You are on page 1of 16

Empirical Investigation of Strategy Implementation in Non-

government organizations
Nurul Afiqah Haji Nor Amin (*)1, Thuraya Farhana Haji Said2, Md Zahidul Islam3,
Safayet Rahman4

ABSTRACT
Strategy implementation is considered as an essential part of
strategic planning because it translates the chosen strategy into
Journal of Business & organizational action. Considering its high failure rates, substantial
Economic Analysis attention should be given to strategy implementation, especially in
(JBEA)
non-government organizations, as most past studies have focused on
by 61.6.253.69 on 03/04/23. Re-use and distribution is strictly not permitted, except for Open Access articles.

Vol. 2, No. 1 (2019) issues prevailing in profit-making entities and the public sector.
Thus, this becomes the aim of this paper to investigate factors
influencing strategy implementation in non-government
J. Bus. Econ. A. 2019.02:19-34. Downloaded from www.worldscientific.com

organizations in Brunei. In order to answer the research aim, a


structured survey was conducted, and both descriptive inference
statistical analysis techniques were used to analyze the data. The
study concludes that organizational structure and leadership have a
strong relation to the strategy implementation in non-government
organizations; it has also been revealed that organizational culture
KEYWORDS
and external factors do not influence strategy implementation. Not
• Strategy implementation only that the results of the study can validate previous research
• Organizational structure studies, but also they can help managers and practitioners to
• Leadership
understand how the four variables identified in the study can
• Organizational culture,
External factors influence strategy implementation within their organization.

Received 24 Jan 2019


Revised 05 Jun 2019
Accepted 10 Jun 2019

CITATION INFORMATION
Amin, N. A. H. N., Said, T. F.H., Islam, M., & Safayet, R. (2019). Empirical Investigation of Strategy
Implementation in Non-government organizations. Journal of Business and Economic Analysis, 2(1), 19-
35.

School of Business and Economics, Universiti Brunei Darussalam,


1,2,3,4

[* corresponding author] nurulafiqah1304@gmail.com

19
JBEA | Vol. 2, No. 1 (2019) Strategy Implementation in NGOs

1. Introduction
Strategy implementation has an important role in any organization, regardless of its
sector for the reason that it encompasses activities to achieve strategic goals and
objectives. However, it has been one of the most challenging aspects as the
involvement of numerous activities can complicate the implementation of the
strategy. Previous studies had mostly focus on strategy implementation of two main
sectors, the public, and private sector than of non-government organizations (NGOs).
NGOs are a non-government non-profit volunteering group that can be organized
locally, nationally, or internationally with a common interest to advocate a specific
issue, such as human rights, environment, education, or health. NGOs have a different
by 61.6.253.69 on 03/04/23. Re-use and distribution is strictly not permitted, except for Open Access articles.

kind of strategies due to the nature of its vision and mission not to maximize profit
but to perform humanitarian functions, provide information to the community and
bring citizen concerns to governments for a policy that needs change (Gil‐Estallo et
J. Bus. Econ. A. 2019.02:19-34. Downloaded from www.worldscientific.com

al., 2006).

Nevertheless, NGOs can utilize management principles such as those in public and
private organizations in terms of having an aim in achieving goals no matter what
situation they are in as they are vulnerable to any external environment changes, such
as social or political changes and financial assistance that could influence the
implementation of their strategy. Thus, NGOs can improve their management by
incorporating strategic management approach (Wilson-Grau, 2003). However,
Backman, Grossman, and Rangan (2000) stated there is a limitation of studies on
strategy implementation in NGOs and this highlights the need to have a conceptual
understanding of strategy implementation in the sector.

In this light, this paper intends to fill this gap in strategy implementation literature by
investigating what are the factors influencing strategy implementation of NGOs in a
small developing country, Brunei Darussalam. Although there is a small number of
NGOs in Brunei, they have almost equal importance with other sectors to achieve the
country’s vision and aspiration. For example, the Society for Community Outreach
and Training aims to conduct activities and programs to decrease poverty. Therefore,
the role of NGOs for the country in meeting the Brunei Vision 2035 cannot be ignored.
Moreover, the nature of legislation in Brunei has ensured that NGOs and the
government can work together and maintain a close relationship (Nexus
Commonwealth Network, n.d.). Therefore, this makes the research context an
interesting one to investigate in terms of what are the factors that influence strategy
implementation in Brunei Darussalam NGOs.

The rest of the paper is organized as follows; the review of relevant literature, the
development of the hypotheses and the description of the methodology adopted in
this research, followed by an analysis of the results. The last two sections discuss the
empirical findings and conclude the research paper with its contribution and
directions for future research.

20
JBEA | Vol. 2, No. 1 (2019) Strategy Implementation in NGOs

2. Literature Review

2.1. Factors affecting strategy implementation


The implementation of strategy in NGO is a crucial process in as it enables them to
achieve their goals (Adongo, 2008; Muthuiya, 2004; Wakiuru, 2011; Analoui and
Karami, 2003). Strategy implementation can be defined as set of activities in short-
term plan (Wheelen and Hunger, 2010) with budget allocated for the activities (Kaplan
& Norton, 2006) that includes the detail steps of the activities in terms of structure,
procedures and authority system (Thompson, Peteraf, Gamble & Strickland, 2011). In
other words, it encompasses activities and actions within an organization for a
strategy to be attainable.
by 61.6.253.69 on 03/04/23. Re-use and distribution is strictly not permitted, except for Open Access articles.

The literature of strategy implementation is rich with both quantitative and qualitative
studies. Several factors such as strategy, structure, systems, values, leadership styles,
J. Bus. Econ. A. 2019.02:19-34. Downloaded from www.worldscientific.com

staff, and skills were often recognized as common factors that influence strategy
implementation (Waterman, Peters & Phillips, 1980). However, amongst the common
factors, most researchers (e.g., Ali & Hadi, 2012; Al-Kandi, Asutay & Dixon, 2013;
Ivancic, 2013; Kalali, Anvari, Pourezzet & Dastjerdi, 2011; Kundu & Manahor, 2012;
Rajasekar; 2014; Qi, 2005) found that organization structure, leadership, and
organizational culture, are strongly linked with strategy implementation.

In the case of NGO, since the sector is vulnerable to the external environments such
as their dependency on an external source for financial support (Lekorwe and
Mpabanga, 2007) and competitors and socio-political influences (Analoui and
Samour, 2012), the external environment should be considered as a factor that
influences strategy implementation in NGOs. As a result, the hypotheses of this study
focus on these four factors such as organization structure, leadership, organizational
culture, and external environment that are seen as relevant in the context of strategy
implementation in NGOs. The next section reviews the literature of strategy
implementation about these factors and the development of the study’s hypotheses.

2.2. Organizational structure and strategy implementation


Buchanan & Huczynski (2004) described the organizational structure as a formal system
of task and reporting relationships that control coordinates, and motivates employees to work
together to achieve organizational goals. It also involves a decision-making process,
communicating of information and chain of command (Olson, Slate & Hult, 2005;
Munyoroku, 2012). A conducive organizational structure enables an organization to
achieve its values, goals, and objectives, which in turn will contribute to the efficiency
and effectiveness of organizational performance (Munyoroku, 2012). In the context of
NGO, Mostashari (2005) mentioned that the organization structure in the sector varies
between the structure used in public and private sector as it is made up of community-
based organizations to form coalitions with other NGOs for particular goals.

21
JBEA | Vol. 2, No. 1 (2019) Strategy Implementation in NGOs

While Metin (2017) stated that having an organic organization structure such as
flexible and adaptable structure can increase the likelihood of the sustainability of
NGOs, Marquez (2015) argued that organizational structure in NGOs needs to have
some governance such as rules and regulation when making a crucial decision. In
other words, the organizational structure in NGOs can vary from a rigid structure to
a flexible one depending on the context. Although there are limited studies regarding
the organization structure of NGOs in Brunei, generally, it can be said that the
organizational structure in Brunei tends to be formalized and centralized (Nor Amin,
2018) following the bureaucratic administrative system (Steiner, 2018) as clear
instructions, manuals, and organizational regulations (Janićijević, 2013) may enhance
the implementation of strategy. Hence, investigating to what extent organizational
by 61.6.253.69 on 03/04/23. Re-use and distribution is strictly not permitted, except for Open Access articles.

structure can influence NGOs in Brunei implement its strategy.

Thus, it leads to the formulation of the first hypothesis:


J. Bus. Econ. A. 2019.02:19-34. Downloaded from www.worldscientific.com

H1. Organizational structure has a relationship strategy implementation.

2.3. Leadership and strategy implementation


Leadership is mainly concerned with managing and coordinating employees,
handling conflicts, implementing procedures, building competing activities in
employees’ relation, communicating organizational vision, involving end users and
procedures of leadership activities (Chemwei et al., 2014). In other words, leadership
is the driver of strategy implementation. Several authors (such as Azhar et al., 2013;
Cater & Pucko, 2010; Fourie, 2007; Jooste & Fourie, 2009; Rajasekar, 2014) have found
leadership to have a positive influence with strategy implementation. For example,
Jooste & Fourie (2009) argued that the majority of their respondents agreed that
supportive leadership actions, such as maintaining and developing core competencies
of the employees, contribute positively to effective strategy implementation in their
organizations. According to Hailey (2006), leaders in NGOs manage issues such as
donors, political, governmental issues, and the needs of the local community.
Therefore, it is prominent for leaders in NGOs have a set of attributes, such as
integrity, credibility, and managerial ability shared values and deep-rooted contacts
and approaches with the community and also with peer organizations that could
overcome the challenges faced (Hailey, 2006; Mitchell, 2013).

For NGOs that are commonly working closely with the government, their leaders
could be considered as policy entrepreneurs as they have the power to influence
policy-makers (Marquez, 2015). In Brunei, cultural aspects have a significant impact
on leadership preference in Brunei Darussalam (Nor Amin, Wuen and Ismail, 2017).
The study further revealed that a directive leadership consists of the leader directing
and giving clear direction is preferred rather than the one that gives autonomy in the
country. This is common to be seen in a country such as Brunei and other South East
Asia countries to which Swierczek (1991) stated that a dominant autocratic leadership
trait is embedded in South East Asia countries. Thus, this suggests the importance of

22
JBEA | Vol. 2, No. 1 (2019) Strategy Implementation in NGOs

leadership role in all sectors, including NGOs and the second hypothesis has been
developed:

H2. Leadership has a relationship with strategy implementation

2.4. Organizational culture and strategy implementation


Organizational culture is a process of sharing beliefs and values which manage the
behavior of people in organizations (Robbins & Coulter, 2008). Organizational culture
influences strategy implementation due to it being a fundamental component in each
employee (Schein, 2009). Brenes, Mena, and Molina (2008) argued that if
organizational culture is supportive of principles and values in a new strategy, it can
result in the successful implementation of the organizational strategy. Other authors
by 61.6.253.69 on 03/04/23. Re-use and distribution is strictly not permitted, except for Open Access articles.

found that organizational culture that creates a sense of belonging within the
organizational members to the organizational objectives have a positive influence on
strategy implementation (Ahmadi et al., 2012; Al-Kandi et al., 2013). In the case of
J. Bus. Econ. A. 2019.02:19-34. Downloaded from www.worldscientific.com

NGOs. Marquez (2005) stated that it is essential for the members to have shared
principles and beliefs to shape the identity of the organisations in achieving their
objectives. For example, a study conducted by Duke & Edet (2012) has revealed that
there was a positive association between organizational culture and the performance
of NGOs. Wanjiku and Agusioma (2014) further added that an organizational culture
that needs to be in place for implementing the strategy in NGOs have to be
competitive and entrepreneurial as the sector work in an environment that needs to
maximize their ability to be innovative, to be creative and to be independent. In line
with this view, an organizational culture that promotes flexibility and innovation
should be seen as a significant factor when implementing a strategy in NGOs.
However, in the Brunei context, there is a tendency to follow the traditional pattern
which corroborates with the classical bureaucratic form of Brunei (Rashid and Said,
2018; Said, 2013). This is contradicting to previous studies that believed culture that
promotes flexibility and innovation should be seen as a significant factor when
implementing a strategy in NGOs. Thus, the relevance of this culture needs to be
investigated in the context of Brunei and this leads to the third hypothesis of the study:

H3. Organizational culture has a relationship with strategy implementation

2.5. External environment and strategy implementation


NGO is highly susceptible to the external environment, although Kalali et al., (2011)
stated that external environment attributes that consists of uncertainty,
administrative, political, social and culture, economic and shareholder, have minimal
influence over strategy implementation. On the other hand, Analoui and Samour
(2012) argued that external environment is an essential factor to take into account
when looking at strategy implementation in NGO, as the environment is uncertainty,
can be uncontrollable, and it can hinder strategy implementation mainly when
competitors, donors, economy, socio‐political influences, and technology can
affect NGOs. Although Brunei is relatively a stable country where it possesses a

23
JBEA | Vol. 2, No. 1 (2019) Strategy Implementation in NGOs

limited number of NGOs, funding problems that emerged from slow economic
growth can cause a restriction to generate fund from donors to carry out activities
and programs for the cause they believe in. Schwengeret al. (2014) stated that
NGOs need to focus on finding approaches to overcome the challenges from the
external environment that are consistent with their moral ideals and practices. This
leads to the last hypothesis of this paper:

H4. The external environment has a relationship with strategy implementation

3. Research Model
Based on the literature, this study has focused on four factors, which are
by 61.6.253.69 on 03/04/23. Re-use and distribution is strictly not permitted, except for Open Access articles.

organizational structure, leadership, organizational culture, and external


environment, with the argument that these factors can influence the implementation
of the strategy of NGOs in Brunei Darussalam. From the discussion of the literature,
J. Bus. Econ. A. 2019.02:19-34. Downloaded from www.worldscientific.com

four hypotheses were developed to test the context of NGOs in Brunei. By testing the
hypotheses; it can validate previous research studies and add new conceptual
knowledge to the existing literature of strategy implementation and also new
empirical knowledge by investigating the strategy implementation in NGOs in
Brunei. Figure 1 shows the framework used for this research.

Figure 1: The Research Model

4. Research methodology
This study utilized quantitative methods as Vargas Hernández, Pérez, & Rangel (2016)
stated that such methods could contribute to the knowledge of strategy and
administration fields. Since there are limited empirical studies on NGOs in Brunei, it
is vital that information is investigated on a large scale using quantitative methods,
which can produce generalizability in the context.

Using a survey, the instruments were first assessed on its common method bias. In
order to do so, this study followed methods provided by Podsakoff et al. (2003) to

24
JBEA | Vol. 2, No. 1 (2019) Strategy Implementation in NGOs

reduce common method bias. For instance, the items of the questionnaires were
adapted from different sources such as Zaribaf & Hamid (2008) and Chemwei et al.
(2014). To ensure validity, the questions were improved through pre-testing study
whereby the items were ensured in terms of its concepts, simplicity, and conciseness.
During the data collection, the respondents were ensured of their anonymity.

The questionnaires were distributed to 40 active NGOs specialized in human or


environment advocacy group in Brunei. In Brunei Darussalam, unlike international
NGOs, the strategies of its NGOs are more localized. The response rate from the study
is 76 percent out of a total of 150 questionnaires. The respondents consisted of a top
managerial and senior position in the organizations due to their extensive knowledge
of their organization. Demographic data of the respondents were included in the first
by 61.6.253.69 on 03/04/23. Re-use and distribution is strictly not permitted, except for Open Access articles.

section of the questionnaire. A 5-point Likert scale was utilized in the questionnaire,
and then, statistical analysis has been undertaken to analyze questionnaire responses.
Cronbach’s alpha was used to assess the internal consistency of the items, while linear
J. Bus. Econ. A. 2019.02:19-34. Downloaded from www.worldscientific.com

regressions were used for hypothesis testing.

5. Data analysis and results

5.1. Sample characteristics


Sixty-one percent of the respondents were female, while the remaining 39 percent
were male. The highest qualification of the respondents (49 percent) was a degree
holder. As the research only focused on managerial or senior positions, 20 percent of
the respondents are the director/CEOs/president or the founder of the organization,
equal numbers of 12 percent from senior and mid-level managers, 23 percent are the
executives, and the remaining 33 percent are the senior members.

Most of the respondents have been employed in the organization for one to three years
(37 percent). Thirty-seven percent of the respondents stated there were less than ten
people in their organization, 36 percent had ten to twenty people in their organization,
21 percent had twenty-one to thirty people in their organization, and only a small
number of respondents that is 6 percent stated they have thirty-one to forty people in
their organizations.

5.2. Regression analysis


The means, standard deviations, and reliability statistics are presented in Table 1. The
mean values range between 3.8 to 4.5 on the five-point Likert scale. While the
standards deviation was between 0.47 to 0.73. These indicate that the answers of the
respondents were consistent. Cronbach’s Alpha has been used to determine its
internal consistency, whereby the higher the score, the more reliable the generated
scale is. Nunnaly (1978) has indicated that 0.70 is to be an acceptable reliability
coefficient. Cronbach’s Alpha for all the variables shows a value equal to and more
significant than 0.70.

25
JBEA | Vol. 2, No. 1 (2019) Strategy Implementation in NGOs

Table 1: Summary of reliability analysis


Variables Mean Standard Deviation Cronbach’s Alpha
Strategy implementation 4.0 0.73 0.92

Organizational structure 4.3 0.51 0.75

Leadership 4.5 0.47 0.85

Organizational culture 4.4 0.52 0.85

External Factors 3.8 0.61 0.70

Before running regression analysis to test the hypotheses, assumptions of multivariate


by 61.6.253.69 on 03/04/23. Re-use and distribution is strictly not permitted, except for Open Access articles.

analyses, including their multicollinearity and normality, were first investigated. In


terms of multicollinearity, it did not have a problem since table 4 shows that the VIF
is ranging from 1.2 - 2.7, and the assumption is that VIF that is less than ten is deemed
J. Bus. Econ. A. 2019.02:19-34. Downloaded from www.worldscientific.com

acceptable. In terms of its normality, Kolmogorov-Smirnov and Shapiro-Wilk tests


were conducted, and the result has shown that the data is non-normal (significance
value less than 0.05). However, Field (2018) emphasized that this is common in a small
sample as the significance test will not have the power to detect non-normality.
Further test using Skewness and Kurtosis was done to examine the normality of the
data. The data showed a skewness value ranging from -1.534 to 0.428, indicating a
skewed distribution. However, the skewness value was still considered satisfactory,
as Kline (2010) mentioned that the absolute value of skewness of all variables that are
less than three does not violate the normality of the data. In terms of the kurtosis value,
the data confirms that it is still in the normal distribution range (between -0.826 and
3.441) since Park & Schutz (2005) stated that a value not more than 3 or 4 is regarded
satisfactory for a multivariate kurtosis value. In summary, the assumptions of
multivariate in this study have not been violated.

In order to examine the relationship of the variables with regards to strategy


implementation, linear regression was used. Table 2 indicates that the adjusted R
square is 0.542, which means that the independent variables explain 50.2% of the total
effect on strategy implementation. Durbin Watson of 1.793 also shows a positive
autocorrelation between the independent variables with strategy implementation.
Table 3 indicates that the significance of the model is acceptable (p< 0.05). For the main
findings reflected from Table 4, the regression analysis indicates that only hypothesis
1 and hypothesis 2 are accepted as the p-value is less than 0.05. Therefore, both
organizational structure and leadership have a relationship with strategy
implementation as both shows value of 0.00 and 0.03, respectively. Moreover, the
correlation between strategy implementation is positively strong with organizational
structure (+0.65) and is positively moderate with leadership (+0.39). On the other
hand, although organizational culture shows a moderate correlation (+0.50) with
strategy implementation, the p-value is not significant (p < 0.07). Meanwhile, the

26
JBEA | Vol. 2, No. 1 (2019) Strategy Implementation in NGOs

correlation between external environments is negligible with strategy implementation


and that the p-value is not significant (p < 0.15).

Table 2: Model Summary


Adjusted R Std. the error of
Model R R Square Square the Estimate Durbin-Watson

1 .736a .542 .502 .470 1.79


a. Predictors: (Constant), meanEE, meanL, meanOC, meanOS
b. Dependent Variable: meanSI

Table 3: ANOVAa
Model Sum of Squares df Mean Square F Sig.
by 61.6.253.69 on 03/04/23. Re-use and distribution is strictly not permitted, except for Open Access articles.

1 Regression 12.0 4 3.00 13.6 .000b


Residual 10.2 111 .221
Total 22.2 115
a. Dependent Variable: meanSI
J. Bus. Econ. A. 2019.02:19-34. Downloaded from www.worldscientific.com

b. Predictors: (Constant), meanEE, meanL, meanOC, meanOS

Table 4: Coefficients
Model Unstandardized Standardized Correlations Collinearity Statistics
Coefficients
B Std. Coefficients
Beta t Sig. Tolerance VIF
Error
1 (Constant) .930 .785 1.19 .242
meanOS 1.00 .216 .764 4.66 .000 0.65 .370 2.701
meanL -.379 .245 -.257 1.55 .03 0.39 .359 2.784
meanOC .394 .174 .298 -2.26 .07 0.50 .574 1.743
meanEE -.274 .124 -.250 -2.22 .15 -0.08 .788 1.270
a. Dependent Variable: meanSI

6. Discussion
As shown in the regression analysis, the organizational structure was found to have a
strong relationship with strategy implementation. This result shows that
organizational structure is vital for members of NGOs who are committed to carrying
out their responsibilities. This also points out that Brunei administrative system has
influence (Steiner, 2018) NGOs to adopt a formalized and centralized structure (Nor
Amin, 2018). Although the findings differ with NGOs in another context where they
promote organic structure to have effective strategy implementation (Metin, 2017),
this study agrees with a study by Marquez (2015) that argued that organizational
structure in NGOs needs to have some governance such as rules and regulation when
making a crucial decision. Hence, the importance of context cannot be overlooked that
in this case, the bureaucratic structure appeared to be relevant to carry out strategy
implementation in Brunei NGOs.

In the literature, there are different views on the role of leadership in strategy
implementation ranging from directive to supportive leadership style. This study has
revealed that leadership that is supportive and communicative has a positive

27
JBEA | Vol. 2, No. 1 (2019) Strategy Implementation in NGOs

relationship with strategy implementation. Although previous studies of leadership


in Brunei has indicated their preference towards directive leadership (Nor Amin et al.,
2017), since NGOs are vulnerable to unpredictable demand of stakeholders such as
donors, governments and the needs and imperatives of the local community, other
leadership attributes such as leaders having the ability to inculcate shared values and
deep-rooted contacts with the community and also with peer organizations is essential
for the sector to be working on any challenges coming from the external environment
to achieve their particular goals.

As for organizational culture, the result of the study has shown that organizational
culture does not have a relationship with strategy implementation which contradicts
with Wanjiku and Agusioma (2014) that found that innovative and flexible
by 61.6.253.69 on 03/04/23. Re-use and distribution is strictly not permitted, except for Open Access articles.

organizational culture to be one of the most critical factors in strategy implementation.


The reason that organizational culture is considered not significant in this study is
because the NGOs in Brunei tend to follow the traditional pattern which corroborates
J. Bus. Econ. A. 2019.02:19-34. Downloaded from www.worldscientific.com

with the classical bureaucratic form of Brunei organizations (Rashid and Said, 2018;
Said, 2013).

Although Duke & Edet (2012) stated that the bureaucratic form could lead to lack of
involvement with members in the organization in decision-making, the dominant
bureaucratic culture existed in this study proved to be necessary to carry out strategy
implementation (Said, 2013). In this case, a lack of flexible organizational culture to
implement the strategy is not necessarily a disadvantage because the importance of
having an organizational culture that suits the context of NGO is more important to
share the core values to form judgments and to take action, which in return will create
an effective strategy implementation. Thus, similar to Lawrence & Nohria (2002) and
Wilber (2000), it is essential to take into account the cultural perspective during
strategy implementation. NGOs in Brunei can focus and leverage on these specific
variables towards improving their overall organizational cultures, such as to share a
common goal, consistent communication, and transparency.

An external environment such as economic, governmental institutions, legal and


political complication, legislation and regulation, and uncontrollable events were
found in this study to have no relationship with strategy implementation. The study
indicated negligible on the correlation coefficient index, which supports the research
finding by Kalali et al. (2011) that mentioned that the external environment has the
lowest impact on strategy implementation. The result revealed that external factors
receive less attention because it is believed that they have limited influence. This may
be due to the external environment of Brunei has been subjected to economic and
social stability resulting from strong regulation of the government (Hussainmiya,
2002).

Furthermore, since the country is made up of only a small number of NGOs,


competition for donors is also limited. Another factor is also because the NGOs are

28
JBEA | Vol. 2, No. 1 (2019) Strategy Implementation in NGOs

working closely with the government that may indicate stable funding. This differs in
another country as such that a study by Kitua (2015) found out that political system
instability, such as acts of terrorism affects a considerable part of the organization's
activities. Hence, the external environment may affect the nature of the organization’s
mission, objectives, and policies. However, since Courtney (2002) stressed the
necessity of the opportunities and threats analysis for NGOs in order to understand
an effective way of the conditions of their external environment, therefore, NGOs in
Brunei may require these analyses to figure out the external surroundings impacting
the main activities of NGOs in the future.

7. Implications, Limitations, and Conclusion


by 61.6.253.69 on 03/04/23. Re-use and distribution is strictly not permitted, except for Open Access articles.

This research can contribute to the increasing line of research on strategy


implementation, especially on the non-government organizations in Brunei. Since
most studies are done on main sectors, this study fills an empirical gap of knowledge
J. Bus. Econ. A. 2019.02:19-34. Downloaded from www.worldscientific.com

about strategy implementation in NGOs in Brunei. The findings of this study have
confirmed some of the previous studies and provided more insights such as based on
empirical evidence of this study that organizational structure and leadership
positively influence strategy implementation in Brunei Darussalam NGOs, while
organizational culture and external environment factor have no relation with strategy
implementation. Although this study showed that organizational culture and external
factors are not significant towards strategy implementation, there will be times
wherein a case of economic crisis, behavioral factors can shape resource allocation
(Martian & Lee, 2017). For instance, thus, these factors should also be taken into
consideration for organizational improvement.

The practical contribution of this research is to provide an understanding of the Brunei


government and community on how to continuously support and develop NGOs.
Therefore, the existing NGOs can understand what are the factors that can influence
or facilitate their strategy implementation in achieving their goals. As one of the
earliest studies on the association of these factors with strategy implementation of
NGOs in Brunei, this paper is expected to stimulate scholarly interest and provide a
platform for further research.

The study has several limitations. First, the sample of the study only targeted at
managers or senior level committees of NGOs, thus giving a small sample size as there
are only 40 active NGOs in the sultanate. Because of limited time and research access,
to keep this study within manageable proportions for rigorous investigation, only four
factors were considered relevant in the context of NGOs in Brunei, and this creates
opportunities for future researchers to expand the study. This study has focused only
on the implementation aspect of the strategic management of NGOs, therefore having
a broader approach in future research would give much more comprehensive
understanding of the subject in terms of strategic management for NGOs.

29
JBEA | Vol. 2, No. 1 (2019) Strategy Implementation in NGOs

References
Adongo, W., (2008). Challenges of strategy implementation in health-focused NGOs in
Nairobi. (Unpublished Master Thesis thesis). University of Nairobi: Nairobi.

Ahmadi, A. S., Salamzadeh, Y., Daraei, M., & Akbari, J. (2012). Relationship between
Organizational Culture and Strategy implementation: Typologies and Dimensions.
Global Business and Management Resources: An International Journal, 4(3 & 4), 287-299

Ali, M., & Hadi, A., (2012). Surveying and Identifying the Factors Affecting Successful
Implementation of Business Strategies in Companies of Fars Province Industrial
Towns. International Journal of Business and Social Sciences, 3(1), 265-272
by 61.6.253.69 on 03/04/23. Re-use and distribution is strictly not permitted, except for Open Access articles.

Al-Kandi, I., Asutay, M., & Dixon, R. (2013). Factors Influencing the Strategy
implementation Process and Its Outcomes: Evidence from Saudi Arabian Banks.
J. Bus. Econ. A. 2019.02:19-34. Downloaded from www.worldscientific.com

Journal of Global Strategic Management, 7(2), 5-15.

Analoui, F., & Karami, A., (2003). Strategic management: In small and medium enterprises.
London: Thomson Learning.

Analoui, F & Samour, A. (2012) Strategic management: the case of NGOs in


Palestine. Management Research Review. 35(6), 473 - 489

Azhar, A., Ikram, S., Rashid, S., & Saqib, S. (2013). The Role of Leadership in Strategy
Formulation and Implementation. International Journal of Management &
Organizational Studies, 1(2), 32-38.

Backman, E. V., Grossman, A., & Rangan, V. K. (2000). Introduction: Supplemental


issue new directions in nonprofit strategy. Nonprofit and Voluntary Sector Quarterly,
29, 2-8

Brenes, E.R., & Mena, M, and Molina, G. E (2008). Key success factors for strategy
implementation in Latin America. Journal of business research, 61(6), 590–598.

Buchanan, D., Huczynski, A. (2004). Organizational Behaviour. An Introductory


Text. 5th Edition. Essex: Prentice Hall.

Cater, T., & Pucko, D. (2010). Factors of effective strategy implementation: Empirical
evidence from Slovenian business practice. Journal for East European Management
Studies, 15(3), 207-236.

Chemwei, B., Leboo, C., & Koech, S. (2014). Factors that impede the implementation
of strategic plans in secondary schools in Baringo District, Kenya. International Journal
of Humanities and Social Sciences, 4(5), 114-120.

30
JBEA | Vol. 2, No. 1 (2019) Strategy Implementation in NGOs

Courtney, R (2002). Strategic Management for Voluntary Non-Profit Organizations.


London: Routledge

Fourie, B. J., (2007). The Role of Strategic Leadership in Strategy implementation. (Doctoral
thesis), Johannesburg: University of Johannesburg

Gil‐Estallo, M.A., Giner‐de‐la‐Fuente, F. and Griful‐Miquela, C. (2006). The strategic


social map of a nongovernmental organization. International Advances in Economic
Research, 12(1), 105‐14.

Hailey, J (2006). NGO Leadership Development. A review of the literature. Praxis, Paper
10. Accessed Retrieved from
by 61.6.253.69 on 03/04/23. Re-use and distribution is strictly not permitted, except for Open Access articles.

http://www.dochas.ie/Shared/Files/2/INTRAC_Praxis_Paper_10_NGO_Leaders
hip.pdf On Friday, 16 December 2016.
J. Bus. Econ. A. 2019.02:19-34. Downloaded from www.worldscientific.com

Hussainmiya, B. A (2002). “Brunei Darussalam: A Nation in Peace,” Bulletin of the


Southeast Asian Conflict Resolution Network, March-June, pp 14-16. Penang

Ivancic, V., (2013). The Biggest Failures in Managing Strategy Implementation.


Interdisciplinary Management Research. 9, 197- 208

Janićijević, N., (2013). The mutual impact of organizational culture and structure.
Economic Annals. 58(198), 35-60

Jooste, C., & Fourie, B., (2009). The role of strategic leadership in effective strategy
implementation: Perceptions of South African strategic leaders. Southern African
Business Review, 13(3), 51-68

Duke, J & Edet, G. H (2012). Organizational Culture as a Determinant of Non-


Governmental Organization Performance: Primer Evidence from Nigeria.
International Business and Management, 4(1), 66-75.

Kalali, N. S., Anvari, M. R. A. A., Pourezzat, A. A. and Dastjerdi, D. K (2011). Why


Does Strategic Plans Implementation Fail? A Study in the Health Service Sector of
Iran. African Journal of Business Management, 5(23), 9831-9837

Kaplan, R.S. &Norton, D.P. (2006). How to Implement a New Strategy without
Disrupting Your Organization. Harvard Business Review. 84(3), 100–109

Kitua, S. M (2015). External Factors Affecting Management of NGOs in Somalia: A Case of


Somali Aid Foundation (SAF). (Unpublished Master Thesis). United Stated
International University: Africa

Kline, R. B., (2010). Principles and practice of structural equation modeling. Guilford, New
York.

31
JBEA | Vol. 2, No. 1 (2019) Strategy Implementation in NGOs

Kundu, G. K, and Manohar, M. B (2012). A unified model for implementing lean


and CMMI for Services (CMMI‐SVC v1.3) best practices, Asian Journal on Quality,
13(2), 138-162

Lawrence, P.R. & Nohria, N. (2002) Driven: How Human Nature Shapes our Choices. San
Francisco: Jossey Bass

Lekorwe, M & Mpabanga, D. (2007). Managing Non-Governmental Organizations in


Botswana. The Innovation Journal: The Public Sector Innovation Journal, 12(3), 1 – 18.

Olson, E. M., Slater, S. F., & Hult, T. M. (2005). The importance of structure and
process to strategy implementation. Business Horizons, 48(1), 47-54
by 61.6.253.69 on 03/04/23. Re-use and distribution is strictly not permitted, except for Open Access articles.

Marquez, L. M. M. (2015). The Relevance of Organizational Structure to NGOs’


Approaches to the Policy Process. VOLUNTAS: International Journal of Voluntary and
J. Bus. Econ. A. 2019.02:19-34. Downloaded from www.worldscientific.com

Nonprofit Organizations, 27(1), 465–486.doi:10.1007/s11266-015-9555-5

Metin, H., (2017). The Effect of Organizational Structure and NGO-NGO


Relationships on Sustainability in NGOs. European Journal of Economics and Business
Studies. 9(1), 194-198

Mostashari, A., (2005). An Introduction to Non-Governmental Organizations Management.


Iranian Studies Group.

Mitchell, G. E., (2013). The construct of organizational effectiveness perspectives from


leaders of international nonprofits in the United States. Nonprofit and Voluntary Sector
Quarterly, 42, 324-345.

Munyoroku, K., (2012). The role of Organizations Structure on Strategy implementation


among food processing companies in Nairobi. (Unpublished Master Thesis). Nairobi:
School of the Business University of Nairobi.

Muthuiya, F. A., (2004). Strategy Implementation and its challenges in Non-Profit


Organizations in Kenya. The Case of AMREF. (Unpublished Master Thesis), University
of Nairobi: Nairobi

Nexus Commonwealth Network. (n.d.). Find National NGO expertise in Brunei


Darussalam. Retrieved April 30, 2019, from
http://www.commonwealthofnations.org/sectors-
brunei_darussalam/civil_society/national_ngos_civil_society/

Nor Amin, N. A. (2018). Brunei Darussalam’s institutional development strategy:


components, achievements, and challenges. Asia Pacific Journal of Public
Administration. 40(2), 142-146

Nor Amin, N. A., Wuen, C. H., Ismail, A. (2017). Leadership style desired by youth in

32
JBEA | Vol. 2, No. 1 (2019) Strategy Implementation in NGOs

Asia. Journal of Management Development. 36(10), 1206-1215

Said, T. F. H (2013). Performance Management in the Brunei Public Sector. Paper


Presented at Proceedings of European Business Research Conference, Rome, Italy

Steiner, K (2018), Branding Islam: Islam, Law, and Bureaucracies in Southeast Asia,
in Journal of Current Southeast Asian Affairs, 37, 1, 27–56.

Swierczek, F.W. (1991), “Leadership and culture: comparing Asian managers,”


Leadership and Organization Development Journal, 12(7), 3 - 10

Thompson, A. A., Peteraf, M.A., Gamble, J.E & Strickland, A. J. (, 2011). Crafting and
by 61.6.253.69 on 03/04/23. Re-use and distribution is strictly not permitted, except for Open Access articles.

Executing Strategy (18th ed). McGraw-Hill: United States

Park, L., & Schutz, R. W., (2005). An introduction to latent growth models: analysis of
repeated measures physical performance data. Research Quarterly and Sport, 76(2),
J. Bus. Econ. A. 2019.02:19-34. Downloaded from www.worldscientific.com

176–192.

Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common
method biases in behavioral research: A critical review of the literature and
recommended remedies. Journal of Applied Psychology, 88(5), 879-903.

Qi, H (2005). Strategy Implementation: The impact of Demographic Characteristics


on the Level of Support Received by Middle Managers. Management International
Review. 45(1), 45-70

Rajasekar, J. (2014). Factors affecting Effective Strategy implementation in a Service


Industry: A Study of Electricity Distribution Companies in the Sultanate of Oman.
International Journal of Business and Social Sciences, 5(9), 169-183.

Rashid, F. R. B. H., & Said, T. F. H. (2018). Strategic responses towards a performance


management and measurement system in the public sector of a developing country.
International Journal of Public Sector Performance Management, 4(4), 393-410

Robbins, S. P & Coulter, M (2005). Management. Upper Saddle River, NJ: Pearson
Prentice Hall

Schwenger, D., Straub, T., Borzillo, S. (2014). Non-governmental organizations:


strategic management for a competitive world. Journal of Business Strategy. 35(4),
11-19, https://doi.org/10.1108/JBS-11-2013-0105

Schein, E. H., (2009). Coming to a new awareness of organizational culture. Sloan


Management Review, 25(2), 3-16

Janićijević, N., (2013). The Mutual Impact of Organizational Culture and Structure.
Economic Annals, 58(198), 35–60.

33
JBEA | Vol. 2, No. 1 (2019) Strategy Implementation in NGOs

Kline, R. B., (2010). Principles and practice of structural equation modeling. Guilford, New
York.

Park, L., & Schutz, R. W., (2005). An introduction to latent growth models: analysis of
repeated measures physical performance data. Research Quarterly and Sport, 76(2),
176–192.

Vargas Hernández, J. G., Pérez, A., & Rangel, A. C. (2016). A Review of Research
Methods in Strategic Management; What Have Been Done, and What is Still Missing.
Journal of Knowledge Management Economics and Information Technology, 1(2).

Waterman, R. Jr., Peters, T. & Phillips, J.R. (1980). Structure Is Not an Organization.
by 61.6.253.69 on 03/04/23. Re-use and distribution is strictly not permitted, except for Open Access articles.

Business Horizons, 23(3), 14–26.

Wakiuru, M. C., (2011). Challenges of strategy implementation facing CNFA as an


J. Bus. Econ. A. 2019.02:19-34. Downloaded from www.worldscientific.com

International NGO in Kenya on Kenyan programs. (Unpublished Master Thesis),


University of Nairobi: Nairobi.

Wilber, K., (2000). A Theory of Everything: An Integral Vision for Business, Politics,
Science, and Spirituality. Boston: Shambhala

Wilson-Grau, R., (2003). The Risk Approach to Strategic Management in


Development NGOs. Development in Practice. 13(5), 533-536

Wheelen, T. L., & Hunger, J. D. (2010). Strategic management and business policy:
Achieving sustainability. Upper Saddle River, N.J: Prentice Hall

Zaribaf, M., & Hamid, B., (2010). An Effective Factors Pattern Affecting Implementation
of Strategic Plans. (Unpublished Master Thesis). Iran.: Islamic Azad University

34

You might also like