Research Article
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Financial Sustainability of Local Non-Governmental Organizations in Tanintharyi Region, Myanmar

Year 2025, Volume: 39 Issue: 3, 315 - 328, 15.07.2025
https://doi.org/10.16951/trendbusecon.1603793

Abstract

This study is aimed to achieve two objectives. The first objective is to explore the financial sustainability and second is to analyze the effect of factors influencing financial sustainability of local NGOs in Tanintharyi region, Myanmar. The current study is guided by resource-based theory and key factors influencing financial sustainability discussed in this study are donor relationship management, income diversification, financial management practices, and management competency. To achieve these objectives, a quantitative methodology employing surveys was utilized, including 105 respondents across five local NGOs. Findings reveal that donor relationship management, income diversification, and management competency significantly enhance financial sustainability, while there is no significant positive effect of financial management practices on financial sustainability. The results highlight the importance of managerial competency, robust donor relations, and diversified revenue streams to mitigate financial vulnerabilities. Practical recommendations are proposed, including capacity-building programs, transparent accountability frameworks, and innovative funding strategies to foster long-term resilience and operational efficacy. This research contributes to the theoretical understanding of financial sustainability and offers actionable insights for local NGOs in resource-constrained environments.

Ethical Statement

Ethics committee approval for this study was obtained from the Myanmar Research Synergy Association (MRSA) (Date: January 3, 2025, Number: 20240903).

References

  • Ahdika, A. (2017). Improvement of quality, interest, critical, and analytical thinking ability of students through the application of research-based learning (RBL) in introduction to stochastic processes subject. International Electronic Journal of Mathematics Education, 12(2), 167-191. [CrossRef]
  • Akingbola, K., Rogers, S. E., & Baluch, A. M. (2019). Change Management in Nonprofit Organizations: Theory and Practice. Springer International Publishing.
  • Ali, A. A., & Kilika, J. M. (2016). Effect of Donor Relation Practices on Financial Sustainability of Non-Governmental Organizations Operating in Garissa Country, Kenya. American Journal of Finance, 1(1), 40–55. [CrossRef]
  • Alter, K. (2007). The Four Lenses Strategic Framework: Toward an Integrated Social Enterprise Methodology. Social Enterprise, Typology.
  • Anheier, H. K., & Toepler, S. (2021). The governance and management of non-profit organizations: A comparative framework. Routledge.
  • Aung, P. (2021). Financial sustainability challenges of local NGOs in Myanmar. Asian Journal of Development Studies, 41(3), 12-28.
  • Banks, N., Hulme, D., & Edwards, M. (2015). NGOs, States, and Donors Revisited: Still Too Close for Comfort? World Development, 66(1), 707-718. [CrossRef]
  • Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1),99–120. [CrossRef]
  • Bowman, W. (2011). Financial capacity and sustainability of ordinary nonprofits. Nonprofit Management and Leadership, 22(1), 37-51. [CrossRef]
  • Breeze, B., & Scaife, W. (2015). Encouraging generosity: The practice and organization of fund-raising across nations. In The Palgrave handbook of global philanthropy (pp. 570-596). Palgrave Macmillan UK. [CrossRef]
  • Cabedo, J. D., Fuertes-Fuertes, I., Maset-LLaudes, A., & Tirado-Beltrán, J. M. (2018). Improving and measuring transparency in NGOs: A disclosure index for activitiesand projects. Nonprofit Management & Leadership, 28(3), 285-425. [CrossRef]
  • Choudhury, R., & Ahmed, S. (2023). The role of technology in NGO sustainability: A 21st-century perspective. Global Development Journal, 34(2), 233-245.
  • Ebenezer, A. A., Musah, A., & Ahmed, I. A. (2020). Determinants of Financial Sustainability of Non-Governmental Organizations (NGOs) in Ghana. Journal of Accounting and Management, 10(2020), 49-68. [CrossRef]
  • Edwards, M. (2021). Civil society as associational life. The Nature of the Nonprofit Sector. Routledge.
  • Elliott, J. (2012). An introduction to sustainable development. Routledge.
  • Frawley, T. and Fahy, J. (2006). Revisiting the First-Mover Advantage Theory. A Resource-Based Perspective. Irish Journal of Management, 33(1), 273-295.
  • Gee, I. H., Nahm, P. I., Yu, T., & Cannella, A. A. (2023). Non-for-Profit Organizations: A Multi-Disciplinary Review and Assessment from a Strategic Management Perspective. Journal of Management, 49(1), 237-279. [CrossRef]
  • Gleißner, W., Günther, T. & Walkshäusl, C. (2022). Financial sustainability: measurement and empirical evidence. Journal of Business Economics, 92(2022), 467–516. [CrossRef]
  • Glover, J. L., Champion, D., Daniels, K. J., & Dainty, A. J. D. (2014). An institutional theory perspective on sustainable practices across the dairy supply chain. International Journal Production Economics Sustainability, 152(2014), 102-111. [CrossRef]
  • Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(S2), 109–122. [CrossRef]
  • Grindle, M. S. (2017). Good Governance: The Inflation of an Idea. Governance, 30(1), 17-22. [CrossRef]
  • Gul, K., & Morande, S. (2023). Factors Influencing Sustainability of Non-Governmental Organizations in the developing world. SEISENSE Business Review, 3(1), 1-21. [CrossRef]
  • Hasyim, H., & Bakri, M. (2024). Challenges and Strategies for Small Business Survival. The Journal of Business and Management Research, 6(2), 80–90. [CrossRef]
  • Hoque, M.M. (2024). Crowdfunding for innovation: a comprehensive empirical review. Future Business Journal, 102(2024), 1-19. [CrossRef]
  • Jacinta, W. N., & Gaiku, P. (2022). Effect of Funding Diversification on the Financial Performance of Nongovernmental Organizations in Kenya: A Case of Kenya Red Cross Society. European Scientific Journal, 18(9), 64-78. [CrossRef]
  • Kaldor, M. (2003). The idea of global civil society. International Affairs, 79(3), 583-593. [CrossRef]
  • Khan, M. A., Naveed, S., Habib, M., Ali, S. S., Umer, N., & Iqbal, M. (2024). NGOS Management: A Roadmap To Effective Theory And Practices. Migration Letters, 21(S14), 380-391. [CrossRef]
  • Kyaw, S. T., & Aung, H. M. (2021). Financial independence challenges among local NGOs in Myanmar: An analysis of donor reliance and resource diversification. Asian Journal of Nonprofit Studies, 8(2), 34-50.
  • Lewis, D., & Kanji, N. (2022). Non-Governmental Organizations and Development: Theory and Practice in the 21st Century. Routledge.
  • Lewis, T. (2011). Financial sustainability essentials: Course handbook. Oxford: Management Accounting for Non-Governmental Organizations (MANGO).
  • Martens, K. (2002). Mission impossible? Defining NGOs. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 13(3), 271-285. [CrossRef]
  • Mitlin, D., Hickey, S., & Bebbington, A. (2014). Reclaiming development? NGOs and the challenge of alternatives. World development, 35(10), 1699-1720. [CrossRef]
  • Muriithi, C. W. (2014). Factors that determine sustainability of nonprofit organizations in Kenya (Master Thesis, United States International University-Africa). ScholarWorks. [CrossRef]
  • Nikita, N. A., & Azim, K. S. (2024). Digital Transformation in Non-Profit Organizations: Strategies, Challenges, and Successes. Advanced International Journal of Multidisciplinary Research, 2(5), 1-21. [CrossRef]
  • Njoroge, B. G. (2013). An investigation on the factors influencing sustainability of NGO’s in Kenya (Master Thesis, University of Nairobi). ScholarWorks. [CrossRef]
  • Okorley, E. L., & Nkrumah, E. E. (2012). Organizational factors influencing sustainability of local Non-Governmental Organizations in Ghana. International Journal of Social Economics. 39(5), 330-341. [CrossRef]
  • Ortega-Rodríguez, C., Licerán-Gutiérrez, A., & Moreno-Albarracín, A. L. (2020). Transparency as a Key Element in Accountability in Non-Profit Organizations: A Systematic Literature Review. Sustainability, 12(14), 1-21. [CrossRef]
  • Petaraf, M. A. & Barney, J. B. (2003) Unraveling the resource-based tangle. Journal of Managerial and Decision Economics. 24(4), 309-323. [CrossRef]
  • Salamon, L. M., & Anheier, H. K. (1997). Defining the nonprofit sector: A cross-national analysis. England, Eng: Manchester University Press.
  • Samad, N. H., Ahmad, N. H., & Suria, K. (2023). Sustainability of Non-Profit Organizations: A Systematic Review. Accounting and Finance Research, 12(2), 25-38. [CrossRef]
  • Sarrafzadeh, M., Martin, B., & Hazeri, A. (2010). Knowledge management and its potential applicability for libraries. Library Management, 31(3), 198-212. [CrossRef]
  • Saungweme, M. (2014). Factors influencing financial sustainability of local NGOs: The case of Zimbabwe. Dissertation, Stellenbosch University.
  • Schaltegger, S., & Burritt, R. (2018). Business cases and corporate engagement with sustainability: Differentiating ethical motivations. Journal of Business Ethics, 147(2018), 241-259. [CrossRef]
  • Singhania, M., Chadha, G., & Prasad, R. (2024). Sustainable finance research: Review and agenda. International Journal of Finance & Economics, 29(4), 4010-4045. [CrossRef]
  • Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. [CrossRef]
  • Than, T. T., & Zaw, K. M. (2022). Financial challenges and capacity gaps of local NGOs in Myanmar: A focus on alternative funding sources. Journal of Southeast Asian Development Studies, 14(3), 89-105.
  • UNDP. (2015). The State of Local Governance: Trends in Tanintharyi. United Nations Development Programme, Myanmar. [CrossRef]
  • Urefe, O., Odonkor, T. N., Chiekezie, N. R., & Agu, E. E. (2024). Enhancing small business success through financial literacy and education. Magna Scientia Advanced Research and Review, 11(2), 297-315. [CrossRef]
  • Vakil, A. C. (1997). Confronting the classification problem: Toward a taxonomy of NGOs. World Development, 25(12), 2057-2070. [CrossRef]
  • Van Dooren, W., & Van de Walle, S. (2016). Performance information in the public sector: How it is used. Palgrave Macmillan. [CrossRef]
  • Wachira, L. W. (2016). Factors affecting financial sustainability of local NGOs in Kenya, Kiambu County (Master Thesis, KCA University). ScholarWorks. [CrossRef]

Myanmar Tanintharyi Bölgesindeki Yerel Sivil Toplum Kuruluşlarının Finansal Sürdürülebilirliği

Year 2025, Volume: 39 Issue: 3, 315 - 328, 15.07.2025
https://doi.org/10.16951/trendbusecon.1603793

Abstract

Bu çalışma iki amacı gerçekleştirmeyi amaçlamaktadır. İlk amaç finansal sürdürülebilirliği araştırmak, ikincisi ise Myanmar'ın Tanintharyi bölgesindeki yerel STK'ların finansal sürdürülebilirliğini etkileyen faktörlerin etkisini analiz etmektir. Mevcut çalışma, kaynak temelli teori tarafından yönlendirilmektedir ve bu çalışmada tartışılan finansal sürdürülebilirliği etkileyen temel faktörler, bağışçı ilişkileri yönetimi, gelir çeşitlendirmesi, finansal yönetim uygulamaları ve yönetim yeterliliğidir. Bu hedeflere ulaşmak için, beş yerel STK'dan 105 katılımcıyı kapsayan anketlerden yararlanan niceliksel bir metodoloji kullanıldı. Bulgular, bağışçı ilişkileri yönetimi, gelir çeşitlendirmesi ve yönetim yetkinliğinin finansal sürdürülebilirliği önemli ölçüde artırdığını ancak finansal yönetim uygulamalarının finansal sürdürülebilirlik üzerinde anlamlı bir olumlu etkisinin olmadığını ortaya koyuyor. Sonuçlar, finansal zayıflıkları azaltmak için yönetimsel yetkinliğin, güçlü bağışçı ilişkilerinin ve çeşitlendirilmiş gelir akışlarının önemini vurgulamaktadır. Uzun vadeli dayanıklılığı ve operasyonel etkinliği teşvik etmek için kapasite geliştirme programları, şeffaf hesap verebilirlik çerçeveleri ve yenilikçi finansman stratejileri de dahil olmak üzere pratik öneriler önerilmektedir. Bu araştırma, finansal sürdürülebilirliğin teorik olarak anlaşılmasına katkıda bulunuyor ve kaynakların kısıtlı olduğu ortamlardaki yerel STK'lar için eyleme geçirilebilir bilgiler sunuyor.

Ethical Statement

Bu çalışma için etik komite onayı Myanmar Research Synergy Association (MRSA)’dan (Tarih: 03.01.2025, Sayı: 20240903) alınmıştır.

References

  • Ahdika, A. (2017). Improvement of quality, interest, critical, and analytical thinking ability of students through the application of research-based learning (RBL) in introduction to stochastic processes subject. International Electronic Journal of Mathematics Education, 12(2), 167-191. [CrossRef]
  • Akingbola, K., Rogers, S. E., & Baluch, A. M. (2019). Change Management in Nonprofit Organizations: Theory and Practice. Springer International Publishing.
  • Ali, A. A., & Kilika, J. M. (2016). Effect of Donor Relation Practices on Financial Sustainability of Non-Governmental Organizations Operating in Garissa Country, Kenya. American Journal of Finance, 1(1), 40–55. [CrossRef]
  • Alter, K. (2007). The Four Lenses Strategic Framework: Toward an Integrated Social Enterprise Methodology. Social Enterprise, Typology.
  • Anheier, H. K., & Toepler, S. (2021). The governance and management of non-profit organizations: A comparative framework. Routledge.
  • Aung, P. (2021). Financial sustainability challenges of local NGOs in Myanmar. Asian Journal of Development Studies, 41(3), 12-28.
  • Banks, N., Hulme, D., & Edwards, M. (2015). NGOs, States, and Donors Revisited: Still Too Close for Comfort? World Development, 66(1), 707-718. [CrossRef]
  • Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1),99–120. [CrossRef]
  • Bowman, W. (2011). Financial capacity and sustainability of ordinary nonprofits. Nonprofit Management and Leadership, 22(1), 37-51. [CrossRef]
  • Breeze, B., & Scaife, W. (2015). Encouraging generosity: The practice and organization of fund-raising across nations. In The Palgrave handbook of global philanthropy (pp. 570-596). Palgrave Macmillan UK. [CrossRef]
  • Cabedo, J. D., Fuertes-Fuertes, I., Maset-LLaudes, A., & Tirado-Beltrán, J. M. (2018). Improving and measuring transparency in NGOs: A disclosure index for activitiesand projects. Nonprofit Management & Leadership, 28(3), 285-425. [CrossRef]
  • Choudhury, R., & Ahmed, S. (2023). The role of technology in NGO sustainability: A 21st-century perspective. Global Development Journal, 34(2), 233-245.
  • Ebenezer, A. A., Musah, A., & Ahmed, I. A. (2020). Determinants of Financial Sustainability of Non-Governmental Organizations (NGOs) in Ghana. Journal of Accounting and Management, 10(2020), 49-68. [CrossRef]
  • Edwards, M. (2021). Civil society as associational life. The Nature of the Nonprofit Sector. Routledge.
  • Elliott, J. (2012). An introduction to sustainable development. Routledge.
  • Frawley, T. and Fahy, J. (2006). Revisiting the First-Mover Advantage Theory. A Resource-Based Perspective. Irish Journal of Management, 33(1), 273-295.
  • Gee, I. H., Nahm, P. I., Yu, T., & Cannella, A. A. (2023). Non-for-Profit Organizations: A Multi-Disciplinary Review and Assessment from a Strategic Management Perspective. Journal of Management, 49(1), 237-279. [CrossRef]
  • Gleißner, W., Günther, T. & Walkshäusl, C. (2022). Financial sustainability: measurement and empirical evidence. Journal of Business Economics, 92(2022), 467–516. [CrossRef]
  • Glover, J. L., Champion, D., Daniels, K. J., & Dainty, A. J. D. (2014). An institutional theory perspective on sustainable practices across the dairy supply chain. International Journal Production Economics Sustainability, 152(2014), 102-111. [CrossRef]
  • Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(S2), 109–122. [CrossRef]
  • Grindle, M. S. (2017). Good Governance: The Inflation of an Idea. Governance, 30(1), 17-22. [CrossRef]
  • Gul, K., & Morande, S. (2023). Factors Influencing Sustainability of Non-Governmental Organizations in the developing world. SEISENSE Business Review, 3(1), 1-21. [CrossRef]
  • Hasyim, H., & Bakri, M. (2024). Challenges and Strategies for Small Business Survival. The Journal of Business and Management Research, 6(2), 80–90. [CrossRef]
  • Hoque, M.M. (2024). Crowdfunding for innovation: a comprehensive empirical review. Future Business Journal, 102(2024), 1-19. [CrossRef]
  • Jacinta, W. N., & Gaiku, P. (2022). Effect of Funding Diversification on the Financial Performance of Nongovernmental Organizations in Kenya: A Case of Kenya Red Cross Society. European Scientific Journal, 18(9), 64-78. [CrossRef]
  • Kaldor, M. (2003). The idea of global civil society. International Affairs, 79(3), 583-593. [CrossRef]
  • Khan, M. A., Naveed, S., Habib, M., Ali, S. S., Umer, N., & Iqbal, M. (2024). NGOS Management: A Roadmap To Effective Theory And Practices. Migration Letters, 21(S14), 380-391. [CrossRef]
  • Kyaw, S. T., & Aung, H. M. (2021). Financial independence challenges among local NGOs in Myanmar: An analysis of donor reliance and resource diversification. Asian Journal of Nonprofit Studies, 8(2), 34-50.
  • Lewis, D., & Kanji, N. (2022). Non-Governmental Organizations and Development: Theory and Practice in the 21st Century. Routledge.
  • Lewis, T. (2011). Financial sustainability essentials: Course handbook. Oxford: Management Accounting for Non-Governmental Organizations (MANGO).
  • Martens, K. (2002). Mission impossible? Defining NGOs. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 13(3), 271-285. [CrossRef]
  • Mitlin, D., Hickey, S., & Bebbington, A. (2014). Reclaiming development? NGOs and the challenge of alternatives. World development, 35(10), 1699-1720. [CrossRef]
  • Muriithi, C. W. (2014). Factors that determine sustainability of nonprofit organizations in Kenya (Master Thesis, United States International University-Africa). ScholarWorks. [CrossRef]
  • Nikita, N. A., & Azim, K. S. (2024). Digital Transformation in Non-Profit Organizations: Strategies, Challenges, and Successes. Advanced International Journal of Multidisciplinary Research, 2(5), 1-21. [CrossRef]
  • Njoroge, B. G. (2013). An investigation on the factors influencing sustainability of NGO’s in Kenya (Master Thesis, University of Nairobi). ScholarWorks. [CrossRef]
  • Okorley, E. L., & Nkrumah, E. E. (2012). Organizational factors influencing sustainability of local Non-Governmental Organizations in Ghana. International Journal of Social Economics. 39(5), 330-341. [CrossRef]
  • Ortega-Rodríguez, C., Licerán-Gutiérrez, A., & Moreno-Albarracín, A. L. (2020). Transparency as a Key Element in Accountability in Non-Profit Organizations: A Systematic Literature Review. Sustainability, 12(14), 1-21. [CrossRef]
  • Petaraf, M. A. & Barney, J. B. (2003) Unraveling the resource-based tangle. Journal of Managerial and Decision Economics. 24(4), 309-323. [CrossRef]
  • Salamon, L. M., & Anheier, H. K. (1997). Defining the nonprofit sector: A cross-national analysis. England, Eng: Manchester University Press.
  • Samad, N. H., Ahmad, N. H., & Suria, K. (2023). Sustainability of Non-Profit Organizations: A Systematic Review. Accounting and Finance Research, 12(2), 25-38. [CrossRef]
  • Sarrafzadeh, M., Martin, B., & Hazeri, A. (2010). Knowledge management and its potential applicability for libraries. Library Management, 31(3), 198-212. [CrossRef]
  • Saungweme, M. (2014). Factors influencing financial sustainability of local NGOs: The case of Zimbabwe. Dissertation, Stellenbosch University.
  • Schaltegger, S., & Burritt, R. (2018). Business cases and corporate engagement with sustainability: Differentiating ethical motivations. Journal of Business Ethics, 147(2018), 241-259. [CrossRef]
  • Singhania, M., Chadha, G., & Prasad, R. (2024). Sustainable finance research: Review and agenda. International Journal of Finance & Economics, 29(4), 4010-4045. [CrossRef]
  • Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. [CrossRef]
  • Than, T. T., & Zaw, K. M. (2022). Financial challenges and capacity gaps of local NGOs in Myanmar: A focus on alternative funding sources. Journal of Southeast Asian Development Studies, 14(3), 89-105.
  • UNDP. (2015). The State of Local Governance: Trends in Tanintharyi. United Nations Development Programme, Myanmar. [CrossRef]
  • Urefe, O., Odonkor, T. N., Chiekezie, N. R., & Agu, E. E. (2024). Enhancing small business success through financial literacy and education. Magna Scientia Advanced Research and Review, 11(2), 297-315. [CrossRef]
  • Vakil, A. C. (1997). Confronting the classification problem: Toward a taxonomy of NGOs. World Development, 25(12), 2057-2070. [CrossRef]
  • Van Dooren, W., & Van de Walle, S. (2016). Performance information in the public sector: How it is used. Palgrave Macmillan. [CrossRef]
  • Wachira, L. W. (2016). Factors affecting financial sustainability of local NGOs in Kenya, Kiambu County (Master Thesis, KCA University). ScholarWorks. [CrossRef]
There are 51 citations in total.

Details

Primary Language English
Subjects Accounting Forensics
Journal Section Research Articles
Authors

Htin Kyaw Lin 0009-0004-4033-7879

Early Pub Date July 13, 2025
Publication Date July 15, 2025
Submission Date December 18, 2024
Acceptance Date May 5, 2025
Published in Issue Year 2025 Volume: 39 Issue: 3

Cite

APA Lin, H. K. (2025). Financial Sustainability of Local Non-Governmental Organizations in Tanintharyi Region, Myanmar. Trends in Business and Economics, 39(3), 315-328. https://doi.org/10.16951/trendbusecon.1603793

Content of this journal is licensed under a Creative Commons Attribution 4.0 International License

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