Influence of balanced organizational controls on financial sustainability of NGOs in Kenya
Keywords:
balanced organisational controls, feedback controls, financial controls, financial sustainability, strategic controlsAbstract
The purpose of this research was to determine the influence of balanced organizational controls on
financial sustainability of NGOs in Kenya. The study was anchored on strategic leadership theory and
utilized descriptive correlational research design. The study targeted active local NGOs based on the
records of NGOs Co-ordination Board in 2019. Data was collected through self-administered
questionnaire. Correlation results showed that balanced organizational controls had a positive and
significant relationship with financial sustainability. Ordinal logistic regression model indicated good
prediction (β5= -2.072, p ≤ .05). However, proportional odds assumption was violated, and
corresponding Pearson Chi-square statistic indicated a poor model fit. Hence, balanced organizational
controls do not have significant influence on financial sustainability. The study concluded that balanced
organizational controls were not perceived to be important in influencing financial sustainability of
NGOs in Kenya. The study recommends review of the appropriateness of balanced organization
controls particularly in NGOs’ planning and reporting for enhanced organizational performance.
References
Аchuа C.F. & Lussiеr, R.N. (2013). Еffеctivе Lеаdеrship, Southеrn-Wеstеrn CЕNGАGЕ Lеаrning,
USА.
Babbie, E. R. (2015). The practice of social research: Nelson Education. Boston, MA Cengage Learning
(14th Ed). USA.
Balaraju, K. (2016). Organisational Effectiveness of NGOs with Reference to Personal Characteristics
of Staff. Social Sciences, 4(2), 339-357.
Bell, S., & Morse, S. (2018). Sustainability indicators past and present: what next? Sustainability, 10(5),
Bello-Pintado, A., & Bianchi, C. (2020). Workforce education diversity, work organization and
innovation propensity. European Journal of Innovation Management. Emerald Publishing
Limited
Beusch, P., Frisk, E., Rosén, M. &Dilla, W. (2017). Management Control for Sustainability: The
Development of a Fully Integrated Strategy
Bonino F., & Warner A. (2014). What makes humanitarian feedback mechanisms work? Literature
review to support an ALNAP–CDA action research into humanitarian feedback mechanisms.
Literature Review. London: ALNAP/ODI
Center for Creative Leadership (2017). Influencing the skills of persuasion. Retrieved from
https://www.ccl.org/ blog/three-ways-to-influence.
Center for Creative Leadership (2018). Adapting to Organizational Change: CCL Guidebook. Retrieved
from https://www.ccl.org/ articles/leading-effectively-articles.
Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed
methods approaches. Sage publications.
Eswaran, M. (2018). Can For-Profit Business Alleviate Extreme Poverty in Developing
Countries? (No. tina_marandola-2018-6). Vancouver School of Economics.
Finkler, S., Smith, L., & Calabrese, T. D. (2018). Financial management for public, health, and notfor-profit organizations. CQ Press.
Fowler, A. (2016). Non-governmental development organisations’ sustainability, partnership, and
resourcing: futuristic reflections on a problematic trialogue. Development in Practice, 26(5),
-579.
~ 57 ~
The University Journal Volume 3 Issue 1 2021 ISSN: 2519 – 0997 (Print)
Fragouli, E. (2017). Reviewing the role of Higher Education towards the development of leadership
competences. International Journal of Higher Education Management, 4(1), 26-49.
Fushimi, K. (2018). The puzzle of the universal utilization of the logical framework approach: An
explanation using the sociological new institutional perspective (Literature Review No.
. Tokyo: JICA Research Institute.
Harkin, B., Webb, T. L., Chang, B. P., Prestwich, A., Conner, M., Kellar, I., ... & Sheeran, P. (2016).
Does monitoring goal progress promote goal attainment? A meta-analysis of the experimental
evidence. Psychological bulletin, 142(2), 198.
Harrell, F. E. (2015). Regression modeling strategies: with applications to linear models, logistic and
ordinal regression, and survival analysis. Springer.
Hayman, R. (2016). Unpacking civil society sustainability: looking back, broader, deeper,
forward. Development in Practice, 26(5), 670-680.
Hitt, M. A., Ireland, R. D., &Hoskisson, R. E. (2016). Strategic management: concepts: competitiveness
and globalization. Cengage Learning.
Kalnins, A. (2018). Multicollinearity: How common factors cause Type 1 errors in multivariate
regression. Strategic Management Journal, 39(8), 2362-2385.
Kenya National Council of NGOs (2018). Report: Summary of Challenges and Opportunities facing
NGOs and the NGO Sector. Retrieved 16 October 2018.
http://www.penkenya.org/UserSiteFiles/public/challenges%20and%20opportunities%20faci
ng%20NGOS.pdf
Khieng, S., &Dahles, H. (2015). Commercialization in the non-profit sector: The emergence of social
enterprise in Cambodia. Journal of Social Entrepreneurship, 6(2), 218-243.
Knowles, D., & Wilson, C. (2018). Financial Sustainability Through Leadership. In Transformational
Leadership and Not for Profits and Social Enterprises (pp. 92-115). Routledge.
Lassou, P. J., Hopper, T., &Soobaroyen, T. (2020). Financial controls to control corruption in an
African country: Insider experts within an enabling environment. Financial Accountability &
Management,2020, 1-17
Leon, P. (2001). Four pillars of financial sustainability: resources for success series. The Nature
Conservancy, Arlington, Virginia, USA.
McClish, S. J., & Reeve, K. M. (2018, July). Earned Income: The Secret to Success for the Nonprofit
Seeking Financial Sustainability. In Proceedings of the International Association for Business
and Society (Vol. 29, pp. 71-83).
Mpaata, K. A., Lubogoyi, B., &Okiria, J. C. (2017). Financial Controls and the Perceived Performance
of the Sugar Factory in a Family Business Enterprise: Evidence from the Madhvani Sugar
Factory in Uganda. International Journal of Science and Research (IJSR), 4(6), 463-468
Mutinda, S. M., &Ngahu, S. (2016). Determinants of financial sustainability for non-governmental
organizations in Nakuru County, Kenya. IOSR Journal of Business and Management, 18(9),
-88.
NGOs Coordination Board (2019). Annual NGO Sector Report for 2018/9. Kenya
NGOs Coordination Board (2017). Kenya NGOs Sector Report for 2017. Kenya
Sargeant, A. and Day, H. (2018). A Study of Nonprofit Leadership in the US and its Impending Crisis.
Sustainable philanthropy with Plymouth University. Concord Leadership Group
Sihag, V., &Rijsdijk, S. A. (2019). Organizational Controls and Performance Outcomes: A Meta‐
Analytic Assessment and Extension. Journal of Management Studies, 56(1), 91-133.
~ 58 ~
Oluoch et al. Influence of Balanced Organizational Controls …
Stehnei, M., Irtysheva, I., Khaustova, K., &Boiko, Y. (2017). Modeling of strategic control system in
the context of sustainable development of enterprise. Problems and perspectives in
management, 15 (3), 212-223.
Verburg, R. M., Nienaber, A. M., Searle, R. H., Weibel, A., Den Hartog, D. N., & Rupp, D. E. (2018).
The role of organizational control systems in employees’ organizational trust and performance
outcomes. Group & organization management, 43(2), 179-206.
Wakiriba, J. W., Ngahu, S., &Wagoki, J. (2014). Effects of financial controls on financial management
in Kenya’s public sector: A case of National Government departments in Mirangine SubCounty, Nyandarua County. Journal of Business and Management, 16(10), 105-115.
Wang, T., Yang, J., & Zhang, F. (2018). The effects of organizational controls on innovation modes:
An ambidexterity perspective. Journal of Management & Organization, 2018(1), 1-25.
Wijethilake, C. (2017). Proactive sustainability strategy and corporate sustainability performance: The
mediating effect of sustainability control systems. Journal of Environmental
Management, 100(196), 569-582.
Published
How to Cite
Issue
Section
Copyright (c) 2021 The University Journal
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
