Effect of Strategy Implementation on Performance of Charitable Non-Governmental Organization in Kenya: A Case of Save The Children International Kenya

Keywords: Strategy Implementation, Performance, Charitable Non-Governmental Organization, Technology, Leadership

Paper Type: Research Article

1. Introduction

The challenges of the modern business environment and fast changing global economy demands high productivity speed and flexibility for organizations that seeks to thrive. In order to achieve the required efficiency and effectiveness, organizations must effectively implement strategy. These can be achieved when organizations have innovative leadership with effective structure and policies and procedure that efficiently allocate and utilize resources. It is through this that strategy will have an impact on organization performance, (Li, Guohui, & Eppler, 2010).

However, today's global competitive environment is complex, dynamic, and largely unpredictable. To deal with this unprecedented level of change, a lot of thinking has gone into the issue of how strategies are best formulated but less has been done on strategy implementation and the study was to show how effective strategy implementation effects non-governmental organization performance. Strategic management is about managing the future, and effective strategy formulation is crucial, as it directs the attention and actions of an organization, even if in some cases actual implemented strategy can be very different from what was initially intended, planned or thought. The assessment of strategy formulation processes becomes crucial for practitioners and researchers alike in order to conduct and evaluate different formulation processes (Tawse & Tabesh, 2021).

Several researchers have put forward frameworks in a bid to explicate the factors that influence strategy implementation. For instance, Higgins (2005) accentuates eight factors for effective strategy implementation. He sets up the "8'S's" framework of strategy implementation, including; strategy and purpose, structure, resources, shared values, style, staff, systems and processes, and strategic performance. The "8'S's" of strategy execution is an approach that enables senior management to enact, monitor, and assess the cross functional execution of strategies. The models offer a thrust on which the study is to be carried out. Oyedijo, (2013) indicates that a considerable proportion (over 65%) of organizational strategies fail to get implemented effectively. In his research, Pella et al., (2013) further identified that, the challenge of effective strategy implementation has always been and still remains a difficult hurdle faced by many organizations.

1.1 Strategy implementation in non-governmental organizations

According to Taylor (2019) non-governmental organizations play an important role in today's society, they typically pick up the government's deficits in services and social protection for citizens through philanthropy of donors and the socially aware. In Africa there has been an increase in the number of people in need due population increase, scarcity of resources and conflicts. This has led to coming up of non-governmental organizations who depend on donors, (Salomon et al 2015). In most developing countries for instance Kenya, non-governmental organizations have been experiencing lack of manpower, limited financial assistance due to donors withdrawing their support, short range of objectives, yielding to political influences and corruption has become a challenge in the management of the non-governmental organizations. Given the important role of charitable non-governmental organization play in the economy, it is important that in order for them to survive, the whole process of strategy formulation and implementation need to be successful. The key areas identified in the strategy revolve around infrastructure, quality of service, innovative solutions to area of operations, and the acquisition of the right skills and creating organizational structure that can stand today's environmental challenges.

Several studies have been done on the effect of strategies implementation on charitable non-governmental organization, However, most of the studies focused on strategies that can be adopted for survival of charitable organization in these competitive environments; the studies failed to cover the effect of strategy implementation and performance. For instance, Rajarajeswari (2015) conducted a study on sustainability strategies adopted by International NGOs. It was recognized that international NGOs must embrace strategies that suit their organizations so as to enable them enhance performance and, in this way, their organizational will become sustainable in the long run. Muriithi (2014) researched on strategies adopted by non-governmental organizations to achieve financial sustainability. It was noted that most NGOs depended on donor funding and don't appear to have created system towards money related supportability. This is moving outstandingly towards Red Cross Kenya, who have identified ways of raising their own funds, building of a hotel. However, there exists a knowledge gap in emergent economies for instance Kenya, where there is limited both theoretical and empirical review about strategic implementation in the charitable non-governmental organization in relation to performance. This study therefore hypothesized that.

H01: Leadership significantly affects performance in non-governmental organizations

H02: Technology significantly affects performance in non-governmental organizations

1.2. Theoretical Orientation

The study is anchored on Resource Based Theory by Barney (2010). Resource based theory is a company's immobile and inter-organize resource that have an important role in creating a firm's competitive advantage. Most RBV researchers, (Peteraf and Barney, 2013) the resources affect an organization's ability to execute its game plan strategies which in turn affects organizational performance. This theory is relevant for this study because it explains the role played by internal resources controlled by an organization in the level of performance recorded. Institutional theory considers the impact of the firms' environment and the cognitive, normative and regulative structures that surround the firms. It attempts to explain how these structures impact the actions and boundaries of the firm. These structures provide stability to actions, routines and cultures; define legitimacy and constrain action. The theory focuses on how institutions are created, how they pervade societies and industries and finally how institutions change over time. This theory is important for this study because it helps explain the role played by policies, procedures, laws and other internal restrictions on strategy implementation.

2. Empirical review

Dimitiro (2014) researched on the impact of leadership and change management strategy on organization culture in Greece. The study established leadership is an important aspect in regards to change management strategy in the organization. Further the study revealed that vision is a major facet of leadership and is associated with culture. In general leader's play and important role in selecting planning and change management approaches. He argues that it's essential for leaders to create an atmosphere of psychological safety for all individuals to engage in the new behavior to test the waters of new culture.

Abba (2016) examined the influence of strategic leadership in strategy implementation in commercial banks. The study revealed that in an organization the leaders develop strategic vision, develop strategies and set goals for the company. Further it was observed that leaders set objectives of the company, in the long-term process and address the human resource planning needs. An organization with leaders who make informed decisions are in a position to steer the organization in the right direction and this includes both managing the human power and the organization's resources thus facilitating high organization performance both in terms of revenue and the entire organization performance.

Yanney (2014) researched on how business strategy and leadership style: impact on organizational performance in the manufacturing sector in Ghana. The study revealed that leadership style and business strategy statistically and significantly impacted on organization performance. In addition, the study also revealed that leadership style greatly influences on the organization performance. Transformational leadership style had a positive significant effect than transactional leadership style. For organizations to experience organization performance the business should embrace transformational leadership style. Further the researcher argues that leadership performs various roles such as innovator, strategist, care take, analyst, guide organizer, motivator, developer, change enabler or change driver, decision maker, collaborator, risk manager, debtor and evaluator. Therefore, the recipe for effective strategic management process is leadership responsibility, loyalty power, motivation, awareness, articulacy, consistency and reliability, (Arzhar ,2014).

Iqbal, Anwar and Haider (2015) researched on effect of leadership style on employee performance. The study revealed leadership styles have significant and substantial effect on organizations. Autocratic leadership created a one-sided conversation. The study also observed that leadership skills of the employees became restrictive autocratic leadership and the employees were involved in repetitive work on daily activities. Further the study observed that Leaders had the authority, therefore there were chances of exploitation and distortion of employees. This restricted workplace communication and socialization. Democratic leadership style was considered beneficial to most companies. This style focused on the management that provided guidance to its teams and its departments while accepting and receiving inputs from individual team members. The study further revealed that participative leadership style was also common among companies. It was observed that participative leadership style was unproductive on short-term periods. The study concluded that authoritative style, consultative style and participative style to be the most acceptable.

George et al (2016) researched on leadership and organizational change for Implementation (LOCI) a randomized mixed pilot study of a leadership and organization development intervention for evidence-based practice implementation. The findings revealed that leadership plays an important role in change implementation. The study also observed there are other intervention that highlights specific strategies that leaders can use to improve the climate for implementation in their teams. They argue that strategies that assess, intervene and support implementation at multiple organizational levels should have a greater likelihood of success in the effective deployment of evidence-based practice implementation.

Nijkamp (2016) Examined leadership styles and strategy process on small and medium enterprises. The study revealed leadership is a dynamic energetic process that provides direction, guidance and influence subordinates. In addition, the study affirms that Leadership is all about influencing a group of other people in order to achieve organizational outcomes. The study also observed that different styles were effective on strategy generation and execution.

Kihara, Bwisa, and Kihoro, (2016) researched on the relationship between Leadership styles in Strategy Implementation and Performance of Small and Medium Manufacturing Firms. The study established that there were positive significant relationship styles applied or used during strategy implementation process and performance of Small medium manufacturing firms. The study further revealed that the owners of small medium manufacturing firms have adopted transformational style of leadership and transaction and passive / avoidance behavior with performance of the firms.

Muema (2017) examined effect of leadership style and organization structure on strategy implementation in hospitality industry. The study revealed, charismatic, democratic and transformational leadership style were the most predominant among the hospitality industry. Further the study observed that organization structure influences strategy implementation process.

2.1. Technology

According to Ward (2016) information communication technology is a system designed to improve organization operational efficiency, to enable firms to do things faster, cheaper, accurately and consistently. Information communication technology facilitates communication efficiency, collaboration within and without the firm making information sharing easier. Several studies have been done how technology affects strategy implementation process.

Dragsia and Dragan (2016) studied the role of innovations on strategic orientations and competitiveness of enterprises. The study revealed that innovations occur as a necessity and organizations that have integrated technology in their strategies have a competitive edge over their competitors. They argued that organizations should be flexible, creative and offer the possibility of participation in decision making in the entire strategy orientation process. The study concluded that organizations that fail to embrace technology in their strategies rapidly decay or disappear from the market. Every organization wants to have a competitive edge in their area of operation, for that to be possible technology and strategy should be embraced.

Sibanda, and Ramrathan (2017) studied influence of information technology on organization strategy. The study revealed the advancement of technology has major influences on how organizations operate both internally and externally. Further it was observed that organizations that have integrated technology in their strategies have smooth flow in the strategy implementation process. The study concluded that organizations need to adopt technology earlier in the entire strategy implementation process. The organizations should also be more digital and they should be flexible in their strategies, and organizations should be cognizant on how to effectively use technology in their strategies to have a competitive edge and stay ahead and not to be outpaced by competitors.

Kihara, Bwisa,and Kihoro (2016) examined the role of technology in strategy implementation and performance of manufacturing small and medium firms. The study established there was a strong positive and significant relationship between attention to technology requirements during strategy management implementation process and performance of manufacturing small medium firms. The study also established that technology is indeed is a vital dynamic capability required by all manufacturing firms to attain superior performance and competitive advantage. The study concluded that technology is indeed the fourth most drivers influencing performance of manufacturing small medium firms.

Zaffah, and Shusi (2014) studied on strategic management of technology. They argued that information and technology is important in the entire strategy implementation process. They argue that a firm that has embraced technology in their strategy process suffers from communication breakdown and poor operations management. They also emphasize that management of technology should be a continuous process of innovation and it should be included in planning and integration with business strategy. Flexibility of technology integration in the business strategy will facilitate long-term benefits to the organization thus translating to high level of organization performance and having a competitive edge.

Ujunju, Wanyembi and Wabwoba (2012) studied evaluating the role of information communications technology support process towards process of management in institutions of higher learning. The study revealed that ICT has been embraced by higher learning institutions. Integrating ICT in management strategies by higher learning institutions has simplified work and made it easier for university staff to enjoy work thus generating quality decisions in the higher learning institutions.

Chege (2016) examined the influence of technology on strategy and organizational success. The study observed that technology has little effect on strategy in organizations or departments where technology is at the heart of operations. However, technology has a significant effect on strategy implementation process, it makes the business process more efficient with greater output but does not necessarily mean without technology the organization wont function. The study also reveals that management of technology is very crucial in selecting the technology to put in place and evaluating whether the technology has had an impact. The study recommended that management should take into consideration technology and its changes to ensure they identify the best technology that will benefit the organization and increase organization efficiency.

Bengi (2010) studied the role of information technology in strategy formulation in Companies listed at the Nairobi stock Exchange. The study established that organizations that take their strategic planning very seriously integrate technology in the entire strategic management process. Further the study revealed that integration of information communication technology in an organization offers a wide variety of opportunities to formulate strategies. It increases the volume and quality of information for planning and operational control, cutting communication costs and cutting labor cost by avoiding the need to increase workforce. The study concluded that information communication technology should be adopt by all organizations if they want to have a successive strategic management process.

3. Methodology

The study adopted a descriptive research design. The population of this study was all the 250 employees of save the children international Kenya, a non-governmental organization. The researcher selects a sample that represents the entire population of 250 respondents from which a sample of 152 was used. Simple random sampling was used because it gives all elements in the population an equal opportunity. The study used Kothari's formula to calculate the sample size. The researcher used structured questionnaires and interviews as the main tool to collect data because they are ease to analyze. The questionnaires were both structured or closed ended and unstructured or open ended. The questions shared the same set of response categories using the Likert type scale, (kNgech 2012). A pilot study was done to assess the capability of the research instruments to collect the required data for the study. Response obtained during the piloting was used to calculate the reliability coefficient from a correlation matrix. A reliability of at least 0.70 at a = 0.05 significance level of confidence was acceptable, (Hair et al., 2013).

3.1. Model specification

Inferential statistics was done to show the nature and magnitude of relationships established between independent and the dependent variable using regression analysis to make inferences from the data collected to a more generalized condition. the following multiple regression model was used to test the effects of leadership and technology on performance on charitable non-governmental

Y = α + β₁X₁ + β₂X₂ + ε

Where: Y = Strategy implementation, α = Constant Term, X2 = Leadership, X2 = Technology, ε = Constant error

4. Findings

This section contains the analysis of the data and its interpretation. A total of 152 questionnaires were disseminated, 151 were dully filled and returned giving a response rate of 99%. This was sufficient for data analysis (Mugenda & Mugenda, 2003). Thus, this was deemed effective and to offer considerable evidence to be utilized in overview of the different facets of the research under investigation.

4.1. Descriptive statistics

Leadership is a set of behavior that enforces the people to formulate organization goals and then motivate them to jointly contribute in order to achieve organization's goals. The respondents were required to rate the extent they agreed with the statements on leadership. The findings are presented in Table 1; the items for leadership scored mean above 4 indicating that respondents were on agreement on leadership of NGOs.

Information communication technology facilitates communication efficiency, collaboration within and without the firm making information sharing easier. The respondents were required to rate the extent they agreed with the statements on technology. The findings are presented in Table 2;

Performance also refers to the metrics relating to how a particular request is handled, or the act of performing; of doing something successfully; using knowledge as distinguished from merely possessing. The respondents were required to indicate the extent they agree with the statements on performance. The findings are indicated in Table 3;

4.2. Inferential Statistics (test of hypotheses)

The study used correlation test is a technique used to analyze the degree of relationship between the variables. The findings indicate leadership has the strongest positive influence on performance of non-governmental organization (r = 0.603, P < 0.00) implying the relationship is statistically significant. technology has positive correlation on performance (r=0.415, P < 0.008) implying the relationship is statistically significant. The regression model describes how mean of the dependent variable changes with changing conditions. Regression analysis was used to test hypothesis. From the analysis R square was (49.2%) while adjusted R was (47. 8%). The coefficient of determination (R2 = 0.492) reveals that strategy implementation was able to explain 49.2% of performance of non-governmental organization. The findings imply that strategy implementation contributes to performance of non-governmental organizations. The remaining proportion of 50.8 % of performance could be attributed to other factors that were not included in the study, this warrants further empirical research. The findings indicate the model linking strategy implementation (leadership and technology) to performance of non-governmental organizations was significant (F=35.178; p < 0.000). This implies the model was suitable for analysis and interpretation.

Results from table 4 showed that leadership has significant and positive effect on performance of non-governmental organizations (β=0.518, p=.000<.05), thus, hypothesis HO1 was rejected. This infers increase in leadership increase performance of non-governmental organizations. The findings agree with Jabar and Hussein (2015) who notes leadership is essential in strategic management process, organizations that have leadership as a pivotal role like blood and brain ensures result or the outcomes for success are guaranteed. This was further revealed by the organization through favoring teamwork and participatory leadership style as a way of improving cohesiveness in the organization. The study agrees with Yanney (2018) who notes specific type of leadership style and business strategy influences organization performance. In addition, the findings show the organization leadership allows consultations among the employees; this improves the employee confidence level at the same time appreciating their contribution on the way the organization should be run. The findings agree with George et al (2016) who notes leadership that appreciates every staff's contribution plays an important role in strategy implementation

The findings also revealed that technology had significant and positive effect on performance of non-governmental organizations (β=0.152, p=.000<.05), thus, hypothesis HO2 was rejected. This concludes that performance of non-governmental organizations is increase by technology. The findings indicated the organization has embraced the use of technology this has improved the organizations operations. Also, the findings showed the organization has effectively utilized technology in their strategy this has facilitated easy organization planning. The findings further show the organization has implemented the best cost-efficient technology both hardware and software this has reduced costs and at the same time facilitated conducive working environment and improved staff training. The findings concur with Bengi (2010) who noted technology adoption and integration increases the volume and quality of information for planning and operational control, cutting communication costs and cutting labor cost by avoiding the need to increase workforce. The findings differ from Chege (2016) observed that technology has little effect on strategy in organizations or departments where technology is at the heart of operations

a. Dependent Variable: Performance

5. Conclusion and Recommendation

The study findings indicated Save Children International Kenya non-governmental organization meets its expectation and strategy implementation has improved organizations performance. The study concludes that there was a positive significance relationship between strategy implementation leadership and technology and stakeholders) and performance of non-governmental organization. Therefore, the study recommends that has embraced technology the study recommends the organization to ensure there is a continuous update and upgrade their systems to avoid redundancy. Although the study established the organization's leadership style influenced the organization performance, the study recommends that the organization should be careful when selecting and adopting a leadership style. A good leadership style improves performance but a bad leadership may hinder performance.

The study acknowledges that strategy implementation influences performance of non-governmental organizations. As explained by variation of strategy implementation indicated other factors influence performance of non-governmental organizations. This factor may include, political factors, environmental factors and operation specific factor of the non-governmental organizations this can provide a base for future research. In addition, future studies can be extended to other non-governmental organizations within East Africa.

References