UNDERSTANDING ORGANISATIONAL CAPACITY BUILDING AND ITS INFLUENCE ON FIRM EFFECTIVENESS
DOI:
https://doi.org/10.18623/rvd.v23.6642Keywords:
Capacity Building, Dynamic Capacity, Efficiency, Incremental Change Management, Organisational EffectivenessAbstract
Organisational development plays a crucial role in enhancing overall organisational effectiveness, yet many organisations face challenges in effectively implementing development initiatives. This study investigated the impact of organisational capacity building on organisational effectiveness, with particular emphasis on indicators such as the incremental change management process. A descriptive survey research design was employed to systematically capture existing conditions without manipulating variables. The study population consisted of 420 employees. Structured questionnaires were used to gather data, which were then verified by professionals and put through the test-retest technique to determine reliability. The results showed coefficients ranging from 0.723 to 0.835. While the data was presented using descriptive statistics, such as frequency tables and percentages, the hypotheses were tested using basic regression analysis. The results showed that managing changes gradually improves organisational effectiveness. The study concludes that organisational development initiatives positively influence overall organisational effectiveness, and investing in employee development, structured change management, and team-building strategies is essential for sustained performance improvement. The study recommends that organisations invest in employee development, structured change management initiatives, performance management systems, and team-building programs to strengthen skills, competencies, and overall organisational effectiveness.
References
Akhigbe, O., Atolagbe, T., & Zhan, J. (2020). The impact of training on organizational performance: A study of selected Nigerian banking industries. Journal of African Business, 21(1), 97–115.
Almeida, H., Caldas, M. P., & Oliveira, M. (2020). Capacity building and organisational performance: Evidence from healthcare institutions. Health Services Management Research, 33(2), 76–85. https://doi.org/10.1177/0951484820925890
Ammons, D. N., & Rivenbark, W. C. (2019). Public management performance: Assessing measurement, analysis, and action. Georgetown University Press.
Andrews, M., Pritchett, L., & Woolcock, M. (2017). Building state capability: Evidence, analysis, action. Oxford University Press.
Argyris, C., & Schön, D. A. (2018). Organisational learning II: Theory, method, and practice. Routledge.
Armenakis, A. A., & Harris, S. G. (2019). Reflections: Our journey in organizational change research and practice. Journal of Change Management, 9(2), 127–142.
Baker, J. J., Zimmerman, R., & Heard, K. (2020). Improving efficiency and effectiveness in healthcare organisations. Journal of Healthcare Management, 65(4), 259–270. https://doi.org/10.1097/JHM-D-19-00075
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Bertalanffy, L. (1968). General system theory: Foundations, development, applications. George Braziller.
Brown, L., & Wilson, S. (2021). The role of successful succession planning in organizational performance: A study of ABC Company. Journal of Leadership Studies, 12(1), 78–92.
Brown, M., & Smith, K. (2018). Change management processes and organizational efficiency: A study in a US-based company. Journal of Organizational Change Management, 5(4), 312–328.
Brown, M., & White, L. (2023). Examining the impact of performance management system on service delivery quality: Evidence from Ghana. Journal of Performance Management, 45(3), 189–204.
Brynjolfsson, E., & Hitt, L. (2020). Beyond computation: Information technology, organizational transformation and business performance. Journal of Economic Perspectives, 14(4), 23–48.
Bryson, J. M., Crosby, B. C., & Bloomberg, L. (2018). Public value governance: Moving beyond traditional public administration and the new public management. Georgetown University Press.
Burnes, B. (2014). Emergent change and planned change: Competitors or allies? International Journal of Operations & Production Management, 24(9), 886–902.
Cameron, K. S., & Whetten, D. A. (2017). Organisational effectiveness: A comparison of multiple models. Academic Press.
Cameron, K., & Quinn, R. (2021). Diagnosing and changing organizational culture: Based on the competing values framework. John Wiley & Sons.
Chalmeta, R. (2020). Methodology for the development of holistic performance measures in organizations. International Journal of Production Economics, 182, 105–117.
Cummings, T. G., & Worley, C. G. (2018). Organization development and change (10th ed.). Cengage Learning.
Daft, R. L. (2018). Organisation theory and design (13th ed.). Cengage Learning.
Dahlgaard, J. J., Kristensen, K., & Kanji, G. K. (2019). Fundamentals of total quality management: Process analysis and improvement. Routledge.
DelliFraine, J. L., Langabeer, J. R., & Nembhard, I. M. (2018). Assessing the evidence of Lean and Six Sigma in the literature: What works? Quality Management in Healthcare, 27(1), 21–29. https://doi.org/10.1097/QMH.0000000000000177
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10–11), 1105–1121.
Eisingerich, A. B., Rubera, G., Seifert, M., & Midgley, D. F. (2020). Linking organisational capabilities and performance: A dynamic perspective. Journal of Business Research, 112, 428–439. https://doi.org/10.1016/j.jbusres.2020.01.035
Ezinwa, P. N., Etele, V. A., Nwadinobi, V. N., & Agbaeze, E. K. (2025). Examining Gender Disparity Issues and Their Influence on Employee Turnover in the Health Sector. Organization Development Journal, 43(2).
French, W. L., Bell, C. H., & Zawacki, R. A. (2021). Organization development: Behavioral science interventions for organization improvement. Routledge.
Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(6), 109–122.
Herman, R. D., & Renz, D. O. (2018). Advancing nonprofit organisational effectiveness research and theory: Nine theses. Nonprofit Management and Leadership, 28(2), 245–260. https://doi.org/10.1002/nml.21327
Huang, Y., & Wang, L. (2018). The role of organizational development in enhancing organizational productivity: A study in China. Journal of Organizational Development, 6(2), 132–148.
Johnson, R., & White, M. (2019). Succession planning and organizational sustainability: A study in Australia. Journal of Human Resource Management, 12(1), 78–94.
Kotter, J. P. (1996). Leading change. Harvard Business School Press.
Lee, E., & Kim, Y. (2019). Enhancing organizational performance through performance management systems: The role of organizational development. Journal of Strategic Management, 35(2), 112–129.
Lee, E., & Kim, Y. (2019). Enhancing organizational performance through performance management systems: The role of organizational development. Journal of Strategic Management, 35(2), 112–129.
Lee, H., & Kim, S. (2017). The impact of performance management systems on organizational quality of service delivery: Evidence from South Korea. International Journal of Service Quality, 8(3), 210–225.
Lee, S., & Clark, K. (2023). The impact of leadership development on organizational productivity: A study in the UK. Journal of Organizational Development, 34(2), 123–137.
Makkonen, H., & Olkkonen, R. (2020). The role of organizational development in enhancing organizational performance: A review of the literature. Journal of Organizational Change Management, 33(7), 1210–1230.
McCaffrey, J., Deering, K., Garretson, S., & Kowalski, M. (2017). Measuring organisational capacity to support evidence based practices: Development and psychometric properties. American Journal of Community Psychology, 60(1–2), 202–217. https://doi.org/10.1002/ajcp.12128
Monyei, F. E., Ukpere, W. I., & Nnabugwu, O. C. (2023). Organisational intervention and its growing quest in the 4IR era. Annals of Spiru Haret University. Economic Series, 23(4), 539-552.
Musleh, M., Subianto, A., Tamrin, M. H., & Bustami, M. R. (2023). Institutional design and organizational effectiveness in developing economies. Journal of Organizational Studies, 6(1), 75–90.
Nelson, R., & Winter, S. G. (2014). An evolutionary theory of economic change. Harvard University Press.
Olajide, J. (2021). Organizational development and organizational performance: A meta-analysis. Journal of Organizational Behavior, 3(2), 87–101.
O'Reilly, C., Caldwell, D., & Barnett, W. (2021). Workgroup efficiency: Exploring the effects of leadership, autonomy, and group understanding. Journal of Management, 40(6), 1537–1563.
Pollitt, C. (2016). Managing performance: International comparisons. Routledge.
Rainey, H. G., & Jung, C. S. (2018). Public management reform: A comparative analysis. Oxford University Press.
Rees, L., & Porter, C. (2021). The impact of leadership development programs on organizational productivity: A case study in the UK. Journal of Leadership Studies, 3(2), 145–163.
Rundall, T. G., Shortell, S. M., & Hsu, J. (2016). Effects of organisation wide capacity building on performance: Results from a national healthcare initiative. Medical Care Research and Review, 73(1), 45–66. https://doi.org/10.1177/1077558714564617
Salas, E., Tannenbaum, S. I., Kraiger, K., & Smith Jentsch, K. A. (2015). The science of training and development in organisations: What matters in practice? Psychological Science in the Public Interest, 16(2), 74–101. https://doi.org/10.1177/1529100614555526
Schumpeter, J. A. (1934). The theory of economic development: An inquiry into profits, capital, credit, interest, and the business cycle (R. Opie, Trans.). Transaction Publishers.
Senge, P. M. (2006). The fifth discipline: The art and practice of the learning organisation. Doubleday.
Senge, P. M. (2006). The fifth discipline: The art and practice of the learning organisation. Doubleday.
Senge, P. M. (2019). The fifth discipline: The art and practice of the learning organization. Doubleday.
Shortell, S. M., Bennett, C. L., & Byck, G. R. (2017). An assessment of the impact of continuous quality improvement on clinical practice: What does the evidence show? Health Services Research, 32(5), 755–791. https://doi.org/10.1111/1475-6773.00026
Teece, D. J. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.
Ukandu, N. E., Awok, P., Ukpere, W. I., Iwuchukwu, G. N., & Monyei, F. E. (2025). The effect of incremental change management strategy on the efficiency of health centres in an emerging economy. Annals of Spiru Haret University. Economic Series, 25(3), 350-366.
Van Naranjo-Valencia, J. C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2021). Organizational development, organizational learning, and innovation: A meta-analysis. Journal of Business Research, 124, 489–497.
Vinayan, G., Jayashree, S., & Marthandan, G. (2012). Critical success factors of sustainable competitive advantage: A study in Malaysian manufacturing industries. International Journal of Business and Management, 7(22), 29–45.
Volberda, H. W., Foss, N. J., & Lyles, M. A. (2021). Strategic management and organisational dynamics: The challenge of renewing organisations. Oxford University Press.
Winter, S. G. (2003). Understanding dynamic capabilities. Strategic Management Journal, 24(10), 991–995.
Wolfe, M. T., Hamer, M., & Bell, J. (2021). Capacity building outcomes and organisational performance: A longitudinal study in service organisations. Journal of Management Studies, 58(4), 981–1005. https://doi.org/10.1111/joms.12635
Yuan, M., Anand, R., & Stephens, J. (2023). The impact of training on organisational performance: A meta analysis of empirical studies. Journal of Management, 49(1), 253–273. https://doi.org/10.1177/01492063211060310
Yuan, M., Anand, R., & Stephens, J. (2023). The impact of training on organisational performance: A meta analysis of empirical studies. Journal of Management, 49(1), 253–273. https://doi.org/10.1177/01492063211060310
Downloads
Published
How to Cite
Issue
Section
License
I (we) submit this article which is original and unpublished, of my (our) own authorship, to the evaluation of the Veredas do Direito Journal, and agree that the related copyrights will become exclusive property of the Journal, being prohibited any partial or total copy in any other part or other printed or online communication vehicle dissociated from the Veredas do Direito Journal, without the necessary and prior authorization that should be requested in writing to Editor in Chief. I (we) also declare that there is no conflict of interest between the articles theme, the author (s) and enterprises, institutions or individuals.
I (we) recognize that the Veredas do Direito Journal is licensed under a CREATIVE COMMONS LICENSE.
Licença Creative Commons Attribution 3.0
