Firm’s resource portfolio and its influence on financial sustainability of NGOs in Kenya

Abstract

The aim of the research was to determine the influence of a firm’s resource portfolio on financialsustainability of NGOs in Kenya. The study was underpinned by strategic leadership theory and applieddescriptive correlational research design. The study’s target population was 6,028 comprising activelocal NGOs. It utilized stratified random sampling to select 413 CEOs/board members as respondentsthrough a self-administered questionnaire. Correlation results showed that firm’s resource portfoliohad 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 portfolioexplained 13.9% of the variance in financial sustainability, R~ 73 ~ 2= .139, while the parameter estimatesresults 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 portfoliohas significant influence on financial sustainability. The study recommends strategic leadership teamsto manage appropriately the organization's resource portfolio by organizing and bundling them intocapabilities, structuring their organizations to utilize the capabilities and selecting optimal strategiesto leverage on and exploit these resources to achieve financial sustainability.