Structural equation modeling of the relationship between external analysis and performance of national non-governmental organizations in the health sector of Kenya

Abstract

The primary purpose of this study was to apply structural equation modeling (SEM) and confirmatory factor analysis (CFA) to establish the relationship between external analysis of micro factors and the performance of non-governmental organizations (NGOs) in the health sector of Kenya. The study utilized a descriptive cross-sectional research design and a positivist research philosophy. The study’s target population was 564 program directors and chief executive officers (CEOs) from 282 national
NGOs in the health sector registered with the NGO coordination board. A structured questionnaire was used to collect data from a sample size of 234 program directors and CEOs who were selected using a stratified random sampling procedure. The data were analyzed using descriptive statistics (percentages, frequencies, means, and standard deviations) and inferential statistical methods (CFA and SEM). Data analysis was aided by Analysis of Moment Structures (AMOS) Version 26 and Statistical Package for Social Sciences (SPSS) Version 26. The outcomes of the study revealed that conducting external analysis of micro factors had a significant influence on the performance of national NGOs in the health sector in Kenya (β = 0.559, CR = 4.642, p< 0.05). According to the findings, external analysis of the task environment is essential for national NGOs in the health sector in Kenya to achieve their organizational performance goals. The study has implications for national NGOs in the health sector to routinely analyze the task environment to ensure that all micro factors are aligned to the strategies of the organization and thus enhance organizational performance.