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

Abstract

There is increasing pressure on NGOs in Kenya to meet their organizational goals and objectives despite financial challenges and increased competition for resources. Application of well thought practically applicable competitive strategies is paramount to mitigate the challenges also improve NGO performance. Thus, the general objective of this study was to determine the effect of competitive strategies on the performance of Non-governmental organizations in Nyeri County, Kenya.  The study employed descriptive research design. 100 participants were chosen from NGOs’ directors, project coordinators, project officers and assistant officers from the 10 registered NGOs in Nyeri County. Data collected using questionnaires was analysed using multivariate regression and Pearson correlation tests. The study found that focus strategy has positive influence on NGOs performance (B= 0.153, p= 0.003). Also, differentiation strategy positively influences NGOs performance (B = 0.210, p= 0.000). Similarly, the study established that cost leadership strategy positively affects the NGOs performance (B= 0.358, p= 0.000) while also speed strategy has positive and significant effect on NGOs performance (B = 0.199, p= 0.012). Based on the findings, the study concluded that differentiation strategy is commonly applied by the NGOs organizations with the sole objective of creating goods and services that were in demand by the customers.   Also, the study concludes that focus strategy had a positive and significant relationship with NGOs performance. The study also concluded that cost leadership strategy had a positive and significant effect on NGOs performance and that NGOs in Nyeri have implemented this cost leadership structure. The study recommends NGOs to orient themselves as quick to act organizations in order to realize there objectives faster and also tap on the available opportunities of growth. Keywords: NGO’s performance, competitive strategies, differentiation strategy, cost leadership, speed strategy, focus strategy.