Moderating Role of Environmental Dynamism on the Relationship between Opportunity Evaluation and Growth of NGOs in Kenya

Abstract

This study explored the moderating role of Environmental Dynamism (ED) on the relationship between opportunity evaluation and growth of agro-based Non-Governmental Organisations (NGOs) in Kenya. These NGOs play a critical role which includes poverty reduction, through employment creation and food security and therefore their growth is fundamental in continuing to serve the society. Agro-based NGOs in Kenya, operating in dynamic business environments face greater levels of unpredictability and turbulence than those in more stable business environments. The need to link opportunity evaluation and growth is very important for organisations to attain growth. To better understand this relationship, this paper employed a mixed method approach guided by cross-sectional research design. Quantitative and qualitative techniques were employed to analyse the data from 124 agro-based NGOs in Kenya using SPSS version 21 and AMOS graphic analytical software. Structural Equation Model (SEM) was used to analyse the measurement model and test the hypothesized relationships in this study. The study established that, opportunity evaluation has a significant and positive influence on growth of agro-based NGOs and that ED moderates this relationship. The findings are critical to the NGO management who are the core implementers of entrepreneurial projects that satisfy the donors and targeted communities. This study also enriches the social entrepreneurship literature by demonstrating the role of ED on the growth of agro-based NGOs in Kenya and provides a new perspective of conceptualizing development of NGOs in Kenya.

Keywords

• environmental dynamism
• non-governmental organizations
• opportunity evaluation
• growth