COMPETITIVE STRATEGIES AND PERFORMANCE OF PROJECT BASED NON-GOVERNMENTAL ORGANIZATIONS IN KENYA

Abstract

Organizations that fail to reform themselves with an aim of achieving accountability,
efficiency and superior influence in a gradually more global competitive environment are
bound to die a natural death. Inspired by this assertion supported by several other findings
as will be hereby reviewed, the present study will thus be principally concerned with
analyzing competitive strategies and its impact on the performance on Project based Non-
Governmental Organizations (PBNGOs) in Kenya. Literature on PBNGO’s related to
agency theory is virtually non-existent and rarely becomes applied to areas beyond board
and executive compensation. The paper seeks to explore the characteristics and new twist
in operations by PBNGO’s and the effects of fundamental constructs related to competition
on the performance within these organizations. The study was grounded on the ResourceBased

View and Principal agency theory. A census survey of all the 161 PBNGOs was
conducted and data collected using a structured questionnaire. The hypotheses of the study
were tested by use of regression analyses. The study found a statistically significant and
positive association between competitive strategies and organizational performance. Thus,
PBNGOs are recommended to put in place competitive strategies that will ensure they
achieve their performance objectives efficiently. The study findings contribute to
knowledge on the corporate governance of project-based NGOs arguing that PBNGOs
perform better with a mix of competitive strategies. Further study was recommended on
competitive strategies and organization performance of other NGOs in Kenya, in Africa
and rest of the world to enable generalization of the study findings.
Keywords: Competitive Strategies., Organizational Performance, Project-Based NonGovernmental
Organizations,
Non-Governmental
Organization.