Strategic Management in Non-Profit Organizations: Literature Review

This report presents a systematic literature review on strategic management in Non-Governmental Organizations (NGOs). It explores the rapid growth of NGOs and the increasing need for strategic management to effectively manage organizational activities. The report examines the background, objectives, methodology, and key findings from the literature, focusing on the relationship of NGOs with donors and governments, coordination efforts, and accountability measures. It highlights the importance of strategic management in addressing challenges such as funding limitations, lack of donor support, and ensuring long-term sustainability. The review analyzes articles from 2013 to date, emphasizing the crucial role of strategic planning in NGOs' operations, especially in times of emergencies and international relief operations. The report concludes by discussing the importance of accountability and the need for NGOs to be responsive to the communities they serve.

Running head: STRATEGIC MANAGEMENT IN NON- PROFIT ORGANIZATIONS
Strategic management in Non- profit organizations
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1STRATEGIC MANAGEMENT IN NON- PROFIT ORGANIZATIONS
Abstract:
The report comprises of a systematic literature review on the topic ‘strategic management in
Non- governmental organizations’. The systematic review has emphasized upon articles related
to strategic management in non- governmental organizations and the issues involved in them.
The report emphasizes upon the reasons behind the rapid growth of Non- governmental
organizations and the rising need of strategic management for the proper management of the
organizational activities. The report comprises of the background, objectives, review questions,
methodology and in depth literature review.

2STRATEGIC MANAGEMENT IN NON- PROFIT ORGANIZATIONS
Table of Contents
Background:.....................................................................................................................................3
Methodology....................................................................................................................................3
Objective:.........................................................................................................................................4
Review Question:.............................................................................................................................5
Strategic management in Non- governmental organizations...........................................................5
Relationship of Non- governmental organizations with their donors:.............................................6
Relationship of Non- governmental organizations with the Governments.....................................7
Non- governmental organizations coordination:.............................................................................8
Non- governmental organizations accountability............................................................................9
Conclusion.....................................................................................................................................10
References:....................................................................................................................................11

3STRATEGIC MANAGEMENT IN NON- PROFIT ORGANIZATIONS
Background:
The previous decades have witnessed an exemplary growth in the number of international
Non- Governmental Organizations (NGOs), which have also grown in terms of size and reach.
NGOs have been a success in most of the developing countries. These organizations have been
highly dependent upon voluntary human and financial resources and have aided in the
development of the nations by utilizing millions for the welfare of the community. However, the
increase in the size and functions of these organizations has increased the complexities, which
demand a proper systematic management. This has given rise to the need of strategic
management in NGOs in order to manage the finance and the stakeholders associated with the
organizations. Developing strategies for the purpose of positioning the NGOs have has become a
complicated task and have threatened the growth and survival of these organizations (Brown,
2014).
In order to enhance the knowledge of the important trends in the literature and to find out
the gaps in the literature, this report shall offer a systematic literature review on strategic
management in NGOs. The following sections shall include the objectives, research questions,
and major findings of literature review, key themes and the proposal of a future research agenda.
Methodology:
The major focus of the literature review is Non- Governmental Organizations that help
vulnerable individuals by providing them with human and financial services, which are mainly
managed by volunteers. Limitation of space has forced the exclusion of religious organizations,
professional organizations, intergovernmental organizations, community- based

4STRATEGIC MANAGEMENT IN NON- PROFIT ORGANIZATIONS
organizations and treaty based international organizations. Additionally, the researcher has
excluded environmental NGOs, governance NGOs, human rights NGOs and peace NGOs.
The research has emphasized upon articles related to strategic management in non-
governmental organizations and the issues involved in them. The articles have been selected
from the year 2013 till date using Google Scholar. The literature search resulted in more than
100 articles on strategic management in non- governmental organizations out of which 20
articles have been chosen for the research purpose. 95% of the articles have mentioned the
importance and need of strategic management in NGOs whereas; only 5% of the articles have
criticized the need of strategic management in NGOs. The following are a few important aspects
on which the research has been based:
 Relationship of Non- governmental organizations with their donors
 Relationship of the Non- governmental organizations with the Governments
 Non- governmental organizations coordination
 Non- governmental organizations accountability
 Strategic impact of Non- governmental organizations
Objective:
The major objective of the systematic literature review is to synthesize the information
available regarding the issues and importance of strategic management in Non- governmental
organizations. The report emphasizes upon the reasons behind the rapid growth of Non-
governmental organizations and the rising need of strategic management for the proper
management of the organizational activities.

5STRATEGIC MANAGEMENT IN NON- PROFIT ORGANIZATIONS
Review Question:
The systematic literature review is conducted in order to find an answer to the following
questions:
 What are the issues related to strategic management faced by Non- governmental
organizations?
 Why is the implication of strategic management important in Non- governmental
organizations?
 What is the relationship between organizational performance and strategic management?
Strategic management in Non- governmental organizations
According to Worth (2013), strategic management refers to the development and
implementation of the objectives and goals and the steps taken by the top management of an
organization on behalf of the owners while considering the available resources and the internal
and external environments. Strategic management provides a proper direction to an organization
in accordance with the organizational objectives. The organizational managers are often involved
in developing models that shall assist in the strategic decision making. Strategic planning often
involves environmental analysis, scenario planning, measuring and controlling implementation
and final evaluation.
Galaskiewicz (2016) stated that there have been several changes in the working of NGOs
in the past few years, which give rise to the importance of strategic management in Non-
governmental organizations. The changes in the international politics, new technologies,
industrial development and globalization, scarcity of natural resources, changes in the climate
and the social and cultural changes have been the most important factors that have given rise to

6STRATEGIC MANAGEMENT IN NON- PROFIT ORGANIZATIONS
the importance of strategic management in Non- governmental organizations. The third sector
comprises of non government and not- for- profit organizations. The NGOs face several issues in
the form of lack of funds, lack of support from the donors, inadequate corporate support, lack of
professionalism in the management of NGOs and long term sustainability. Strategic management
provides solution to all the issues faced by the NGOs. In order to scale up the operations of
NGOs, it is necessary to implement strategic management framework within the organizations.
Relationship of Non- governmental organizations with their donors:
The literature mainly emphasizes upon the relationship of the Non- governmental
organizations with the donors, who provide funds to the Non- governmental organizations.
Several researchers have argued that there has always been an unequal relationship between the
donors and the Non- governmental organizations. According to Renz (2016), non- governmental
organizations and donors are interdependent on each other. The NGOs require financial capital
while the donors are required to be recognized as effective in the distribution of resources. This
is possible only when they ensure that they favor successful organizations. The Non-
governmental organizations have faced several issues in the past in terms of international politics
however; the NGOs have established their relationships with the international global institutions
such as World Trade Organization and the World Bank. The World Trade Organization has
motivated the NGOs to take active participation in its policymaking process and in the process of
settling disputes with the prime motive of protecting the under developed and developing
countries. On the contrary, according to Bryce (2017), the power of the NGOs have been limited
while influencing World Trade Organization. However, in the past few years, the influencing
power of the NGOs has grown and they have greater impacts on the governments and the
international institutions.

7STRATEGIC MANAGEMENT IN NON- PROFIT ORGANIZATIONS
On the other hand, according to Butler & Wilson (2015), despite proliferation, the Non-
governmental organizations have limited powers to impact the economic policies of World Bank.
However later on, the officials at World Bank had encouraged the government borrowers by
accepting Non- governmental organizations as their development partners. The literature
mentions the role played by the donors in the growth and development of NGOs.
According to Hill, Jones & Schilling (2014), the donors provide the NGOs with the basic
finance required to survive. Since the NGOs are not involved in any profit- making business,
therefore, they are completely dependent upon donors and volunteers. The poverty of the under-
developed and developing countries, along with the frustrations of the citizens with the
governments led to the growth of NGOs. The NGOs have been involved in several activities
such as safeguarding the environment, society and human rights. They play an important role in
the development and improvement of the societies and the communities. All these factors led to
the expansion and growth of the Non- governmental organizations.
Relationship of Non- governmental organizations with the Governments:
According to Felício, Gonçalves & da Conceição Gonçalves (2013), with the rapid
growth and development of the Non- governmental organizations across the globe, the NGOs
have been involved in large- scale activities due to which their relationships with the
governments have become an important aspect. The NGOs often have to deal with the political
pressure in some countries with authoritarian rule. The NGOs often challenge the policies of the
Governments for the welfare of the society especially the poor sections of the society in order to
safeguard their rights. The NGOs usually emphasize upon human rights, equality and
environmental issues.

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On the contrary, according to Maier, Meyer & Steinbereithner (2016), the NGOs have
been successful in establishing collaborative relationships with the governments in several
nations. West (2014) mentioned that the NGOs face immense international pressure in the
Middle East for political reform. The Non- governmental organizations have adapted different
types of strategies while dealing with the governments of different countries. The major
strategies applied by the NGOs involve cooptation, complimentary, cooperation, and
confrontation. The NGOs can influence the governments in a better manner by becoming better
coordinated and representative. Berman (2015) mentioned the ways in which NGOs can
establish sound partnerships with the governments and simultaneously ensure their core values.
The literature mentions the issues faced by the Non- governmental organizations due to
the government control and restrictions. The government imposes several restrictions over the
activities of the NGOs in order to maintain their power and position. However, these restrictions
can be reduced or eradicated by establishing partnerships between the Non- governmental
organizations and the governments.
Non- governmental organizations coordination:
According to Akingbola (2013), there has been limited research conducted on NGO
coordination however; appropriate emphasis has been laid upon the coordination of the activities
and operations. The need for NGO coordination has increased especially in cases of international
relief operations. NGO coordination is extremely useful in times of emergencies. The help and
assistance of the NGOs during the time of emergencies is very useful. However, there are several
coordination issues among the NGOs and also between the NGOs and the governments, which
are witnessed during times of emergencies.

9STRATEGIC MANAGEMENT IN NON- PROFIT ORGANIZATIONS
On the other hand, Almog-Bar & Schmid (2014) stated that strategic management is
essential for enhancing the NGO coordination. Proper communication and integration are the key
elements of NGO coordination. The NGOs are required to scrutinize their effectiveness at
regular intervals. It is necessary to emphasize upon acquiring reliable staff with specialized
knowledge. The human resources in NGOs are the most important assets who are always ready
to assist.
Non- governmental organizations accountability
The growing power of the Non- governmental organizations often challenge the practices
of political forces that comprises of public criticism, operational controls, questioning the
legitimacy of the Non- governmental organizations and questions on the accountability of the
Non- governmental organizations. Malatesta & Smith (2014) has mentioned several techniques
for improving the accountability of the Non- governmental organizations. The several
shortcomings in terms of accountability of NGOs involve providing greater priority to the donors
and lesser priority to the beneficiaries, emphasizing more upon control than collaboration,
unrealistic goals and falling prey to huge costs.
According to Wheelen & Hunger (2017), legitimacy of of Non- governmental
organizations is dependent upon their effectiveness in developing strategies for the development
of a nation or state. Therefore, international NGOs must be accountable to the communities in
the state or nation where they implement their strategies and programs. If the Non- governmental
organizations aim at achieving their goals and mission, they need to be more accountable for
their actions of bringing reforms.

10STRATEGIC MANAGEMENT IN NON- PROFIT ORGANIZATIONS
On the other hand, Peppers & Rogers (2016) mentioned that the need for NGO
accountability has been observed in all directions with the motive of improving the operations
and activities of the NGOs. The comprehensive approaches to promote the accountability of
NGOs have not yet emerged. However, the NGO accountability is required to empower them to
deal with political attacks, enhance their performance, satisfy the stakeholders and provide
benchmarks that ensure achievement of the objectives and goals.
Conclusion
The increase in the complexities of the external environment of the Non- governmental
organizations has increased the need of strategic management within the organizations. The
NGOs have been involved in several activities such as safeguarding the environment, society and
human rights. They play an important role in the development and improvement of the societies
and the communities. The changes in the international politics, new technologies, industrial
development and globalization, scarcity of natural resources, changes in the climate and the
social and cultural changes have been the most important factors that have given rise to the
importance of strategic management in Non- governmental organizations. The NGO managers
are in need of better analytical tools for identifying and understanding the complexities. The
strategic management tools help in managing the relationship of the NGOs with the donors and
governments along with enhancing the accountability and coordination. Implementation of
strategic management tools helps the NGOs to improve their overall performance. However,
there is still lack of sufficient research and literature on the implementation of strategic
management tools for improving the performance of the Non- governmental organizations.

11STRATEGIC MANAGEMENT IN NON- PROFIT ORGANIZATIONS
References:
Akingbola, K. (2013). A model of strategic nonprofit human resource management. Voluntas:
International Journal of Voluntary and Nonprofit Organizations, 24(1), 214-240.
Almog-Bar, M., & Schmid, H. (2014). Advocacy activities of nonprofit human service
organizations: A critical review. Nonprofit and Voluntary Sector Quarterly, 43(1), 11-35.
Berman, E. (2015). Performance and productivity in public and nonprofit organizations.
Routledge.
Brown, W. A. (2014). Strategic management in nonprofit organizations. Jones & Bartlett
Publishers.
Bryce, H. J. (2017). Financial and strategic management for nonprofit organizations. Walter de
Gruyter GmbH & Co KG.
Butler, R., & Wilson, D. C. (2015). Managing voluntary and non-profit organizations: Strategy
and structure. Routledge.
Felício, J. A., Gonçalves, H. M., & da Conceição Gonçalves, V. (2013). Social value and
organizational performance in non-profit social organizations: Social entrepreneurship,
leadership, and socioeconomic context effects. Journal of Business Research, 66(10),
2139-2146.
Galaskiewicz, J. (2016). Social organization of an urban grants economy: A study of business
philanthropy and nonprofit organizations. Elsevier.