Holistic Marketing Practices, Organizational Characteristics, External Environment and Performance of Non-Govermental Organizations in Nairobi City County, Kenya

Abstract

The aim of this study was to examine the effects of holistic marketing, organizational characteristics, and external environment on performance of non- governmental organizations in Nairobi City County, Kenya. The research problem was based on contradicting views regarding adoption of holistic marketing in not for profit organizations and the fact that many non-governmental organization were facing financial, program sustainability and institutional problems that hampered their delivery of services. The specific objectives were to establish the effect of holistic marketing on performance of NGOs; determine the effect of organizational characteristics on performance of NGOs; evaluate the effect of external environmental factors on performance of NGOs; establish the influence of organizational characteristics on relationship between holistic marketing and performance of NGOs; determine the influence of external environmental factors on relationship between holistic marketing and performance of NGOs and to examine the joint effect of holistic marketing, organizational characteristics and external environmental factors on performance of NGOs. The study is anchored on the holistic marketing theory, relationship marketing theory, integrated marketing theory, internal marketing theory, social marketing theory and the marketing of services model. The study was guided by positivistic philosophy and adopted descriptive cross-sectional survey design. The target population of the study was 1241 NGOs located in Nairobi City County. A sample size of 153 NGOs arrived at through Cochran’s formula was selected but only 122 participated representing a response rate of 79%. The study used simple regression analysis to test hypothesis where holistic marketing was found to have a significant effect on performance of NGOs with beta coefficient 0.765 p value = 0.000. Organizational characteristics had statistically significant effect on performance of NGOs with beta coefficient 0.433 p value = 0.000. Similarly external environmental factors had significantly effect on performance of NGOs with beta coefficient 0.138 p value = 0.012. The study further used stepwise regression analysis and failed to reject the hypothesis that holistic marketing, organizational characteristics and external environment jointly significantly affect performance of NGOs. However the study rejected hypothesis that organizational characteristics has significant moderating effect on the relationship between holistic marketing and performance of NGOs. Similarly the study rejected the hypothesis that external environment had significant moderating effect on the relationship between holistic marketing and performance of NGOs where the interaction term had an insignificant beta value. The study concludes that holistic marketing strongly influences performance and that considering the joint effect of the variables would result in better performance of NGOs. The study recommends that managers of NGOs should embed holistic marketing in their organizations to improve performance. In addressing specific challenges on performance, the study recommends that appropriate components holistic marketing should be emphasized. Regarding the non-significant relationships, the study recommends more studies to be carried out to determine factors that moderate the relationship between holistic marketing practices and performance of NGO