Moderating Effect of Organizational Culture on the Relationship between Sustainability Disclosures and Strategy Implementation in Non-Governmental Organizations in the Environment Sector in Kenya
DOI:
https://doi.org/10.53819/81018102t2602Abstract
Despite sustainability reporting becoming widespread in Non-Governmental Organizations, the translation of disclosed commitments into executed strategy remains uneven, which suggests that disclosure alone is an incomplete explanation of implementation effectiveness. This paper therefore examined the moderating effect of organizational culture on the relationship between sustainability disclosures and strategy implementation in non-governmental organizations in the environment sector in Kenya. The paper tested the null hypothesis that organizational culture has no statistically significant moderating effect on the relationship between sustainability disclosures and strategy implementation. It was anchored in Organizational Culture Theory, which holds that shared assumptions, values and norms determine the extent to which formal systems and disclosures are translated into action. A positivist paradigm and a quantitative cross-sectional survey design were adopted. A stratified random sample of 150 organizations was drawn from the 217 registered environmental NGOs in Kenya, and data were collected from one key informant in each organization using a structured five-point Likert scale questionnaire. A total of 138 questionnaires were completed and returned, giving a response rate of 92 percent. Cronbach alpha for the organizational culture scale was 0.779, confirming instrument reliability. Descriptive analysis established a positive perception of organizational culture, with an overall average mean of 3.80 and average standard deviation of 0.93, against 3.64 for strategy implementation. Correlation analysis established a strong, positive and significant association between organizational culture and strategy implementation (r = 0.712, p < 0.01). Hierarchical moderated regression established that the interaction between sustainability disclosures and organizational culture was positive and statistically significant (β = 0.099, B = 0.148, t = 4.945, p < 0.001), raising the coefficient of determination from 0.938 to 0.948. The null hypothesis was rejected. The paper concludes that culture conditions rather than merely accompany the disclosure-implementation relationship, and recommends that leadership pair investment in disclosure systems with deliberate culture development programmes.
Keywords: Organizational Culture, Sustainability Disclosures, Strategy Implementation, Moderation, Environmental Non-Governmental Organizations, Kenya
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