Firm’s resource portfolio and its influence on financial sustainability of NGOs in Kenya
Keywords:
Strategic leadership, firm’s resource portfolio, human capital, social networks, core competencies, financial sustainability, NGOsAbstract
The aim of the research was to determine the influence of a firm’s resource portfolio on financial
sustainability of NGOs in Kenya. The study was underpinned by strategic leadership theory and applied
descriptive correlational research design. The study’s target population was 6,028 comprising active
local NGOs. It utilized stratified random sampling to select 413 CEOs/board members as respondents
through a self-administered questionnaire. Correlation results showed that firm’s resource portfolio
had a positive and significant relationship with financial sustainability, r (393) = 0.564, p ≤ .05.
Ordinal logistic regression (Nagelkerke Pseudo R2) results revealed that firm’s resource portfolio
explained 13.9% of the variance in financial sustainability, R~ 73 ~ 2= .139, while the parameter estimates
results showed that firm’s resource portfolio significantly predicted financial sustainability, β2 = 2.725, p≤.05. Therefore, the null hypothesis was rejected implying that the firm’s resource portfolio
has significant influence on financial sustainability. The study recommends strategic leadership teams
to manage appropriately the organization's resource portfolio by organizing and bundling them into
capabilities, structuring their organizations to utilize the capabilities and selecting optimal strategies
to leverage on and exploit these resources to achieve financial sustainability.
References
Adnan, M., Abdulhamid, T., &Sohail, B. (2018). Predicting firm performance through resource-based
framework. European Journal of Business & Management, 10(1), 31-36.
Akay, E., &Kunday, O. (2018). An empirical study of HRM systems, human and social capital
development and their influence on innovation capabilities. International Journal of Managerial
Studies and Research, 6(5), 21-39.
Alexy, O., West, J., Klapper, H., &Reitzig, M. (2018). Surrendering control to gain advantage:
Reconciling openness and the resource-based view of the firm. Strategic Management
Journal, 39(6), 1704-1727.
Baia, E., Ferreira, J. J., & Rodrigues, R. (2020). Value and rareness of resources and capabilities as
sources of competitive advantage and superior performance. Knowledge Management Research
& Practice, 18(3), 249-262.
Barbie, E.R. (2015). The Practice of Social Research, 14th Edition. Cengage Learning
Benet J. (2020). The Response to COVID-19: Charting a Path for Canada. Economic Outlook.
Ceptureanu, S. I., Ceptureanu, E. G., Bogdan, V. L., &Radulescu, V. (2018). Sustainability perceptions
in Romanian non-profit organizations: an exploratory study using success factor
analysis. Sustainability, 10(2), 294.
Clune, W. H., & Zehnder, A. J. (2018). The three pillars of sustainability framework: approaches for
laws and governance. Journal of Environmental Protection, 9(3), 211-240.
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.
Gupta, H. (2018). Assessing organizations performance on the basis of GHRM practices using BWM
and Fuzzy TOPSIS. Journal of environmental management, 226, 201-216.
Haessler, P. (2020). Strategic decisions between short-term profit and sustainability. Administrative
Sciences, 10(3), 63.
Hitt, M. A., Ireland, R. D., &Hoskisson, R. E. (2016). Strategic management: concepts: competitiveness
and globalization. Cengage Learning.
Iordanoglou, D. (2018). Future trends in leadership development practices and the crucial leadership
skills. Journal of Leadership, Accountability and Ethics, 15(2), 118-129
Kabue, L. W., &Kilika, J. M. (2016). Firm resources, core competencies and sustainable competitive
advantage: An integrative theoretical framework. Journal of management and strategy, 7(1), 98108.
Kenya National Council of NGOs (2018). Report: Summary of Challenges and Opportunities facing
NGOs and the NGO Sector. Retrieved 16 October 2018.
Leon, P. (2001). Four pillars of financial sustainability: resources for success series. The Nature
Conservancy, Arlington, Virginia, USA.
Mourão, P., Pereira, T., & Moreira, M. C. (2017). The importance of new forms of capital in nonprofit
organizations: A case study of the Fafe delegation of the Portuguese Red Cross. International
Journal of Social Economics, 44(7), 846-868.
NGOs Coordination Board (2019). Annual NGO Sector Report for 2018/9. Kenya
Nimsith, S. I., Rifas, A. H., & Cader, M. J. A. (2016). Impact of core competency on competitive
advantage of banking firms in Sri Lanka. International Journal of Scientific Research and
Innovative Technology, 3(7), 64-72.
NonProfit Action (2017). Facts and stats About NGOs worldwide. The Global Journal. NPAction.
NTD-NGO Network. (2018). Reaching the unreached: the critical role of NGOs in beating NTDs.
Reaching a billion – Fifth progress report of the London Declaration
Prabhu, V. P., McGuire, S. J., Kwong, K. K., Zhang, Y., &Ilyinsky, A. (2017). Social entrepreneurship
among millennials: A three-country comparative study. Australian Academy of Accounting and
Finance Review, 2(4), 323-353.
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
Serrat, O. (2017). Harnessing creativity and innovation in the workplace. In Knowledge solutions, 903910. Springer.
Suriyankietkaew, S. (2016). Strategic Leadership Practices for Corporate Sustainability: An Empirical
Analysis.
Teece, D., Peteraf, M., &Leih, S. (2016). Dynamic capabilities and organizational agility: Risk,
uncertainty, and strategy in the innovation economy. California Management Review, 58(4), 1335.
Tully, C. (2018). Using foresight methods to adapt development co-operation for the future.
Vainieri, M., Ferrè, F., Giacomelli, G., & Nuti, S. (2019). Explaining performance in health care: How and when top management competencies make the difference. Health care management review, 44(4), 306.
Wiengarten, F., Lo, C. K., & Lam, J. Y. (2017). How does sustainability leadership affect firm performance? The choices associated with appointing a chief officer of corporate social responsibility. Journal of business ethics, 140(3), 477-493.
Published
How to Cite
Issue
Section
Copyright (c) 2022 Fredrick Ochieng Oluoch
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.
