Strategic Congruence on The Performance of Non-Profit Organizations in Kenya: A Case of Compassion International Child Development Centres in Nyanza Region

Abstract

Purpose: The main objective of the study was to investigate the effect of strategic congruence on the performance of non-profit organizations in Kenya: a case of Compassion International Child Development Centres in Nyanza Region.

Methodology: The study used a descriptive research design and focused on three clusters in Nyanza region with 47 Child Development Centres (Migori 13, Kisumu-Siaya 18 and Homabay 16) with a target population of 149 staff. The staff were the unit of observation, while the CDCs was the unit of analysis. The population was sampled using stratified random sampling to achieve 109 CDC staff, with an additional 10% incorporated to address non-response, resulting in a new sample size of 121. Data was collected using questionnaires, and pre-testing of the questionnaire was conducted on 10% of the total main sample, targeting 12 CDC staff, to ensure validity and reliability. Validity was determined using the Kaiser-Meyer-Olkin test, while reliability was tested using the Cronbach Alpha coefficient with a threshold of 0.7. The study analyzed data using descriptive and inferential statistics. Key statistical measures included beta values, p-values, R², and t-values, with a significance level of p<0.05. The overall results were presented using database tables, visualizations, patterns, and charts.

Results: The findings show that environment congruence has the strongest positive impact on organizational performance, with an unstandardized coefficient of 0.634 and a standardized Beta of 0.426 (p < 0.001). Strategic leadership follows with an unstandardized coefficient of 0.352 and a Beta of 0.347 (p < 0.001). Cultural congruence, while still significant (p < 0.001), has a weaker effect with a coefficient of 0.168 and a Beta of 0.253. Structural congruence also positively affects performance, with a coefficient of 0.211 and a Beta of 0.209 (p = 0.005). The regression model confirms that environment congruence and strategic leadership are key predictors of performance.

Unique contribution to theory, policy and practice: The study contributes significantly to both theoretical frameworks and practical knowledge within the field of strategic management, particularly concerning non-profit organizations (NPOs) in Kenya. By examining the effect of strategic congruence on the performance of Compassion International Child Development Centres (CICDC) in the Nyanza region, this research provides insights that enhance understanding of how alignment between organizational strategies and external environments can influence effectiveness and impact. The study's theoretical contribution lies in its extension and validation of established frameworks within strategic management, particularly in the context of non-profit organizations (NPOs). By anchoring the research on Dynamic Capability Theory, Resource-Based View Theory, and Organizational Theory, the study elucidates how strategic congruence—defined as the alignment of an organization’s goals, activities, and resources with its mission and external environment—affects performance outcomes.