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African Accounting and Finance Journal Vol. 5 No.1 2023
© African accounting and Finance Association
Networking, resource mobilisation and NGO role-
performance: Considering more than simply the
main effects.
Rhona Ajuna
Department of Finance and administration,
Uganda National Rotaries and Gaming Regulatory Board
e-mail- ajunarhona.ra@gmail.com
Stephen Korutaro Nkundabanyanga & David Nyamuyonjo
Department of Accounting
Makerere University Business School
Abstract
Purpose – This study aims to establish the relationship between networking,
resource mobilization, and role performance of Non-governmental
Organizations (NGOs).
Design/methodology/approach – This study is cross-sectional and
correlational. The results, using a questionnaire, are obtained from a sample
of 122 NGOs in Uganda.
Findings – The study finds that both resource mobilisation and networking
are significant predictors of NGO role-performance; with resource
mobilisation the most significant predictor of NGO role performance. Human
resource mobilisation as a construct of resource mobilisation correlates better
with NGO role-performance relative to financial resource mobilisation.
Similarly, the political networking construct correlates better, relative to
business networking, with NGO role-performance and subsists in the
presence of financial resources but not in the presence of human resources.
Notably, we find a significant partial mediation of resource mobilization in the
relationship between networking and NGO Role-performance.
Research limitations/implications –Networks can help organisations to
mobilize resources. Thus, if NGOs are to improve the performance of their
roles, networking, especially political networking, and resource mobilisation
(essentially human resources) should be enhanced. To ensure generalisation,
further research may wish to focus on other sectors (like government
institutions) to establish the relationship between networking, resource
mobilisation, and those institutions' role-performance.
Originality/value – Our design allows for the consideration of more than
simply the main effects of networking and resource mobilisation by exploring
the mediating role of resource mobilisation in the link between networking
and NGO role-performance thus offering a more accurate and detailed
description of the relationships between networking, resource mobilisation
and NGO role-performance in a developing country context.
Keywords – role-performance, networking, resource mobilisation, Non-
Governmental Organisations.
Paper type – Research Paper
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1. Introduction
Across the developing world, States with limited finances fail to lead to
development for all their citizens (Banks and Hulme, 2012). Consequently,
non-governmental organisations (NGOs) increasingly get advocated for as a
means through which the gap between citizens’ needs and existing services
can be bridged. NGOs play a critical role in economic development through
the provision of highly needed services such as education, healthcare, and
employment (Ashoka, 2016). Ugandan NGOs, in response to poverty and
related suffering, provide health care, education, water, and environmental
disaster management as well as focusing on future investment targeting
raising income and improving the well-being of people through measures that
increase household income, agriculture, rural market, employment, labour
productivity, rural credit, and financial services.
In literature, the role-performance of NGOs has been defined variously:
the demonstrated ability to acquire the necessary resources for organizational
survival (Kanter,1987); effectiveness and efficiency in achieving mutually
identified social goals (Kareithi and Lund, 2012), and the execution of
proposed programs that pursue missions such as relief of hunger, natural
crisis, and environmental protection, and to raise funds to meet the financial
needs required to perform these programs (Kim and Lee, 2018). Their role-
performance is thus analysed through: performance metrics (financial and
non-financial) grouping NGOs activities into five categories following the
theory of change: input, activity, output, results, and impact (Epstein and
McFarlan, 2011); outputs and outcomes (Hyndman and McMahon, 2010;
Morris and Ogden, 2011; Szper and Prakash, 2011); outcomes (Barman and
MacIndoe, 2012); and inputs, outputs, outcomes, and impact (Benjamin and
Misra,2006). So, in general, third-sector performance measurement focuses
on outputs, outcomes, and impact. It can be informative to examine how
networking and resource mobilization influence the role performance of NGOs
in terms of these measures.
The magnitude and complexity of socioeconomic problems facing
societies exceed the capabilities of single organisations. Networking, whereby
NGOs aim to work together to share and combine resources to provide
services (Hodges and Howieson, 2017) is according to Austin and Seitanidi
(2012) perceived essential. In Uganda, the National NGO Policy (2015) sets
out a framework to strengthen the relationship between the NGO sector and
the Government, and enhance capacities and effectiveness in the areas of
service delivery, advocacy, and community empowerment. Research in other
sectors, find resource mobilization (Densford, et al., 2018; Batti, 2014; Levie
and Lerner, 2009) also impacts performance. Competition for donor resources
is fierce and, in many cases, for an organization to secure resources depends
on how well it can compete with other organizations to raise funds; and on
how good it is at exploring other ways to source resources (Batti, 2014;
Densford, et al., 2018). NGOs generally aim to raise funds linked to projects,
for activities related to their institutional mission, by submitting project
proposals to donors; and they also gather resources not related to specific
projects, which are expenses of the organization, through commercial
processes (sales of products and services), auctions, fundraising dinners,
crowdfunding, etc (Lacruz and Cunha,2018). There are Ugandan NGOs that
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have identified strategies for mobilizing resources in furtherance of their
mission. According to United Nations Development Programme (2016):
“In the next five years (2016- 2020), UNDP will be contributing principally to the
achievement of good governance in Uganda. This is because achieving good governance
creates enabling conditions for achieving high-quality human capital, which in turn drives
(the) attainment of sustainable, inclusive economic development. UNDP is leveraging its
comparative advantages by focusing on governance and sustainable, inclusive economic
development while complementing the efforts of other United Nations country team
members on human capital development. This will be achieved through two key
programme areas; the Inclusive, effective governance programme & the Sustainable,
inclusive economic development programme” (p.4)
A closer look at this quote illuminates some nature of networking essential
for resource mobilization in terms of e.g. human and financial resources, also
essential for realizing the focal NGO mission. Empirical tests of this imperative
have, however, remained less evident in the literature.
This study aims to establish the relationship between networking,
resource mobilization, and role-performance of NGOs in Uganda. Networking
is potentially important to Uganda’s NGOs because they undergo stringent
rules and regulations both from the donors and the government. Local NGOs
express difficulty in finding sufficient, appropriate, and continuous funding
for their work. According to the CSO sustainability index (2017), the NGOs
performance in the area of service provision in Uganda is on the decline as
accessing donors is as challenging as dealing with their funding conditions.
Also, since many local NGOs are dispersed, networking can be a cost-effective
means to share information and spread knowledge about grassroots needs,
solutions, and best practices. But, the link between networking, resource
mobilization, and NGOs performance in developing countries like Uganda is
still an empirical question. We draw on resource-based theory and network
theory to examine the relationship between networking, resource mobilisation
and NGO role-performance. Using a questionnaire on a sample of 122 NGOs
we find that both resource mobilisation and networking are significant
predictors of NGO role-performance. Human resource mobilisation as a
construct of resource mobilisation correlates better with NGO role-
performance relative to financial resource mobilisation. At the same time, the
political networking construct correlates better, relative to business
networking, with NGO role-performance and subsists in the presence of
financial resources but not in the presence of human resources. In the end,
resource mobilisation in terms of human and financial resources is the most
significant direct predictor of NGO role performance. Lastly, we find a
significant partial mediation of resource mobilization in the relationship
between networking and NGO role-performance suggesting that networking
leverages resource mobilization to cause variances in NGO role-performance.
These results have important implications. First, the results point to
the suggestion that human and financial resource mobilisation are the most
significant predictors of NGO role-performance. By this result, the paper
contributes to studies characterising hybrid organisations as usually relying
on varied resource mobilisation sources and strategies. The call for the urgent
understanding of hybrid organisations’ particularities of their performance
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(Grossi et al.,2017) has been answered in this paper as it probably offers the
first step in this understanding by showing that contemporary NGOs
potentially enhance the performance of their roles through the identified
forms of resource mobilisation. Second, the study vindicates network
theorists that suggest that networking serves as a channel for opportunity
discovery and to access a wide variety of resources necessary for outcomes.
Our design has allowed for the consideration of more than simply the main
effects of networking and resource mobilisation by exploring the mediating
role of resource mobilisation in the link between networking and NGO role-
performance. As such, we now have a more accurate and detailed description
of the relationships between networking, resource mobilisation and NGO role-
performance. Fundamentally, the results of this study reveal that resource
mobilisation is affected by prior or concurrent decisions to networking which
in turn affect NGO role-performance. Thus, we now know why the
relationship between networking and NGO role-performance might exist. It
exists partially by resource mobilisation; hence, resource mobilisation
clarifies or explains the relationship between networking and NGO role-
performance. Lastly, as NGO role-performance has hitherto largely remained
inadequately explained especially in the context of third-world countries’
daunting performance improvement in NGOs, the paper shows that networks
can help organisations to mobilize resources.
The remainder of the paper continues as follows. Section 2 is a
literature review that contains the review of theories informing this study and
also the hypotheses development. The third section deals with the
methodology adapted for this study to generate the results reported in section
4. The last section is a discussion and implications.
2. Literature review
Theoretical underpinnings
Understanding NGO role performance is potentially underpinned by the
social networking theory (Granovetter, 1973; Anwar, et al., 2018) and the
resource-based view theory (Barney, 1991; Wernefelt, 1984). According to
Brass (2002), network theory is about the consequences of network variables,
such as having many ties or being centrally located. In the context of NGO
role performance, we are interested in the noun “networking” - the action or
process of interacting with others to exchange information and develop
professional or social contacts (the skills of networking, bargaining, and
negotiation). Networking of an organization with other organizations not only
helps to access external resources but also helps to create and exploit social
capital which itself is viewed as a source of competitive advantage (Barney,
1991). Among the networking forms identified by Anwar et al. (2018) are
business networking (building connections with other business partners and
industries) and political networking (building ties with government and
political bodies). Political and business networking may be considered a
unique (hybrid-bearing the internal and external characteristics) set of
resources potentially important for a firm’s realization of its objectives.
The resource-based view theory states that a firm uses its internal and
external capabilities, including tangible and intangible resources, to develop
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and modify its strategies to get a competitive advantage and superior
performance over industry rivals and major competitors (Barney, 1991).
Resources are defined as stocks of knowledge, physical assets, human capital,
and other tangible and intangible factors owned or controlled (Teece, et al.,
1997). We argue that for NGOs to improve their role-performance, they ought
to ensure the cooperation and coordination of teams of resources. Grant
(1991) explains that the firm’s capability is the capacity for a team of
resources to perform some task or activity and concludes that the firm’s
resources are the source of a firm’s capabilities which are the main source of
its competitive advantage and hence performance. This resource base should
be enriched by developing different forms of networking to enhance their
performance as well as human and financial resources. Resources both
financial and non-financial are usually mobilized either externally or
internally to support organization activities (Batti, 2014). For instance, the
external changes in the market compel firms to strengthen their internal
gestures, institutional complexity, and relationship with market-driven forces
to succeed (Ding et al., 2016). Thus, networks in such circumstances are
directly linked to unique resources which in turn can be converted into
superior role performance.
The exact mechanism through which political and business networks
on one hand and human and financial resources mobilization on the other
influence the performance of NGOs is to date less known. Essentially it is less
known whether networking (in terms of political and business) and resource
mobilization (both human and financial) are equally important for the role
performance of NGOs. It is also less known how these variables transmit
variations in NGO role performance. Indeed, the question of whether for
example networking leads to the required other resources (such as human
and financial resources) other than the networking itself is an empirical
question, this study seeks to answer.
Resource Mobilization and NGO role performance
The concept of resource mobilization concerns the capabilities and
opportunities to access, use, control, and maintain resources in a given
context (Boström, 2017). It highlights the constraints, strategies, and
creativity needed to access different types of resources. Resource mobilization
is a process whereby resources both financial and non-financial resources are
mobilized either externally or internally to support organization activities
(Batti, 2014). The efficacy of resource mobilisation on performance out comes
has been documented in literature (Fonseka et al., 2014; Naidu and Chand,
2012; Casanueva et al.,2014; Sedmak et al., 2011). While the focus of extant
literature has been on financial resources mobilisation, there is a noticeable
neglect of internal resources mobilisation. Yet the resource-based view theory
(Barney, 1991) suggests that firms using both resources develop internal and
external capabilities to develop and modify strategies aimed at superior
performance. An NGO may only be as good as the summation of the people
who work and support it with its effort. For instance, NGOs need to have
‘smart lobbyists to realise the fruits of lobbying. Studies such as those of
Kaawaase et al. (2020) indicate that human capital (resource) is significantly
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associated with the both financial and non-financial performance of small and
medium audit practices. Extending this line of thinking to the NGO sector
suggests that human resource(s) mobilisation in NGOs potentially affects
NGO role performance. Proponents of the resource-based view generally
assume that there is a strong link between having strategic resources and
firm performance (Coff, 1999). In this paper, we make a case for mobilizing
both financial and human resources for better NGO role performance. Hence,
we hypothesize that:
H1: Resource mobilisation is positively related to NGO role performance
in Uganda.
Networking and NGO role performance
Networking is a social communication process, which encourages the
sharing of knowledge among communities (Swan et al., 1999) or the ability or
skill of an individual to develop friendship and build tight constructive unions
and coalitions (Ferris et al., 2005), or people’s capacity to build and draw on
interpersonal relations in a work setting (Nesheim, et al., 2017). Jobs, work
roles, and tasks are socially embedded, and employees’ ability to
communicate and build interpersonal relationships is becoming increasingly
important in the knowledge economy (Grant and Parker, 2009). Interpersonal
skills refer to skills related to social sensitivity, relationship building, working
with others, listening, and communication (Lievens and Sackett, 2012).
According to Su et al. (2015), there are two types of networking: 1) Business
networking which is constructing a relationship with other businesses firms,
industries, competitors, and suppliers to gather valuable information and
unique resources, etc. and 2) Political networking which is building
connections with government and political bodies to access scarce resources
controlled by the government. Several researchers agree that networking is
essential for organisational out comes (Bing et al., 2011; Pfeffer, 198;
Mintzberg, 1983; Holmén, 2002; Nesheim et al., 2017; Wei et al., 2012; Ferris
et al., 2005; Munyon et al., 2013; Lin, et al., 2016). In line with this literature,
we suggest that the ability to build and use networks is related to role
performance. Business networking particularly with suppliers and social
entities minimizes the need for borrowing from financial institutions (Le and
Nguyen, 2009). According to Wu and Chen (2012) business ties have a
significant impact on competitive advantage. Thus, the following hypothesis
will be stated;
H2: Networking is positively related to NGO role-performance in Uganda
Networking ability can enhance performance through several
mechanisms, such as acquiring and having trustworthy sources of
information, identifying and communicating with potential customers,
creating solutions to problems that have a high degree of uniqueness and
require input from several contributors, as well as influencing decision
outcomes at both the operative and strategic level. This line of thinking
suggests that networking can influence resource mobilization and at the same
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time the resource mobilization potential is likely to enable NGOs to persist in
their role-performance. Extensive research has shown that public perception
of a non-profit’s efficiency in raising and then using funds for the ultimate
goal heavily influences attitude and likelihood to donate (Bennett and Savani,
2003). A variety of resources must be effectively mobilized, accumulated,
controlled, and organized for any social movement actor striving for social
change. Resource mobilization takes place in the context of political,
economic, and cultural opportunity structures. The potential endowment of
resources is the mobilization of the resources of the firm’s partners. This
mobilization takes place through the formal and informal relations that the
focal firm maintains with its partners through inter-organizational and
interpersonal networks (Bhagavatula et al., 2010). Mobilization allows the
focal firm to use resources and exploit partner resources as and when it needs
them. Therefore,
H3: Resource mobilization significantly mediates the link between
Networking and NGO role-performance in Uganda.
3.0 Methodology
Design and sample
This study is cross-sectional and correlational. The population is 223
registered NGOs by the Uganda National NGO forum (2019) and sample size
is 148 NGOs (Krejcie and Morgan1970) and the members are selected
randomly using the rotary method and 122 NGOs (about 82%) respond.
Responses are enlisted from either a top manager, head of department, or
supervisor in the NGO. Several demographic and NGO characteristics are
reported in Table 3.1 and may be used to understand the results reported in
this paper. Responses are from 66 males and 56 females including 50
managers, 46 department heads and 26 supervisors. The majority of the
respondents (34.4%) are aged between 30-39 years. Slightly over 82% of
respondents have Bachelors's or Master's degrees. In terms of length of service
in the particular NGO, the majority (35.2%) had worked between 4 to 6 years,
Most of the NGOs operating in Uganda are local (about 63.1%). This implies
that the Ugandan NGOs sector is majorly dominated by locally established
and given Uganda’s resource capacity it could be paramount for such NGOs
to be good at resource mobilization e.g. solicitation of funding from foreign
donors to support the locally initiated NGOs. The results in Table 3.1 show
that 50.8% of the NGOs had more than 100 employees, and 49.2% have less
than 100 employees – a fair distribution between large and small NGOs. Most
NGOs (68%) have a national character. Most of the NGOs have been operating
for more than 10 years (about 70.3%).
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Table 3.1 Respondent and NGO characteristics
Respondent characteristics
NGO characteristics
Variable
f
%
Variable
f
%
Gender
Ownership
Male
66
54.1
Local
77
63.1
Female
56
45.9
Foreign
44
36.1
Total
122
100.
0
Others
(specify)
1
.8
Highest level of
education
Total
122
100.0
Diploma
9
7.4
Number of employees
Bachelors
48
39.3
Up to 100
60
49.2
Masters
53
43.4
More than
100
62
50.8
PhD
6
4.9
Total
122
100.0
Others, specify
6
5.9
Our NGO cover the whole country
(Yes/No?)
Total
122
100.
0
Yes
83
68.0
Age (years)
No
39
32.0
Below 30
34
27.9
Total
122
100.0
30-39
42
34.4
This organization has been operating
for?
40-49
34
27.9
less than 1
4
3.3
50 and above
12
9.8
1-3
5
4.1
Total
122
100.
0
4-6
8
6.6
Number of years spent in the
organisation
7-9
16
13.1
less than 1
12
9.8
more than 10
89
70.3
1-3
34
27.9
Total
122
100.0
4-6
43
35.2
7-9
14
11.5
more than 10
19
15.6
Total
122
100.
0
Respondent position
Manager
50
41.0
Head of Department
46
37.7
Supervisor
26
21.3
Total
122
100.
0
Source: Primary data
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Questionnaire and measurement of variables
NGO role performance is assessed through perceived NGO role
performance in terms of efficiency, impact, and outcomes consistent with
(Misra, 2006; Morley, 2001). The manifest variables are anchored on a six-
point Likert scale (1=Strongly disagree, 6 = strongly agree). Networking is
assessed through perceived NGO networking in terms of business (Su et al.,
2015) and political (Lin, et al., 2016) networking. We operationally define
networking as the ability or skill of an NGO (members) to develop friendships
and build tight constructive unions and coalitions consistent with Ferris et
al. (2005). The observed variables are anchored on a 6-point Likert scale. The
resource mobilization is also assessed through perceived NGO resource
mobilization efforts in terms of financial and political networking (Batti, 2014)
and operationally define resource mobilisation as a process whereby
resources both financial and human resources are mobilised either externally
or internally to support the NGO activities (Batti, 2014). The indicators for
both financial and human resources are anchored on a 6-point Likert scale.
We use factor analysis based on (principal components) and Cronbach’s α to
examine the validity and reliability of the scales as measures of Networking,
Resource mobilisation, and NGO role-performance. Cronbach’s α coefficients
for Networking, Resource mobilisation and NGO role-performance are,
respectively, .960, .947, and .982. To establish convergent validity, the
principle components were extracted by running principle component
analysis using varimax rotation method, and factor loadings below 0.5
coefficients are suppressed to avoid extracting factors with weak loadings.
Before performing the principal component analysis for our scales, we assess
the suitability of the data for factor analysis based on sample size adequacy,
the Kaise-Meyer-Olkin (KMO), and Bartlett tests. The results show the KMO
value of 0.926 and Bartlett’s test of sphericity reaching statistical significance
(p<0.01) for NGO role-performance. The results show the KMO value of 0.880
and Bartlett’s test of sphericity reaching statistical significance (p<0.01) for
Resource mobilisation. In the same vein, the results show the KMO value of
0.903 and Bartlett’s test of sphericity reaching statistical significance (p<0.01)
for Networking. The rule of thumb is that the KMO value should be above 0.7
and Bartlett’s test should be significant (p < .05) (Field 2009). Thus, the
results support the factorability of the correlation matrix because the
correlation matrix is significantly different from the identity matrix in which
the variables would not correlate with each other. The results of factor
analysis are presented in Tables 3.2, 3.3, and 3.4 for NGO role-performance,
Resource mobilisation, and Networking, respectively. The determinant for all
three variables is greater than 0.01 implying that there is no multicollinearity
or singularity between variables.
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Table 3.2 Rotated Component Matrix for NGO role-performance
Output
Efficiency
Impact
Generally, customers of our projects are satisfied with the
outcome
.827
Our projects contribute to achieving the vision, mission, and
objectives of the organisation
.793
There are often clearly identified intangible benefits from
projects we carry out
.784
The project has a good chance of being extended with additional
funding
.738
Our projects frequently contribute to long-term development
objectives
.717
Generally, we achieve the scope and objectives of our project
.710
Our projects successfully produce the intended influences as
well as favourable unintended effects
.709
Generally, our stakeholders (donors, implementing NGO, and
beneficiaries) are satisfied with the project outcomes
.707
The goods and services produced by the project conform to those
described in the project documents
.688
We typically complete projects within the planned timescale
.642
We are usually good at delivering projects within budget
.819
We frequently complete our projects within the planned budget
.797
Our organisation has distinctive competence in areas such as
cost-effectiveness, poverty reach, popular participation,
flexibility, and innovation
.796
NGOs can provide some services more cost-effectively than
governments or commercial interests
.794
Project team members are usually happy working on projects
.783
Our key stakeholders are usually happy with the way our
projects are managed
.749
Our projects usually result in tangible benefits for the
organisation
.649
The projects have attained sustainability in the community
.687
Eigen values
7.002
6.435
2.105
Percentage of variance
38.9
35.749
11.696
Cumulative percentage of variance
38.9
74.648
86.343
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
.926
Bartlett's Test of Sphericity
Approx. Chi-
Square
3650.630
df
153
Sig.
0.000
a. Rotation converged in 6 iterations.
Extraction Method: Principal Component Analysis.
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Table 3.3: Rotated Component matrix for Resource mobilisation.
Human
resourc
es
Financi
al
resourc
es
This NGO:
generally, meets agreed donor financial requirements
.867
recruits and engages volunteers sufficiently
.844
prepares financial reports at least monthly
.839
utilizes professional services such as accountants, IT managers, or
lawyers
.838
has adequate human resources practices for staff, including contracts,
job descriptions, payroll, and personnel policies
.823
can maintain permanent, paid staff
.812
has financial policies and procedures on which it operates
.811
develops the skills/competencies of employees, including leadership skills
as part of succession planning
.807
draws upon a core of volunteer and non-monetary support from their
communities and constituencies
.781
has the capacity/skills in proposal writing and applications for funding
.664
raises funding from local sources, including individuals, governments,
businesses, and local foundations
.839
legally competes for government contracts/procurements at the local and
central levels
.815
benefits from corporate philanthropy/corporate social responsibility (CSR)
programs
.799
is legally allowed to earn income from the provision of goods and services
by charging fees and establishing social enterprises
.777
is provided with government grants (central and/or local) in an open and
transparent manner
.757
runs fundraising campaigns
.752
accepts funds from foreign donors
.625
projects increase the fundraising abilities
.613
Eigen values
7.395
5.648
Percentage of variance
41.085
31.380
cumulative variance
41.085
72.465
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
.880
Bartlett's Test of Sphericity
Approx.
Chi-
Square
2664.19
4
df
153
Sig.
0.000
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 3 iterations.
Source: Primary data
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Table: 3.4: Rotated component matrix for networking
Political
networking
Business
networking
This organisation creates a long-term relationship with its
stakeholders
.850
This organisation has created a big network through documentation
of their programmers via radio, TV
.701
This organisation has a friendly environment where it encourages
actors to participate
.933
Projects have improved the reputation of the organisation amongst
the stakeholders, government, and general public
.899
This organisation gets information through connections that is useful
for the work
.929
This organisation Works in partnership, either formally or informally,
with the private sector, government, and the media to achieve
common objectives
.922
There is awareness among the various sectors of the possibilities for
and advantages of partnerships
.894
Networks are a source of business resources that contribute to the
growth
.809
Maintaining contacts with well-connected people gives the
Organisation access to information that can solve problems
.854
Connections help organizations to confront growing challenges
without having to enlarge [their] formal structure
.863
There are direct lines of communication or other avenues for
collaborations between NGOs and policy makers at the central and
local levels
.885
Lobbying successes at the local or national level have led to the
enactment or amendment of legislation
.927
Our organisation is comfortable with the concept of lobbying
.892
Our organisation is good at using connections to make things happen
at work
.888
We spend a lot of money on building relations with the top officials in
government.
.888
We maintain good relationships with officials of the state bank and
other governmental agencies
.904
We spend much effort in cultivating personal connections with
officials of government and its agencies
.894
We devote substantial resources to maintaining good relationships
with officials of administrative agencies
.899
Eigen values
8.919
5.84
Percentage of variance
49.548
32.444
cumulative variance
49.548
81.992
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
.903
Bartlett's Test of Sphericity
Approx.
𝐶ℎ𝑖 −
𝑆𝑞𝑢𝑎𝑟𝑒
3560.366
df
153
Sig.
0.000
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 3 iterations.
Source: Primary data.
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Results in Table 3.2, show that three constructs were appropriate for
measuring role performance, given that they explained 86.3% of the total
variance. The construct output explained the most, with 38.9% of the
variance, while efficiency explained 35.7% of the variance. Impact explained
least with 11.7% of the variance. Also, from the findings, it is clear that output
construct is the most important (with eigenvalues of 7.002), followed by
efficiency (eigenvalues of 6.435) while impact is not that so important (with
eigenvalues 2.105). Table 3.3 indicates that financial resources and human
resources explain 72.5% of the variance in Resource mobilisation with human
resource mobilisation accounting for much of this variance with an eigenvalue
of 7.395. Table 3.4 reveals that business networking and political networking
are important components of networking accounting for about 82% of the
variations. Relative to business networking, political networking accounts for
much of this variance.
4. Results
Descriptive statistics for the study variables
Table 4.1 below presents the descriptive statistics for NGO role-
performance, resource mobilisation, and networking; that is, minimum,
maximum, mean, standard deviation values, skewness and Kurtosis.
According to Field (2009), when deviations are small compared to mean
values, it is evident that the data points are close to the mean, and hence
calculated mean highly represent the observed data. Since the deviations are
small compared to the mean, this means the data points closely represent the
observed data. Similarly, according to Field (2009), the values of skewness
and kurtosis should be near 0 in a normal distribution and he advises that
Skewness and Kurtosis statistics for normal data range from −3.29 and 3.29.
Garson (2012) recommends (somewhat conservatively) that Skewness and
Kurtosis statistics be within the +2 to −2 range, though for kurtosis a more
lenient +3 to −3 range can also show normality. Following these benchmarks,
the normality of the data was tenable (Table 4.1)
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Table 4.1: Descriptive Statistics.
N
Min.
Max
.
Mean
Std.
Dev.
Skewness
Kurtosis
Statisti
c
Std.
Error
Statisti
c
Std.
Error
Financial
resources
12
2
1.00
6.00
3.552
3
1.3326
8
-.191
.219
-.272
.435
Human resources
12
2
1.10
6.00
4.702
5
1.4417
9
-.936
.219
-.415
.435
Resource
mobilisation
12
2
1.15
6.00
4.127
4
1.2140
9
-1.027
.219
.224
.435
Business
networking
12
2
1.00
6.00
4.719
0
1.4720
6
-1.123
.219
.232
.435
Political
networking
12
2
1.00
6.00
4.641
6
1.5314
6
-1.104
.219
.191
.435
Networking
12
2
1.00
6.00
4.680
3
1.3013
0
-1.037
.219
.314
.435
Output
12
2
2.00
6.00
5.145
1
.98645
-.954
.219
-.050
.435
Efficiency
12
2
2.00
6.00
4.987
1
1.1450
7
-.934
.219
-.116
.435
Input
12
2
1.00
6.00
5.049
2
1.2652
5
-1.363
.219
1.410
.435
Role Performance
12
2
2.00
6.00
5.060
5
1.0056
1
-.992
.219
.049
.435
Valid N (listwise)
12
2
Source: Primary data
Correlation analysis
Table 4.2 provides for Pearson correlation coefficients among the study
variables – providing the first-order tests for the first two hypotheses. The
correlation results in Table 4.2 reveal a positive and significant relationship
between resource mobilisation and NGO role-performance (r=0. 432, p<0.01).
This provides initial support for H1 which states that Resource mobilisation is
positively related to NGO role-performance in Uganda. Furthermore, human
resources as a construct of resource mobilisation correlate better with NGO
role-performance (r=0.611, p<0.01) relative to financial resources (r=0. 126,
p> 0.05) which does not significantly correlate with NGO role-performance.
The correlation results in Table 4.2 further reveal evidence of a positive and
significant relationship between networking and NGO role-performance (r=
0.453, p<0.01). Again, this provides initial evidence in support of H2 which
states that Networking is positively related to NGO role-performance in Uganda.
Political networking construct correlates better (r=0.459, p≤0.01), relative to
business networking (r=0.324, p<0.01) with NGO role-performance. Given the
correlation coefficient between networking and resource mobilisation (r =
0.566, p<0.01), multicollinearity is not a cause for concern; the variables are
sufficiently discriminated and thus discriminant validity is assured.
Moreover, the correlations between the constructs and the global variables
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are very high (all of them above 0.8) hence there is evidence of convergent
validity.
Table 4.2: Pearson correlations between the study variables with control
variables
1
2
3
4
5
6
7
8
9
10
Number of employees (1)
1
Extent of national coverage
(2)
.077
1
No. of years in operation (3)
.146
-.119
1
Business networking (4)
.062
.265**
-.026
1
Political networking (5)
.267**
.239**
-.005
.502**
1
Networking (6)
.192*
.290**
-.017
.861**
.872**
1
Financial resources (7)
-.029
.109
.137
.244**
.193*
.251**
1
Human resources (8)
.225*
.302**
.043
.619**
.631**
.722**
.531**
1
Resource mobilisation (9)
.118
.239**
.101
.501**
.481**
.566**
.864**
.885**
1
Role Performance (10)
.275**
.264**
-.044
.324**
.459**
.453**
.126
.611**
.432**
1
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).
Regression analysis
As a further test of the first two hypotheses, we extend the analysis to
regression. We test the explanatory power of variables using hierarchical
regression analysis to determine the contribution of each predictor variable
and regression coefficients as indicators of whether or not the contribution of
each variable is significant. We indicate the overall contribution of the
variables by the variance explained (Adj.R2), which also shows the predictive
power of the variables. We first test for the efficacy of the different dimensions
of predictor variables on the NGO role-performance using hierarchical
regression consistent with the guidelines of Aiken and West (1991) and enter
variables simultaneously within each hierarchical group. This is useful for
evaluating the contributions of predictors above and beyond the previously
entered predictors, as a means of statistical control, and for examining
incremental validity. The model in Table 4.3 shows that business networking
significantly predicts variances in NGO role-performance (B = .179, p<.01). In
model III when we enter political networking, the model predicts about 24
percent of the variances in NGO role-performance with political networking (B
=.211, p<.01). The introduction of financial resources in model IV does not
cause significant changes in adj. R2. This appears surprising. However, when
we introduce human resources in model V, the model improves and predicts
42.3 percent of the variances in NGO role-performance. At this point financial
resources that were hitherto not significant in model IV is now significant in
model IV. In table 4.4, we enter the global variables while also controlling for
the effect of NGO size by employees and geographical coverage, and also NGO
age. Except for size by the number of employees, Model III in Table 4.4 is not
sensitive to the other control variables. To be sure of the normal theory of
estimation, we carry out bootstrap and the results reported in Table 4.5 show
that both networking and resource mobilisation explain 23.8 percent of the
variance in NGO role-performance. So, in sum, using the results in Table 4.5
because they are robust, we find that both resource mobilisation (B= .214,
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p<.01) and networking (B = .237, p<.01) are significant predictors of NGO role-
performance in Uganda and this provides further support Hypotheses H1 and
H2.
Table 4.3: Hierarchical regression of the variable dimensions on NGO role-
performance
Model I
Model II
Model III
Model IV
Model V
(Constant)
3.831**
3.213**
3.005**
2.962**
3.260**
Size by Employees
.530*
.507*
.358*
.365*
.186
Geographical
Coverage
.510**
.363
.297
.292
.158
Age of NGO in
Uganda
-.054
-.054
-.049
-.055
-.050
Business
Networking
.179**
.078
.073
-.092
Political networking
.211**
.208**
.039
Financial resources
.028
-.187**
Human resources
.521**
Std. Error of the
Estimate
.94549
.91380
.87641
.87946
.76382
Model F
6.292**
7.384**
8.661**
7.200**
13.676**
R
.371
.449
.521
.523
.676
R2
.138
.202
.272
.273
.456
Adj. R2
.116
.174
.240
.235
.423
ΔF
6.292**
9.327**
11.195**
.197
38.455**
ΔR2
.138
.064
.070
.001
183
Df1
3
1
1
1
1
Df2
118
117
116
115
114
Durbin Watson
1.665
*. P< 0.05 level (2-tailed). **. P< 0.01 level (2-tailed).
Table 4.4: Hierarchical regression of study variables on NGO role-performance
Model I
Model II
Model III
(Constant)
3.831**
2.947**
2.776**
Size by Employees
.530**
.400*
.406*
Geographical
Coverage
.510**
.288
.235
Age of NGO in
Uganda
-.054
-.051
-.082
Net working
.290**
.182**
Resource mobilisation
.213**
Std. Error of the
Estimate
.94549
.87824
.85560
Model F
6.292**
10.411**
10.230**
R
.371
.512
.553
R2
.138
.262
.306
Adj. R2
.116
.237
.276
ΔF
6.292**
19.765**
7.273**
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ΔR2
.138
.125
.044
Df1
3
1
1
Df2
118
117
116
Durbin Watson
1.557
*. P< 0.05 level (2-tailed).
**. P< 0.01 level (2-tailed).
Table 4.5: Regression analysis (bootstrap)
Model I
Bias
BCa 95%
Confidence
Interval
Model
II
Bias
BCa 95%
Confidence
Interval
Lower
Upper
Lower
Upper
(Constant)
3.421**
.023
2.678
4.185
3.067**
.014
2.334
3.839
Networking
.350**
-
.005
.203
.495
.237**
.001
.075
.444
Resource
Mobilization
.214**
-
.004
-.014
.406
Std. Error of
the
Estimate
.90015
.87777
Model F
31.014
19.906
R
.453
.501
R2
.205
.251
Adj. R2
.199
.238
ΔF
31.014**
7.197**
ΔR2
.205
.045
Df1
1
1
Df2
120
119
Durbin
Watson
1.594
Bootstrap model summary
BCa 95%
Confidence
Interval
Model
Durbin-
Watson
Bias
Std.
Error
2
1.594
-.506
.163
.773
1.438
*. P< 0.05 level (2-tailed).
**. P< 0.01 level (2-tailed).
a. Dependent Variable: Role Performance
b. Unless otherwise noted, bootstrap results are based on 1000
bootstrap samples
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The mediating effect of resource mobilization in the relationship
between Networking and NGO role-performance.
The position of this study has been, that resource mobilization mediates
the link between networking and NGO Role performance, which set the stage
for the examination of whether there is a relationship to mediate. As
Networking significantly predicts NGO Role-performance (B = .453, p<.01), the
stage for testing for mediation is set. That is testing H3 – a hypothesis
suggesting that the relationship between networking and NGO Role-
performance can be explained by their relationship to the resource
mobilisation of NGO firms in Uganda. The expectation is that the relationship
between networking and NGO role-performance will probably be different
when resource mobilization is also included in the model. This study uses the
Sobel test with Jose’s MedGraph to test for the significance of mediation.
Sobel test results indicate that there is a significant mediation of resource
mobilization in the relationship between networking and NGO role-
performance, substantiating H3. The indirect effect of networking on NGO
role-performance through resource mobilization, b = 0.258 is significant and
moderate, R2 = .147, 95% BCa CI [.02515, .20084]. Resource mobilization
partially mediates the link between networking and NGO role-performance of
firms in the NGO sector in Uganda (Z=2.521152, p < 0.01) (Figure 4.1). This
means that networking leverages resource nobilization to cause variances in
NGO role-performance.
Figure 4.1: MedGraph - PC: A programme to graphically depict mediation among
Networking, Resource mobilization, and NGO Role performance
Note: The numerical values in parentheses are beta weights taken from the second
regression and the other values are zero-order correlations.
5. Discussion and implications
Using hierarchical regression, we find that among the two dimensions
of networking, it is political networking that subsists in the presence of
financial resources but not in the presence of human resources. This points
to a unique relationship and mix of these two variables in influencing NGO
role-performance (not within the scope of this study). Well, these results point
Networking
Resource
Mobilization
NGO Role-performance
0.453*** [c]
(0.237**) [c']
0.566*** [a]
0.453***
(0.258**) [b]
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to the suggestion that human and financial resource mobilisation are the
most significant predictors of NGO role-performance. According to the
results, an NGO that is legally allowed to earn income from the provision of
goods and services by charging fees and also acting as a social enterprise
accepts funds from foreign donors, runs fundraising campaigns, and can
compete for government contracts/procurements at the local and central
levels is likely to achieve its targets. The results appear to hold for hybrid
organisations according to which, Van Helden and Reichard, (2016)
characterise them as usually relying essentially on sales revenues, often
based on regulated tariffs, but sometimes receiving additional funding from
government and in the case of welfare associations and charities, donations
and membership fees. The current results in the NGO sector concur with the
current wave of hybrid organisations with commentators predicting that
“hybrids at all levels will become much more prevalent in the future” (Grossi,
et al., 2017, p.383). And, since Grossi, et al. (2017) call the urgent
understanding of hybrid organisations’ particularities of their performance,
this paper offers a first step in this understanding by showing that
contemporary NGOs potentially enhance the performance of their roles
through the identified forms of resource mobilisation. Connectedly, NGOs
should have enough competencies in terms of permanent staff, skilled
employees, including leadership skills as part of succession planning, and
adequate human resources practices for staff, including contracts, job
descriptions, payroll, and personnel policies. Although Pache and Santos
(2013), as well as Skelcher and Smith (2015) address the role of individuals
in hybrid organizations, Grossi et al. (2017) have still called for further
research on the role of individuals in hybrid organisations because they
suggest that organizations are, in the end, represented by individuals who
interpret the often-conflicting logics found in hybrid organizations. This study
shows that proper human resource mobilisation is important for the proper
interpretation of the often-conflicting logic in NGOs for better performance
outcomes. Our results extend the applicability of research findings of (e.g.
Fonseka, et al., 2014; Naidu and Chand, 2012; Watson, 2007; Casanueva et
al., 2014; Sedmak, et al., 2011) that support the application of resource-based
view theory as a relevant framework for understanding superior performance
to NGO role-performance in the NGO sector.
The positive and significant link between networking and NGO role-
performance means that NGOs that develop beneficial business and political
networks are likely to achieve their intended targets. The results of Nesheim
et al. (2017) point to this possibility as they find that networking ability is
significantly associated with in-role and extra-role work-performance. The
theoretical reason behind this conjecture is that the ability to network across
groups is a vital source of new ideas and options. Network theorists suggest
that networking serves as a channel for opportunity discovery and to access
a wide variety of resources (Granovetter, 1983). NGOs that have direct lines
of communication or other avenues for collaborations between NGOs and
policymakers at the central and local levels and succeed in lobbying at the
local or national level for the favourable enactment or amendment of
legislation are likely to achieve their objectives. Our results are consistent
with those of (Bing, et al., 2011; Munyon et al., 2013; Lin, et al., 2016) which
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post positive relationships between political skills and performance outcomes
of organisations. Our results make intuitive sense, in that governments still
control a significant portion of strategic factor resources and have
considerable power to allocate resources hence NGOs should maintain close
relationships with governments.
Using hierarchical regression, this study again finds that a better-fitting
model results after the global variables of networking resource mobilization
have been entered controlling for potential confounding variables (Table 4.4).
This is also true when we do not control for potential confounding variables
(Table 4.5) and remain consistent even when the model in Table 4.5 is
bootstrapped. What is surprising about the results at this level of analysis is
that both networking and resource mobilisation are now significant predictors
of NGO role-performance at a 1 percent level or better. However, the design of
this study allows for the consideration of more than simply the main effects
of networking and resource mobilisation by exploring the mediating role of
resource mobilisation in the link between networking and NGO role-
performance. This is significant as a more accurate and detailed description
of the relationships (Friedrich, 1982) is ensured. Testing for mediation effect
(Figure 4.1), we find that the relationship between networking and NGO role
performance is partially explained by their relationship to resource
mobilisation of NGOs. Especially, the results of this study reveal that
resource mobilisation is affected by prior or concurrent decisions to
networking which in turn affect NGO role-performance. In this study, we
show this in terms of a mediating variable (resource mobilisation). As such
resource mobilisation clarifies or explains the relationship between
networking and NGO role-performance. Hence our study contributes to
management practice and extant literature on networking and resource
mobilisation in explaining NGO role-performance in the context of third-world
countries. The study also adds to the conceptual improvement in networking
and resource mobilisation studies and lends considerable support for the
behavioural perspective in the study of networking and its NGO role-
performance improvement potential. Using qualitative factors for networking
and resource mobilisation to explain perceived NGO role-performance, we
offer a unique dimension in understanding the causes of inadequate NGO
role-performance. Having networks that do not lead to financial and human
resources, is like doing no work at all because networks cannot help anything
if, moreover, there are no resources to execute the tasks. Intuitively, networks
can help organisations mobilising for resources. For instance, NGOs
sometimes in addition to donor funding obtain financial resources through
fundraisings. Fundraising can only generate enough finances if the NGO is
highly connected. This implies that networking and resource mobilisation
must work together to achieve the intended goals of the organisation (role
performance). This agrees with those management scholars (e.g. Li et al.,
2013) that believe that networking capability influences organisational
outcomes.
Therefore, this study concludes that if NGOs are to improve the
performance of their roles, networking especially political and resource
mobilisation essentially human resources should be enhanced. It is then
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worthwhile to recommend that governments support NGOs for example by
flexing regulations since they are working towards the wellbeing of the citizens
of the country. NGOs majorly mobilise funds through donors which come with
different conditions some of which could be contradicting the rules of the
country. If NGOs are to successfully perform their objectives, either
government or donors have to flex the rules. NGOs should emphasize
increasing their human resource mobilisation skills like encouraging more
permanent staff as they are seen to be significant in ensuring that they
achieve the targeted objectives. Significant alliances with the government and
other political affiliates are very important. Politicians perform a significant
role in the acceptance or rejection of activities of NGOs. Creating a good
relationship with them potentially helps NGOs achieve their objectives as they
can easily get to know the interests of the government and work towards
satisfying society's needs. This research is limited to NGOs but governments
in general and in particular some state agencies fail to realise their objectives.
Further research may wish to focus on other sectors (like government
institutions) to establish the relationship between networking, resource
mobilisation, and those institutions' role-performance.
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