental Organizations in Nyeri County, Kenya. The study was underpinned on the later theories: dynamic capabilities theory, goal setting theory, resource-based theory, the generic framework theory and organization theory. This study used descriptive survey research design. The study’s population and sample size were 100 respondents derived including directors, project coordinators, project officers and assistant officers from the 10 registered Non-Government Organizations in Nyeri County. Data was collected via a semi-structured questionnaire, and descriptive and inferential statistics were used to evaluate it. Means and standard deviation were utilized as descriptive statistics, whereas regression and ANOVA were utilized as inferential statistics. The research reveals that focus approach has a positive impact on the performance of non-governmental organizations (β= 0.153, p= 0.003). Furthermore, differentiation approach has a positive effect on Non-Government Organizations ' effectiveness (β= 0.210, p=0.000). Additionally, the study found that cost leadership approach has a significant and positive impact on NGOs' performance (β= 0.358, p= 0.000), whereas speed strategy has a positive and significant impact on Non-Government Organizations' performance (β= 0.199, p= 0.012). Relying on the finding, the research concluded that Non-Government Organizations usually use differentiation approach to provide goods and services that are in demand by consumer. Furthermore, the study shows that focus strategy has a positive and significant association with the performance of non-governmental organizations. The research also found that implementing a cost leadership approach has a positive and significant impact on Non-Government Organizations effectiveness, and that Non-Government Organizations in Nyeri have implemented the approach. Also, the study concludes that there is maintainable growth within the Non-Government Organizations performance which is as a result of acting and implementing speed strategy. Among the recommendations provided by the study is that Non-Government Organizations should orient themselves as quick to act organizations in order to realize there objectives faster and also tap on the available opportunities of growth.