As the external organizational environment continue to be turbulent,affecting activities for both profit and non-profit organizations, organizationsare becoming more concerned with their performance so as to ensure that theavailable but limited resources are utilized efficiently and effectively. Overtime, attention has been focused on profit-making organizations with littleemphasis on performance of community-based organizations (CBOs)especially those located in Sub-Saharan Africa. Theoretically, scholars inmanagement discipline indicate that the external environment of anorganization influences its performance. Thus, an organization’s level ofperformance is dependent on dynamism and complexity of the externalenvironment, heterogeneity as well as capacity and domain consensus of theexisting organizations. This paper examines the impact of the externalorganizational environment on performance of community-based HIV andAIDS organizations in Nairobi County, Kenya. The authors empiricallyassess the predicted relationship using survey data from 163 CommunityBased HIV and AIDS Organizations, in Nairobi County, Kenya betweenJanuary and March 2013. The study findings indicate that the externalenvironment of an organization has an impact on an organization’seffectiveness, efficiency, relevance and financial viability with higherimpacts on the relevance performance indicators. External environment wasevaluated from dimensions of uncertainty, domain consensus, heterogeneity,capacity and dynamism. The findings of this study indicate statisticallysignificant positive relationship between external environment and CBOsexternal environment and effectiveness

changes in competition and capital flows
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