Restructuring Strategies and Organizational Performance of Health Sector NGO’s in Kenya: A Case of Amref Health Africa

Abstract

This study investigated the effect of restructuring strategies on the organizational performance of health sector NGOs in Kenya, focusing on Amref Health Africa. These organizations face numerous challenges, including strategic and operational resulting from unprecedented external factors. While restructuring is commonly applied to navigate such challenges, its effects on performance remain underexplored in the Kenyan context. The main objective was to examine the effect of restructuring strategies on organizational performance at Amref, with specific objectives including the identification of applied restructuring strategies, assessment of organizational performance, and analysis of the relationship between the two. The study was grounded in three theoretical frameworks: The Resource-Based View (RBV), which emphasizes internal capabilities as sources of competitive advantage; Contingency Theory, which stresses the fit between structure and environment; and Organizational Change Theory, which highlights the role of change processes in shaping behaviour and outcomes. A cross-sectional descriptive survey design was used, targeting 405 staff, with 122 senior staff selected through census sampling. Data collection involved online questionnaires using Likert scales. Analysis was conducted using SPSS Version 28.0, applying both descriptive and inferential techniques. Findings revealed widespread use of restructuring strategies such as workflow changes, decision structure modifications, resource reallocation, and communication adjustments. These strategies were positively associated with improved organizational performance, particularly in operational efficiency, stakeholder satisfaction, and market positioning. A strong positive correlation (r=0.765) was established, and regression analysis indicated that restructuring strategies, leadership, and communication accounted for 98.5% of performance variation. Socio-demographic factors had minimal influence. The study concluded that strategic restructuring enhances performance in health NGOs. It recommended focusing on adaptive leadership, clear communication, and continuous evaluation of restructuring efforts. Further research was encouraged in areas such as inter-organizational comparisons, digital transformation, and employee well-being during change.