Strategic Options and Performance of National Non-Governmental Organizations in the Health Sector in Kenya

Abstract

Non-governmental organizations (NGOs) in the health sector help achieve national health objectives by delivering local health services. However, diminishing organization performance impacts their work and overall social impact. The purpose of this study was to assess the influence of strategic options on the performance of health NGOs in Kenya. The study was grounded on contingency theory and it utilized positivistic research philosophy and cross-sectional research design. The target population of the study was 564 chief executive officers (CEOs) and program directors of 282 national NGOs registered with the NGO coordination board. A sample size of 234 was selected using a random stratified sampling technique that involved 8 regions as strata. Data collection was through a structured questionnaire, while inferential (confirmatory factor analysis – CFA, and structural equation modelling – SEM) and descriptive statistical techniques (frequencies, percentages, means and standard deviations) were used for data analysis. SPSS Version 26 and Analysis of Moment Structures (AMOS) version 26 software were used for the analysis. The study findings established that strategic options have a significant positive influence on organization performance among national health NGOs in Kenya (r squared = 0.57, beta = 0.756, CR = 7.446, p < 0.05). The study concludes that selecting the strategic option that aligns with the organization’s context is essential for the organization performance of national health NGOs in Kenya. The study recommends that senior management of national health NGOs should critically consider the three generic strategies of cost leadership, focus and differentiation and select the one that aligns with their contexts to attain their organization performance objectives.