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The Efficiency-Impact Paradox: Project Management Practices and Organizational Performance in Ethiopian Non-Governmental Organizations

Simachew Alamneh Haile¹, Dr. Meentu Grover²
¹ PhD Candidate, Department of Management, Guru Kashi University, Talwandi Sabo, Punjab, India
² Assistant Professor & Head, Department of Management, Guru Kashi University, Talwandi Sabo, Punjab, India
Email: simaau2006@yahoo.com, drmeentugrover172076@gku.ac.in

Int. Res. J. Bus. Soc. Sci. 2026, 12(xxx); https://doi.org/10.64907/xkmf.v12i1.irjbss.xxx

Submission received: 4 January 2026 / Revised: xxxxxxx/ Accepted: xxxxxxxx / Published: xxxx

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                                                             Abstract

Purpose: This research examines the uptake of Project Management (PM) practices and their effects on performance within the NGO population in Ethiopia. It responds to important research gaps with regard to the extent to which professional worldwide PM standards are achieved in developing scenarios.

Methodology: A concurrent mixed-methods study was adopted to leverage the strengths of both qualitative and quantitative approaches. A cross-sectional survey was conducted among 724 professionals in project management in 358 NGOs. The survey instrument assessed the relative usage of 63 project management practices in ten knowledge areas defined in the project management body of knowledge (PMBOK). Organizational performance was also tested on nine distinct parameters. Quantitative data were analyzed using a combination of descriptive statistics, ANOVA, correlation, and hierarchical regression analysis. The qualitative parameters were analyzed using thematic analysis.

Results: The industry has moderate overall adoption of PM (M=3.42), with huge variations. Foundation practices (Schedule, Scope, Integration Management) are commonly adopted (M>3.68), while strategic practices (Risk, Stakeholder, Procurement Management) are seldom adopted (M<2.95). International NGOs outpace local NGOs in terms of PM adoption with significant differences (p<.01). Overall PM adoption accounts for 34.5% variation in performance ratings (β=.587, p<.001), with Integration Management and Stakeholder Management having largest performance relationships at r=.62 & r=.58, in spite of low adoption.

Originality/Value: This research is the first to undertake an across-the-board assessment of the Project Management competency of Ethiopian NGOs and offers rigorous empirical proof of the relationship between Project Management performance and Project Management capability. It reveals a “high impact, low adoption paradox,” whereby a set of practices with a high impact on performance are least practiced.

Implications for Practice: NGO executives must emphasize good Project Management, especially the Integration and Stakeholder Management components. Funding agencies must reform financing mechanisms to enable capacity building. Capacity developers must design capacity-building training programs tailored to the context, emphasizing relational and adaptive capacities.

Keywords: Project Management, NGO Performance, Ethiopia, Capacity Building, Development Effectiveness, Stakeholder Management, Institutional Theory

1. Introduction

Non-Governmental Organizations (NGOs) remain a critical dimension of the development landscape in Ethiopia, implementing projects in key sectors such as health, education, agricultural production, and relief efforts. The registered number of over 3,500 organizations, managing large development resources, calls for their ability to operate effectively, as their efforts have a direct implication on a nation’s development success and the welfare of their millions-strong beneficiaries (Hailu, 2016). The challenge posed by project time and budget overrun failures, among others, remains a critical question on their management ability over a challenging or dynamic environment.

Project Management (PM) has recently appeared in the international agenda with the aim of improving predictability, efficiency, and success in project objectives. There are defined Project Management Bodies of Knowledge such as PMBOK Guide, which provide universally acknowledged methodologies and practices in this field (PMI, 2017). However, applying these ‘universal’ best practices in the context of resource-constrained environments, dependency, and uncertainty in Ethiopian NGOs, despite their sensitivity and politically challenging environments, is both theoretically controversial and empirically investigated in greater depth (Diallo & Thuillier, 2005). There appears to be a contradictory state between the need for management and that it might hinder local innovation and environment-related developments in developing countries like Ethiopia, which could hamper local adaptability and developments in these environments, as mentioned in Mansuri and Rao (2012).

Research that has been done on PM in the case of the Ethiopian setting has generally involved a set of disconnected case studies focusing on a firm, industry, or organizational level (e.g., Abenezer, 2023; Yanet, 2023). Though good in the sense that they offer a detailed examination of a specific firm or industry, these pieces of research do not have the strength or theory basis to make a diagnosis at the industry level or determine causality. As a result, much remains unknown, making decision-making problematic. This paper proposes to fill this void in the literature by addressing two major research objectives: (1) to conduct a diagnostic assessment of the adoption of PM practices in the various NGOs operating in Ethiopia, and (2) to conduct an empirical examination of the link between adoption levels of the aforementioned practices and organizational performance. Employing a large-scale and multi-modal methodology aligned with traditional organizational theory, this paper will attempt to shift away from the anecdotal paradigm and provide valuable insights to the critical sector that lie beyond the easy answers found in a handful of case studies.

2. LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT

2.1 Project Management in Development Contexts

PM in development NGOs is different in essence from PM in business environments. Development projects are neither merely technical in nature nor strictly follow the “iron triangle” paradigm of PM, which focuses solely on cost, time, and scope. Instead, development projects involve “social-political undertones and multiple accountabilities to donors who demand compliance and performance, to clients who demand relevance and empowerment, to governments who demand alignment with their policies, and to organizational values” (Crawford & Bryce, 2003). In other words, measurement of development projects is not solely dependent on the iron triangle paradigm of PM; instead, other factors like beneficiary satisfaction, sustainability, capacity development, and overall influence on policies are to be taken into consideration as well (Bojan, 2013; Ika et al., 2012).

2.2 Adoption of PM Practices in Developing Countries

Analyzing the adoption of formal project management standards in developing countries, especially in Africa, indicates a phenomenon of selective and symbolic adoption. Analysis of the Eastern African context indicates that while NGOs are competent in basic project management tasks such as project planning and control and project monitoring that are easily verified by donor agencies their incompetence in strategic aspects of project management such as proactive risk management and learning-oriented stakeholder management is evident (Samuel et al., 2018; Watema & Tulirinya, 2021). In the Ethiopian context, although the literature tends to resemble the same pattern and consists mainly of postgraduate studies (for example, Frehiwot, 2019; Solomon, 2022), there seems to be a lack of a broader and comprehensive outlook.

2.3 Theoretical Framework and Hypotheses

To uncover the adoption dynamics and possible impact of PM, this research combines two distinct theoretical frameworks that complement each other: the Resource-Based View Theory (RBV) and Institutional Theory. In relation to the RBV theory, the gaining of competitive advantage via the creation and exploitation of valuable, rare, and nonlinearly imitable resource circumstances has been proposed by Barney (1991). Transferring the theory to the nonprofit realm, we may surmise that the systematic PM capability to coordinate, effect, audit, and learn from projects, using a structured set of standardized project management practices, works to gain a strategic resource. Such a capability would necessarily make a firm more effective by facilitating coordination, risk, homeostasis, and quality, thus stating our first hypothesis: H1: There is a positive relationship between the overall level of PM practice adoption and the performance of the Ethiopian NGOs.

Institutional Theory explains how and why a practice is adopted. Organizations are embedded in a field of institutional forces that shape organizational characteristics (DiMaggio & Powell, 1983). NGOs are subjected to coercive isomorphic pressures driven by contracts with donors and governments, normative isomorphic pressures driven by professional project management standards and education institutions, and mimetic isomorphic pressures to align with “the successful others.” These isomorphic forces can create an “isomorphic bunching toward uniformity.” However, the adoption of a practice might be “ceremonial,” in the sense that it is not actually adopted in its substance but is solely adopted to create an impression of adoption (Meyer & Rowan, 1977). Theoretically, it is hypothesized that the adoption of practices will not be uniform, tending instead to emphasize those practices that are most visible to external actors (like detailed plans and reports) than those that are less visible (like stakeholder engagement): H2: Strategic Project Management practices such as Integration and Stakeholder Management are expected to have stronger correlations than the basic control-oriented practices, namely Schedule Management and Scope Management.

3. Materials and Methods

3.1 Research Design and Setting

This study uses a concurrent mixed-method design as outlined by Creswell and Plano Clark (2017). It was carried out in NGOs based in Addis Ababa, Ethiopia in June 2023 to November 2025. Addis Ababa hosts the operation centers of all but a few international NGOs operating in Ethiopia. Addis Ababa also serves as the main operating environment for all but a few national NGOs operating in Ethiopia.

3.2 Population and Sampling

The population targeted was project management professionals, which comprised project managers, coordinators, officers, and other personnel involved in Monitoring and Evaluation in registered NGOs. The stratified proportional sampling approach was used in this study with a sampling frame that consisted of the list of registered organizations by the Authority for Civil Society Organizations. The NGO population was stratified in three stratums:

• International NGOs (INGOs): 462 organizations
• Local NGOs (LNGOs): 3,040 organizations
• NGO Consortia: 50 organizations

A proportional sample size of 358 organizations was computed and then randomly selected, consisting of 47 INGOs, 311 LNGOs, and 4 Consortia. Two qualified respondents were purposively selected from each selected organization based on their direct involvement in project management, resulting in a final sample of 724 individual respondents. The sample size exceeds the cut-off point of 384 required by the Krejcie & Morgan (1970) formula for the estimation of sample size for a population of 3,500 at the desired 95% confidence level with 5% margin of error.

3.3 Data Collection Instruments and Measures

Data Collection

The structured questionnaire was framed using the ten knowledge areas identified in the PMBOK Guide publication (6th Edition, published by PMI, 2017) and tested on 30 respondents before submission for evaluation to experts in both academic and practical environments. The key constructs were identified in the following manner:

• PM Practices Adoption: The use of the 63 PM practices was measured using a 5-point Likert scale (1= “Not used at all” to 5= “Used consistently”). The twelve PMBOK knowledge areas: Integration, Scope, Schedule, Cost, Quality, Resource, Communication, Risk, Procurement, and finally Stakeholder Management, were used. A total score of PM practice use was calculated.
• Organizational Performance: It was a 9-item scale, and it gauged perceived performance on several fronts that are important to NGOs: responsiveness, budget compliance, quality of production, fulfillment of purpose, responsiveness to beneficiary need, impact, sustainability, beneficiary satisfaction, and organizational learning (1=”Strongly Disagree” to 5=”Strongly Agree”). The performance score was determined by a combination score.

The measure had strong internal validity because Cronbach alpha for the PM practices scale was very high at 0.92, and for the performance scale, it was also very high at 0.89.

3.4 Data Analysis

The quantitative data was analyzed by SPSS software version 25. The analytical techniques involved:

• Descriptive statistics (frequencies, means, standard deviations) to characterize the sample and describe the levels of adoption.
• One-way ANOVA with Post-hoc Tukey tests to compare the adoption scores of different types of NGOs: INGOs, LNGOs, and Consortia.
• Pearson correlation test to determine the relationship between each PM knowledge dimension and the overall performance.
• Hierarchical regression analysis to validate H1 by dividing the model into two blocks: Block 1 for the controls (type of NGO, sectors involved, Respondent’s Experience); in Block 2, the Total PM Adoption Score would be introduced.

The data collected using open-ended questions in the study was analyzed using thematic analysis method, which followed the six-step process described in Braun & Clarke (2006) that includes: familiarization, generation of codes, theme search, review, definition, and reporting.

 3.5 Ethical Considerations

The study got approval from the Institutional Review Board, Guru Kashi University. The study was based on informed consent. All these pieces of information were anonymized, and privacy was also kept confidential. The respondents were also made aware that they had a right to withdraw at any time without any penalties.

4. RESULTS

4.1 Sample Characteristics

The demographic and organizational profile of the 724 respondents is presented in Table 1. The sample reflects the composition of Ethiopia’s NGO sector, with local NGOs constituting the majority (85.9%). Respondents were engaged across key development sectors, with Livelihoods & Food Security being the most common. Most held mid-level implementation roles (Project Officers and Coordinators) and possessed substantial field experience, though formal PM certification was rare (14.9%).

Table 1:  Demographic and Organizational Profile (N=724)

Characteristic	Category	Frequency	Percentage
NGO Type	International NGO (INGO)	94	13.0%
	Local NGO (LNGO)	622	85.9%
	Consortium	8	1.1%
Primary Sector	Livelihoods & Food Security	203	28.0%
	Health	159	22.0%
	Education	145	20.0%
	Environment/WASH	116	16.0%
	Gender/Women Empowerment	72	9.9%
	Other	29	4.0%
Position	Project Officer	253	35.0%
	Coordinator	203	28.0%
	Project Manager	145	20.0%
	M&E Officer	101	14.0%
	Other	22	3.0%
Years of Experience	3-5 years	290	40.1%
	6-10 years	217	30.0%
	>10 years	217	30.0%
PM Certification	Yes	108	14.9%
	No	616	85.1%

Source: (Survey Questionnaire, 2025)

4.2 The State of PM Practice Adoption
The overall mean adoption score across all practices was 3.42 (SD=0.89), indicating a moderate level of use. However, as detailed in Table 2, adoption varied dramatically across knowledge areas, revealing a distinct hierarchy.

Table 2: Adoption of PM Practices by Knowledge Area

Rank	Knowledge Area	Mean (M)	SD	Interpretation
1	Schedule Management	3.85	0.78	Frequently Used
2	Scope Management	3.71	0.82	Frequently Used
3	Integration Management	3.68	0.85	Frequently Used
4	Cost Management	3.55	0.91	Sometimes Used
5	Quality Management	3.42	0.88	Sometimes Used
6	Communication Management	3.38	0.93	Sometimes Used
7	Resource Management	3.21	0.95	Sometimes Used
8	Procurement Management	2.95	1.02	Rarely Used
9	Stakeholder Management	2.88	1.05	Rarely Used
10	Risk Management	2.76	1.10	Rarely Used
	Overall	3.42	0.89	Moderate Adoption

Source: (Survey Questionnaire, 2025)

Interpretation: 1.00-1.79 (Not Used); 1.80-2.59 (Rarely Used); 2.60-3.39 (Sometimes Used); 3.40-4.19 (Frequently Used); 4.20-5.00 (Consistently Used)

This pattern reveals what we term the “Efficiency-Impact Paradox.” Ethiopian NGOs are relatively proficient in foundational, control-oriented practices that ensure basic task efficiency and donor accountability (Schedule, Scope, Integration) but are critically weak in strategic, proactive practices essential for managing uncertainty, building partnerships, and ensuring sustainable impact (Risk, Stakeholder, Procurement).

4.3 Variations by Organizational Type
One-way ANOVA revealed significant differences in overall PM adoption by NGO type (F(2,721) = 19.45, p < .001). Post-hoc Tukey tests indicated that:

• Consortia had the highest adoption level (M = 3.81, SD = 0.76).
• INGOs followed (M = 3.65, SD = 0.81).
• LNGOs had significantly lower adoption (M = 3.36, SD = 0.89) than both Consortia (p < .01) and INGOs (p < .01).

No significant differences were found across operational sectors (p > .05), suggesting that PM challenges are pervasive across thematic areas.

4.4 PM Adoption and Organizational Performance

4.4.1 Correlation Analysis
All ten PM knowledge areas showed statistically significant positive correlations with the overall organizational performance score (p < .01), providing preliminary support for H1. The strength of these relationships, however, varied considerably (Table 3).

Table 3: Correlations Between PM Knowledge Areas and Performance

Knowledge Area	Pearson’s r	p-value	Strength
Integration Management	.62	<.001	Strong
Stakeholder Management	.58	<.001	Strong
Scope Management	.59	<.001	Strong
Schedule Management	.57	<.001	Strong
Communication Management	.56	<.001	Moderate
Cost Management	.55	<.001	Moderate
Quality Management	.53	<.001	Moderate
Resource Management	.52	<.001	Moderate
Risk Management	.48	<.001	Moderate
Procurement Management	.45	<.001	Moderate

Source: (Survey Questionnaire, 2025)

This pattern provides clear support for H2. Strategic practices notably Integration Management (r = .62) and Stakeholder Management (r = .58) demonstrated the strongest associations with performance, despite their moderate-to-low adoption rates. This underscores a critical “high-impact, low-adoption paradox” within the sector.

4.4.2 Regression Analysis
Hierarchical multiple regression was conducted to test H1 while controlling for organizational characteristics (Table 4). Model 1, containing only control variables (NGO type, sector, respondent experience), explained 8% of the variance in performance (R² = .080). Model 2 introduced the overall PM adoption score, resulting in a significant increase in explanatory power (ΔR² = .265, p < .001).

Table 4: Hierarchical Regression Predicting Performance from PM Adoption

Predictor	Model 1 (Controls)		Model 2 (Full Model)
	B (SE)	β	B (SE)	Β
Constant	3.12 (0.15)**		1.25 (0.12)**
NGO Type (Ref: LNGO)
– INGO	0.18 (0.06)*	.11	0.07 (0.05)	.04
– Consortium	0.31 (0.10)*	.10	0.15 (0.08)	.05
Respondent Experience	0.05 (0.02)*	.09	0.02 (0.01)	.03
Overall PM Score			0.65 (0.03)**	.587
R²	.080		.345
Adjusted R²	.076		.341
ΔR²			.265**
F for ΔR²	10.45*		380.47***
***p<.001, p<.01, p<.05

Source: (Survey Questionnaire, 2025)

The final model explained 34.5% of the variance in organizational performance. The PM adoption score was the strongest predictor (β = .587, p < .001), providing robust support for H1. The effect of NGO type became non-significant after controlling for PM adoption, suggesting that performance differences between INGOs and LNGOs are largely attributable to disparities in management capabilities.

4.5 Qualitative Analysis of Project Management Practices in Ethiopian NGOs

Unpacking the Efficiency–Impact Paradox

This section integrates insights from the qualitative data with the quantitative findings presented earlier, with the aim of explaining why certain project management practices remain underutilized despite their strong association with organizational performance. The analysis is informed primarily by Resource Dependence Theory and draws on open-ended responses and interview narratives provided by participants across different organizational types.

4.5.1 The Institutionalization of Project Management as a Compliance Architecture

Divergent Pathways of Institutionalization

The qualitative data reveal clear differences in how project management practices are institutionalized across Ethiopian NGOs, differences that closely mirror organizations’ positions within donor and resource dependency structures. Among international NGOs and well resourced Addis Ababa based organizations, project management is highly formalized. Respondents described the existence of dedicated project management offices, standardized templates, and mandatory software systems. As one senior director explained:

“We have a PMO, standardized templates across departments, and mandatory use of MS Project. Every project follows the same lifecycle from initiation to closure.”

While these systems undoubtedly support coordination and reporting, respondents consistently emphasized their role in meeting donor expectations. In this context, formalization serves not only operational purposes but also functions as a mechanism for demonstrating professionalism and legitimacy. This interpretation aligns with the quantitative finding that international NGOs exhibit significantly higher PM adoption scores than local NGOs. By contrast, respondents from regional and rural NGOs described a far more improvised approach to project management. Rather than formal systems, PM was often embedded in individual experience and informal routines. A program manager from Amhara noted:

“Our PM system is basically the experience of our coordinator and a shared Google Drive that only works when we are in town.”

Here, flexibility and improvisation were not strategic choices but practical responses to resource constraints. Institutionalization, where it existed, was oriented toward organizational survival rather than compliance or professionalization.

4.5.2 A Hierarchy of Practices Driven by Donor Visibility

The qualitative findings help explain the adoption hierarchy observed in the quantitative analysis. Practices associated with the “iron triangle” of project management schedule, scope, and integration were consistently described as non-negotiable because of their visibility to donors.

Respondents emphasized that timelines and predefined outputs were closely monitored and directly linked to continued funding. As one project officer stated:

“A delayed report means delayed funds. We track every activity because staff salaries depend on it.”

Similarly, adherence to approved project scopes was framed as essential, even when local conditions changed. Several respondents described situations in which adapting activities to emerging community needs was discouraged because deviations complicated reporting and approval processes. In contrast, practices related to stakeholder engagement, risk management, and adaptive learning were widely regarded as important but difficult to sustain. One NGO director summarized this tension succinctly:

“The community is consulted during proposal writing, then becomes beneficiaries during implementation. Real partnership takes time, and time is not funded.”

These practices require relational investment and ongoing negotiation activities that are less visible in formal reports and therefore less rewarded within prevailing accountability frameworks.

4.5.3 Competing Definitions of Success

A recurring theme across interviews was the existence of two parallel definitions of project success. The first, described by many respondents as the “official” definition, was closely aligned with donor expectations and centered on compliance, timely delivery, and clean audits. As one executive director noted:

“Success is finishing on time, delivering outputs, and passing the audit. That’s what gets you the next grant.”

The second definition, which respondents often referred to as “real success,” emphasized sustainability, community ownership, and long-term impact. These outcomes, however, were rarely captured in formal performance metrics or funding decisions. This disconnect helps explain why strategic PM practices despite their strong correlation with performance in the quantitative analysis remain underutilized in practice.

4.5.4 Project Management Capability and Organizational Vulnerability

Several respondents highlighted how weak institutionalization of PM practices increased organizational vulnerability, particularly in local NGOs. High staff turnover, limited documentation, and person-dependent systems were frequently cited as sources of risk. One regional NGO manager reflected:

“When our coordinator left for an INGO, we lost the procurement records and monitoring data. The donor suspended funding, and the project collapsed.”

These accounts illustrate a capacity trap in which limited resources prevent investment in systems, and the absence of systems then reinforces perceptions of weak capacity among donors. At the same time, examples from better-resourced organizations demonstrated how strong PM capability could function as a strategic asset. In some cases, rigorous PM systems whether implemented substantively or ceremonially helped organizations secure additional funding and longer-term partnerships. This finding reinforces the quantitative result that overall PM adoption is a strong predictor of organizational performance.

4.5.5 Synthesis: Explaining the Efficiency–Impact Paradox

Taken together, the qualitative findings suggest that the efficiency impact paradox is not the result of managerial incompetence, but rather a rational organizational response to structural incentives. Project management systems have evolved primarily as compliance architectures designed to satisfy donor requirements, often at the expense of relational and adaptive practices that are more closely linked to sustainable impact.

The adoption hierarchy observed in the quantitative analysis reflects this reality. Practices that enhance visibility and control are prioritized, while those that require flexibility, negotiation, and long-term engagement remain marginal. The resulting pattern mirrors broader inequalities within the aid system, where international organizations and consortia are better positioned to invest in PM capabilities than local NGOs.

Ultimately, the qualitative evidence reinforces the central argument of this study: improving project management practice in Ethiopian NGOs requires not only technical training, but also changes in funding structures and accountability relationships. Without such changes, the gap between what improves performance and what is routinely practiced is likely to persist.

5. DISCUSSION

5.1 Interpreting the Efficiency-Impact Paradox

The results show that the industry practices “selective institutional isomorphism.” NGOs in Ethiopia have taken on the practices of the PM that provide immediate legitimacy and address the most visible requirements from donors, mainly the management aspects connected to planning and control (Schedule, Scope Management). There is the “efficiency façade” (Meyer & Rowan, 1977), where the organizations show effectiveness with common indicators, yet they lack effectiveness with regard to strategic integration, risk, and relations with the environment.

The relative performance disparity between the INGOs/Consortia and the LNGOs illustrates the inequities within the development environment. The INGOs occupy a strategic position in the global knowledge environment, enjoying training resources and frequently acting as the catalyst, and the practices that the LNGOs see themselves forced to emulate. It is clear that network access to resources and knowledge is a more powerful stimulus of PM competence than sector or mission.

5.2 The PM-Performance Nexus and the Strategic Imperative

The positive and strong relationship between PM adoption and performance indicates an impressive return on investments made in PM capabilities, as the variable explains 34.5% of the variation. This negates the argument surrounding PM as bureaucratic overhead in development.

 Interestingly, the test indicates a higher value for the beta coefficient than the standardized value for the relationship between PM adoption and performance

The major finding, however, is the “high-impact, low adoption paradox.” The practices that are most strongly associated with success are also the least adopted. The significant relationship of Integration Management (.62) to performance again emphasizes the fact that development projects are complex systems where the key to success lies in integrating all elements towards the same goal. The important function of Stakeholder Management (.58) again reiterates the fact that development is all about relationships because the only way to succeed is to shift from consultation to partnership.

This paradox suggests an underlying market failure with regard to the industry of capacity-building. Training and donor focus have conventionally targeted and emphasized easily quantifiable capabilities related to tool usage, such as the creation of a work breakdown structure, and have neglected the complex skills necessary for uncertainty and trust-building.

 5.3 Theoretical Contributions

This research makes the following contributions: This study makes the following contributions to:

• Empirically Extending Institutional THEORY IN CONTEXT, illustrating how coercive (donor), normative (professional), and mimetic (peer) pressures result in a decoupled, ceremonial rationalizing of practices, yielding the efficiency-impact paradox.
• Validating the RBV in a Nonprofit Context, offering empirical proof that PM capability is an valuable, performance-enhancing resource.
• Specifically, capability is found to be more important than organization type in delivering results.
• Crafting a Construction of Success in Development Projects: Empirical Validation of the Need to Go Beyond the “Iron Triangle” by Incorporating Relational and Strategic Dimensions.

5.4 Practical Implications and Recommendations

To NGO Leaders

• Perform Strategic PM Audits: Beyond compliance checks, employ the likes of the PMBOK guide to make a strength and critical gap diagnosis in the areas of Integration, Stakeholder, and Risk Management.
• Relational and Adaptive Capabilities, as well as Investments: Prioritize training investments in facilitation, systems thinking, negotiation, and adaptive leadership, besides technological abilities.
• Build Institutional Knowledge: Establish knowledge management systems like project review processes with online repositories to counter lost knowledge due to personnel turnover.

For Donor Agencies

• Funding Models: Move funding models for discrete projects to invest in overall enterprise structure. Allocate specific budgets within this for development and training.
• Incentivize Strategic Practices: Adjust reporting and proposal requirements to encourage and reward effective risk management planning, stakeholder engagement, and learning processes.
• Support Context-Adapted Standards: Engage with NGOs to write simpler guidelines on PM tailored for the Ethiopian context, focusing on strategic practices that have high impact.

For Capacity Development Providers

• More Than Generic PMP Training: These certifications and training sessions should be developed and designed specifically for the NGOs working in a volatile environment and should include topics like: “Adaptive Management for Development.” “Community-Centered Stakeholder Engagement
• Encourage Peer Learning Networks: Establish a community where employees of NGOs could share difficulties and solutions related to a strategy execution approach called Strategic PM.
• Embedding Help: Embed learning enablement, consulting, mentoring, and coaching in order to help in creating new habits in the organization, which is a challenging task.

6. LIMITATIONS & FUTURE RESEARCH

Further, the results of the research have some limitations that open up several avenues for future research. First, the findings based on the cross-sectional method provide correlations but do not determine causality in any significant manner. Therefore, longitudinal approaches focusing on the development of PM usage and performance over a period of time would prove useful. Second, although the research has used standardized scales, the use of self-report data regarding performance can be a limitation. In this respect, the use of objective data related to project assessments, auditing, and benefit tracer studies would prove effective. Third, the findings may not provide a complete representation regarding the application of PM at the field level. Therefore, the views of staff members working at the field level, along with those related to Community-Based Organizations, would prove essential. Finally, the research has used the PMBOK technique. Further comparative research related to the applicability of other methodologies, like PRINCE2, Agile, and Outcome Mapping, would prove effective.

7. CONCLUSION

This research represents the first full, evidence-based diagnosis on Project Management competence among NGOs in the Ethiopian sector. Emerging data presents a sector standing at a crossroads: passably proficient in “the nuts and bolts of project execution” but confronted by a strategic need to improve competency levels in those practices that are most important to sustainable outcomes, including, integration, engagement, and risk.

But the close relationship between PM adoption and performance communicates an overwhelmingly positive message: strategic investment in managerial capacity is rewarded. Yet the current state of the “high impact, low adoption paradox” suggests that this is because the current strategy of capacity development and donor engagement is counterproductive to the results.

To meet the paradox requires a system-wide approach. NGO leaders must promote strategic PM as a core organizational strength, rather than a compliance requirement. Funders must facilitate the transition by improving the structure of funding to enable organizational development. Capacity builders must direct smart assistance to enhance relational and adaptive strength.

At the end of it all, for Ethiopian NGOs to evolve from skilled implementers of donor projects to competent change agents, there is a call to adopt the strategic disciplines that have emerged as a consequence of this research. The way forward is evident: gap closure between what is practiced and what performs.

Acknowledgments: The researchers are very much thankful to Guru Kashi University for their support to this research work and to the Association of Ethiopian NGOs, as well as to all the NGOs and individuals who contributed to this study.

Funding: This research does not have funding from any funding agencies in the public, commercial, or not-for-profit sectors.

Conflict of Interest: The authors have declared that there is no conflict of interest.

Availability of Data: Data Availability Statement: The data which support the findings of this study are available from the corresponding author on reasonable request.

Ethical Approval: This study was cleared by the Institutional Review Board, Guru Kashi University (Ref. No: GKU/IRB/2024/PM-01).

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