Adaptive Leadership and Financial Sustainability Among Non-Governmental Organizations in Tanzania: A Review of Literature

Tumaini Abel Majaliwa

doi:doi:10.11648/j.sjbm.20261404.13

Research Article |

| Peer-Reviewed

Adaptive Leadership and Financial Sustainability Among Non-Governmental Organizations in Tanzania: A Review of Literature

Tumaini Abel Majaliwa^*

Published in Science Journal of Business and Management (Volume 14, Issue 4)

Received: 18 September 2026 Accepted: 4 October 2026 Published: 28 October 2026

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

Financial sustainability remains a persistent challenge for Non-Governmental Organizations (NGOs) which are in the nonprofit sector, particularly in developing countries where donor dependency, funding uncertainty, changing stakeholder expectations, and increasing accountability demands constrain long-term organizational viability. While adaptive leadership has attracted growing scholarly attention as a leadership approach for addressing complexity and change, limited research has examined its role in promoting financial sustainability within nonprofit organizations. Furthermore, existing studies have paid insufficient attention to the mechanisms through which adaptive leadership contributes to sustainability outcomes. This study reviews conceptual, theoretical, and empirical literature to examine the relationship between adaptive leadership and financial sustainability among NGOs and to identify the phenomenon emerging from the deployment of adaptive leadership within nonprofit organizations. The review reveals that adaptive leadership contributes to the development of critical organizational capabilities, including resource mobilization capability, stakeholder trust, donor confidence, organizational agility, and organizational resilience. Among these capabilities, resource mobilization capability emerges as the most significant mechanism linking adaptive leadership to financial sustainability. The review further suggests that adaptive organizational culture, characterized by learning, innovation, collaboration, and flexibility, plays an important moderating role in strengthening the effectiveness of adaptive leadership. Drawing upon Adaptive Leadership Theory, Resource Dependence Theory, Stakeholder Theory, Dynamic Capabilities Theory, and Organizational Resilience Theory, the study proposes a theoretical model linking adaptive leadership, resource mobilization capability, adaptive organizational culture, and financial sustainability. The paper contributes to nonprofit leadership scholarship by extending adaptive leadership theory into the domain of nonprofit financial sustainability and providing a conceptual framework for future empirical investigation. The proposed model offers a foundation for understanding how leadership can enhance the long-term sustainability of NGOs operating in increasingly dynamic and uncertain environments.

Published in	Science Journal of Business and Management (Volume 14, Issue 4)
DOI	10.11648/j.sjbm.20261404.13
Page(s)	173-189
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2026. Published by Science Publishing Group

Keywords

Adaptive Leadership, Financial Sustainability, Resource Mobilization Capability, Organizational Culture, Organizational Resilience, NGOs

References

[1]	Ajuwon, O. A., & Dagunduro, A. O. (2024). Strategic leadership and management within non-profit organizations: An in-depth review of practices contributing to sustainable impact. International Journal of Frontline Research in Science and Technology, 4(1), 1-17.
[2]	Ali, A. J., Al-Aali, A. Y., & Al-Owaihan, A. (2017). Leadership and innovation in organizations: The role of collaboration. International Journal of Organizational Analysis, 25(5), 789-804.
[3]	Amabile, T. M., & Pratt, M. G. (2016). The dynamic componential model of creativity and innovation in organizations. Research in Organizational Behavior, 36, 157-183.
[4]	Angana, G. A., & Chiroma, J. (2021). Collaborative leadership and its influence in building and sustaining successful cross-functional relationships in organizations. IOSR Journal of Business and Management, 23(8), 18-26.
[5]	Avolio, B. J., Zhu, W., Koh, W., & Bhatia, P. (2004). Transformational leadership and organizational commitment: Mediating role of psychological empowerment and moderating role of structural distance. Journal of Organizational Behavior, 25(8), 951-968.
[6]	Ayuso, S., & Argandoña, A. (2007). Responsible corporate governance: Towards a stakeholder board of directors? University of Navarra Working Paper No. 701.
[7]	Barbaroux, P. (2012). Identifying collaborative innovation capabilities within knowledge-intensive environments. European Journal of Innovation Management, 15(2), 232-258.
[8]	Bierly, P. E., Damanpour, F., & Santoro, M. D. (2009). The application of external knowledge: Organizational conditions for exploration and exploitation. Journal of Management Studies, 46(3), 481-509.
[9]	Bolden, R. (2011). The elusive nature of leadership practice. University of Exeter.
[10]	Bowman, W. (2011). Financial capacity and sustainability of ordinary nonprofits. Nonprofit Management and Leadership, 22(1), 37-51.
[11]	Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77-101.
[12]	Carroll, D. A., & Stater, K. J. (2009). Revenue diversification in nonprofit organizations: Does it lead to financial stability? Journal of Public Administration Research and Theory, 19(4), 947-966.
[13]	Cartwright, S., & Baron, H. (2002). Culture and organizational effectiveness. In I. Robertson, M. Callinan, & D. Bartram (Eds.), Organizational effectiveness: The role of psychology (pp. 181-200). Wiley.
[14]	Chen, G., Sharma, P. N., Edinger, S. K., Shapiro, D. L., & Farh, J. L. (2011). Motivating and demotivating forces in teams. Journal of Applied Psychology, 96(3), 541-557.
[15]	Chen, J., Silverthorne, C., & Hung, J. (2006). Organization communication, job stress, organizational commitment, and job performance. Leadership & Organization Development Journal, 27(4), 242-249.
[16]	Church, A. H. (1995). Linking leadership behaviours to service performance. Managing Service Quality, 5(6), 26-31.
[17]	Cordery, C. J., & Sinclair, R. (2013). Measuring performance in the third sector. Qualitative Research in Accounting & Management, 10(3-4), 196-212.
[18]	Creswell, J. W., & Poth, C. N. (2018). Qualitative inquiry and research design (4th ed.). Sage.
[19]	Crosby, B. C., & Bryson, J. M. (2010). Integrative leadership and the creation of cross-sector collaborations. The Leadership Quarterly, 21(2), 211-230.
[20]	Davis, J. P., & Eisenhardt, K. M. (2012). Rotating leadership and collaborative innovation. Administrative Science Quarterly, 56(2), 159-201.
[21]	Denti, L., & Hemlin, S. (2012). Leadership and innovation in organizations. International Journal of Innovation Management, 16(3), 1-20.
[22]	Duchek, S. (2020). Organizational resilience: A capability-based conceptualization. Business Research, 13(1), 215-246.
[23]	Dunn, R. (2020). Adaptive leadership: Leading through complexity. International Studies in Educational Administration, 48(1), 31-38.
[24]	Ezekiel, K., & Massawe, P. (2024). Determinants of financial sustainability for local NGOs in Arusha, Tanzania. NG Journal of Social Development, 15(1), 1-18.
[25]	Felipe, C. M., Roldán, J. L., & Leal-Rodríguez, A. L. (2017). Impact of organizational culture values on organizational agility. Sustainability, 9(12), 2354.
[26]	Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman Publishing.
[27]	Froelich, K. A. (1999). Diversification of revenue strategies: Evolving resource dependence in nonprofit organizations. Nonprofit and Voluntary Sector Quarterly, 28(3), 246-268.
[28]	Garvin, D. A. (1993). Building a learning organization. Harvard Business Review, 71(4), 78-91.
[29]	Goleman, D. (1997). Emotional intelligence. Bantam Books.
[30]	Groysberg, B., Lee, J., Price, J., & Cheng, J. (2018). The culture factor. Harvard Business Review.
[31]	Harb, Y., Khabbaz, L., Azouri, M., & Estephan, S. (2026). Sustaining non-profit organizations: Strategic, managerial and financial perspectives. PLOS ONE, 21(1), 1-23.
[32]	Heifetz, R. A. (1994). Leadership without easy answers. Harvard University Press.
[33]	Heifetz, R., Grashow, A., & Linsky, M. (2009). The practice of adaptive leadership. Harvard Business Press.
[34]	Hurley, R. F., & Hult, G. T. M. (1998). Innovation, market orientation and organizational learning. Journal of Marketing, 62(3), 42-54.
[35]	Kazanskaia, E. (2025). Organizational adaptability and nonprofit sustainability. Journal of Nonprofit Strategy and Leadership, 8(2), 45-63.
[36]	Kenny, B., & Reedy, E. (2006). Organizational culture factors and innovation levels in SMEs. Irish Journal of Management, 27(2), 119-142.
[37]	Kock, N., Mayfield, M., Mayfield, J., Sexton, S., & De La Garza, L. M. (2019). Empathetic leadership. Journal of Leadership & Organizational Studies, 26(2), 217-236.
[38]	Kolb, D. (2021). Adaptive leadership: The case of Jacinda Ardern and New Zealand. Academia Letters, Article 557.
[39]	Lengnick-Hall, C. A., Beck, T. E., & Lengnick-Hall, M. L. (2011). Developing a capacity for organizational resilience. Human Resource Management Review, 21(3), 243-255.
[40]	Lecy, J. D., Schmitz, H. P., & Swedlund, H. (2012). Non-governmental and nonprofit organizations in an age of uncertainty. Voluntas, 23(1), 184-205.
[41]	Lewis, D. (2014). Non-governmental organizations, management and development (3rd ed.). Routledge.
[42]	Mahsud, R., Yukl, G., & Prussia, G. (2010). Leader empathy and leadership effectiveness. Journal of Managerial Psychology, 25(6), 561-577.
[43]	Maira, V. (2025). The impact of financial control on financial sustainability of NGOs in Dar es Salaam. Accountancy and Business Review, 17(1), 118-133.
[44]	Makri, M., & Scandura, T. A. (2010). Exploring the effects of creative CEO leadership on innovation. The Leadership Quarterly, 21(1), 75-88.
[45]	Martins, E. C., & Terblanche, F. (2003). Building organizational culture that stimulates creativity and innovation. European Journal of Innovation Management, 6(1), 64-74.
[46]	Morse, R. S. (2010). Integrative public leadership. The Leadership Quarterly, 21(2), 231-245.
[47]	Mwasalwiba, E. S. (2015). The role of NGOs in development: Perspectives from Tanzania. International Journal of Humanities and Social Science, 5(9), 169-177.
[48]	Naranjo-Valencia, J. C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2016). Studying the links between organizational culture, innovation, and performance. Revista Latinoamericana de Psicología, 48(1), 30-41.
[49]	Nelson, T., & Squires, V. (2017). Addressing complex challenges through adaptive leadership. Journal of Leadership Education, 16(4), 111-123.
[50]	Northouse, P. G. (2022). Leadership: Theory and practice (9th ed.). Sage Publications.
[51]	Ojo, O. (2009). Leadership behaviour and organizational transformation. Analele Universitatii Bucuresti, 3, 185-199.
[52]	Pfeffer, J., & Salancik, G. R. (1978). The external control of organizations: A resource dependence perspective. Harper & Row.
[53]	Schein, E. H. (2010). Organizational culture and leadership (4th ed.). Jossey-Bass.
[54]	Schulze, J. H., & Pinkow, F. (2020). Leadership for organizational adaptability. Administrative Sciences, 10(37), 1-22.
[55]	Senge, P. M. (2006). The fifth discipline: The art and practice of the learning organization (Rev. ed.). Doubleday.
[56]	Sontag-Padilla, L., Staplefoote, L., & Morganti, K. G. (2012). Financial sustainability for nonprofit organizations. RAND Corporation.
[57]	Saunders, M., Lewis, P., & Thornhill, A. (2019). Research methods for business students (8th ed.). Pearson.
[58]	Teece, D. J. (2007). Explicating dynamic capabilities. Strategic Management Journal, 28(13), 1319-1350.
[59]	Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.
[60]	Uhl-Bien, M., & Arena, M. (2018). Leadership for organizational adaptability. The Leadership Quarterly, 29(1), 89-104.
[61]	Uhl-Bien, M., Marion, R., & McKelvey, B. (2007). Complexity leadership theory. The Leadership Quarterly, 18(4), 298-318.
[62]	Weerawardena, J., McDonald, R. E., & Mort, G. S. (2010). Sustainability of nonprofit organizations. Journal of World Business, 45(4), 346-356.
[63]	Wholey, J. S. (1996). Formative and summative evaluation: Related issues in performance measurement. American Journal of Evaluation, 17(2), 145-149.
[64]	Yukl, G. (2002). Leadership in organizations (5th ed.). Prentice Hall.
[65]	Yukl, G., & Mahsud, R. (2010). Why flexible and adaptive leadership is essential. Consulting Psychology Journal: Practice and Research, 62(2), 81-93.

Cite This Article

Plain Text BibTeX RIS

APA Style

Majaliwa, T. A. (2026). Adaptive Leadership and Financial Sustainability Among Non-Governmental Organizations in Tanzania: A Review of Literature. Science Journal of Business and Management, 14(4), 173-189. https://doi.org/10.11648/j.sjbm.20261404.13

Copy | Download

ACS Style

Majaliwa, T. A. Adaptive Leadership and Financial Sustainability Among Non-Governmental Organizations in Tanzania: A Review of Literature. Sci. J. Bus. Manag. 2026, 14(4), 173-189. doi: 10.11648/j.sjbm.20261404.13

Copy | Download

AMA Style

Majaliwa TA. Adaptive Leadership and Financial Sustainability Among Non-Governmental Organizations in Tanzania: A Review of Literature. Sci J Bus Manag. 2026;14(4):173-189. doi: 10.11648/j.sjbm.20261404.13

Copy | Download

@article{10.11648/j.sjbm.20261404.13,
  author = {Tumaini Abel Majaliwa},
  title = {Adaptive Leadership and Financial Sustainability Among Non-Governmental Organizations in Tanzania: A Review of Literature},
  journal = {Science Journal of Business and Management},
  volume = {14},
  number = {4},
  pages = {173-189},
  doi = {10.11648/j.sjbm.20261404.13},
  url = {https://doi.org/10.11648/j.sjbm.20261404.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20261404.13},
  abstract = {Financial sustainability remains a persistent challenge for Non-Governmental Organizations (NGOs) which are in the nonprofit sector, particularly in developing countries where donor dependency, funding uncertainty, changing stakeholder expectations, and increasing accountability demands constrain long-term organizational viability. While adaptive leadership has attracted growing scholarly attention as a leadership approach for addressing complexity and change, limited research has examined its role in promoting financial sustainability within nonprofit organizations. Furthermore, existing studies have paid insufficient attention to the mechanisms through which adaptive leadership contributes to sustainability outcomes. This study reviews conceptual, theoretical, and empirical literature to examine the relationship between adaptive leadership and financial sustainability among NGOs and to identify the phenomenon emerging from the deployment of adaptive leadership within nonprofit organizations. The review reveals that adaptive leadership contributes to the development of critical organizational capabilities, including resource mobilization capability, stakeholder trust, donor confidence, organizational agility, and organizational resilience. Among these capabilities, resource mobilization capability emerges as the most significant mechanism linking adaptive leadership to financial sustainability. The review further suggests that adaptive organizational culture, characterized by learning, innovation, collaboration, and flexibility, plays an important moderating role in strengthening the effectiveness of adaptive leadership. Drawing upon Adaptive Leadership Theory, Resource Dependence Theory, Stakeholder Theory, Dynamic Capabilities Theory, and Organizational Resilience Theory, the study proposes a theoretical model linking adaptive leadership, resource mobilization capability, adaptive organizational culture, and financial sustainability. The paper contributes to nonprofit leadership scholarship by extending adaptive leadership theory into the domain of nonprofit financial sustainability and providing a conceptual framework for future empirical investigation. The proposed model offers a foundation for understanding how leadership can enhance the long-term sustainability of NGOs operating in increasingly dynamic and uncertain environments.},
 year = {2026}
}

Copy | Download

TY  - JOUR
T1  - Adaptive Leadership and Financial Sustainability Among Non-Governmental Organizations in Tanzania: A Review of Literature
AU  - Tumaini Abel Majaliwa
Y1  - 2026/10/28
PY  - 2026
N1  - https://doi.org/10.11648/j.sjbm.20261404.13
DO  - 10.11648/j.sjbm.20261404.13
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 173
EP  - 189
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20261404.13
AB  - Financial sustainability remains a persistent challenge for Non-Governmental Organizations (NGOs) which are in the nonprofit sector, particularly in developing countries where donor dependency, funding uncertainty, changing stakeholder expectations, and increasing accountability demands constrain long-term organizational viability. While adaptive leadership has attracted growing scholarly attention as a leadership approach for addressing complexity and change, limited research has examined its role in promoting financial sustainability within nonprofit organizations. Furthermore, existing studies have paid insufficient attention to the mechanisms through which adaptive leadership contributes to sustainability outcomes. This study reviews conceptual, theoretical, and empirical literature to examine the relationship between adaptive leadership and financial sustainability among NGOs and to identify the phenomenon emerging from the deployment of adaptive leadership within nonprofit organizations. The review reveals that adaptive leadership contributes to the development of critical organizational capabilities, including resource mobilization capability, stakeholder trust, donor confidence, organizational agility, and organizational resilience. Among these capabilities, resource mobilization capability emerges as the most significant mechanism linking adaptive leadership to financial sustainability. The review further suggests that adaptive organizational culture, characterized by learning, innovation, collaboration, and flexibility, plays an important moderating role in strengthening the effectiveness of adaptive leadership. Drawing upon Adaptive Leadership Theory, Resource Dependence Theory, Stakeholder Theory, Dynamic Capabilities Theory, and Organizational Resilience Theory, the study proposes a theoretical model linking adaptive leadership, resource mobilization capability, adaptive organizational culture, and financial sustainability. The paper contributes to nonprofit leadership scholarship by extending adaptive leadership theory into the domain of nonprofit financial sustainability and providing a conceptual framework for future empirical investigation. The proposed model offers a foundation for understanding how leadership can enhance the long-term sustainability of NGOs operating in increasingly dynamic and uncertain environments.
VL  - 14
IS  - 4
ER  -

Copy | Download

Author Information

Tumaini Abel Majaliwa

Leadership Department, Pan Africa Christian University, Nairobi, Kenya

Contact Email

Download PDF

Submit an Article

Sections

Plain Text BibTeX RIS

APA Style

Majaliwa, T. A. (2026). Adaptive Leadership and Financial Sustainability Among Non-Governmental Organizations in Tanzania: A Review of Literature. Science Journal of Business and Management, 14(4), 173-189. https://doi.org/10.11648/j.sjbm.20261404.13

Copy | Download

ACS Style

Majaliwa, T. A. Adaptive Leadership and Financial Sustainability Among Non-Governmental Organizations in Tanzania: A Review of Literature. Sci. J. Bus. Manag. 2026, 14(4), 173-189. doi: 10.11648/j.sjbm.20261404.13

Copy | Download

AMA Style

Majaliwa TA. Adaptive Leadership and Financial Sustainability Among Non-Governmental Organizations in Tanzania: A Review of Literature. Sci J Bus Manag. 2026;14(4):173-189. doi: 10.11648/j.sjbm.20261404.13

Copy | Download

@article{10.11648/j.sjbm.20261404.13,
  author = {Tumaini Abel Majaliwa},
  title = {Adaptive Leadership and Financial Sustainability Among Non-Governmental Organizations in Tanzania: A Review of Literature},
  journal = {Science Journal of Business and Management},
  volume = {14},
  number = {4},
  pages = {173-189},
  doi = {10.11648/j.sjbm.20261404.13},
  url = {https://doi.org/10.11648/j.sjbm.20261404.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20261404.13},
  abstract = {Financial sustainability remains a persistent challenge for Non-Governmental Organizations (NGOs) which are in the nonprofit sector, particularly in developing countries where donor dependency, funding uncertainty, changing stakeholder expectations, and increasing accountability demands constrain long-term organizational viability. While adaptive leadership has attracted growing scholarly attention as a leadership approach for addressing complexity and change, limited research has examined its role in promoting financial sustainability within nonprofit organizations. Furthermore, existing studies have paid insufficient attention to the mechanisms through which adaptive leadership contributes to sustainability outcomes. This study reviews conceptual, theoretical, and empirical literature to examine the relationship between adaptive leadership and financial sustainability among NGOs and to identify the phenomenon emerging from the deployment of adaptive leadership within nonprofit organizations. The review reveals that adaptive leadership contributes to the development of critical organizational capabilities, including resource mobilization capability, stakeholder trust, donor confidence, organizational agility, and organizational resilience. Among these capabilities, resource mobilization capability emerges as the most significant mechanism linking adaptive leadership to financial sustainability. The review further suggests that adaptive organizational culture, characterized by learning, innovation, collaboration, and flexibility, plays an important moderating role in strengthening the effectiveness of adaptive leadership. Drawing upon Adaptive Leadership Theory, Resource Dependence Theory, Stakeholder Theory, Dynamic Capabilities Theory, and Organizational Resilience Theory, the study proposes a theoretical model linking adaptive leadership, resource mobilization capability, adaptive organizational culture, and financial sustainability. The paper contributes to nonprofit leadership scholarship by extending adaptive leadership theory into the domain of nonprofit financial sustainability and providing a conceptual framework for future empirical investigation. The proposed model offers a foundation for understanding how leadership can enhance the long-term sustainability of NGOs operating in increasingly dynamic and uncertain environments.},
 year = {2026}
}

Copy | Download

TY  - JOUR
T1  - Adaptive Leadership and Financial Sustainability Among Non-Governmental Organizations in Tanzania: A Review of Literature
AU  - Tumaini Abel Majaliwa
Y1  - 2026/10/28
PY  - 2026
N1  - https://doi.org/10.11648/j.sjbm.20261404.13
DO  - 10.11648/j.sjbm.20261404.13
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 173
EP  - 189
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20261404.13
AB  - Financial sustainability remains a persistent challenge for Non-Governmental Organizations (NGOs) which are in the nonprofit sector, particularly in developing countries where donor dependency, funding uncertainty, changing stakeholder expectations, and increasing accountability demands constrain long-term organizational viability. While adaptive leadership has attracted growing scholarly attention as a leadership approach for addressing complexity and change, limited research has examined its role in promoting financial sustainability within nonprofit organizations. Furthermore, existing studies have paid insufficient attention to the mechanisms through which adaptive leadership contributes to sustainability outcomes. This study reviews conceptual, theoretical, and empirical literature to examine the relationship between adaptive leadership and financial sustainability among NGOs and to identify the phenomenon emerging from the deployment of adaptive leadership within nonprofit organizations. The review reveals that adaptive leadership contributes to the development of critical organizational capabilities, including resource mobilization capability, stakeholder trust, donor confidence, organizational agility, and organizational resilience. Among these capabilities, resource mobilization capability emerges as the most significant mechanism linking adaptive leadership to financial sustainability. The review further suggests that adaptive organizational culture, characterized by learning, innovation, collaboration, and flexibility, plays an important moderating role in strengthening the effectiveness of adaptive leadership. Drawing upon Adaptive Leadership Theory, Resource Dependence Theory, Stakeholder Theory, Dynamic Capabilities Theory, and Organizational Resilience Theory, the study proposes a theoretical model linking adaptive leadership, resource mobilization capability, adaptive organizational culture, and financial sustainability. The paper contributes to nonprofit leadership scholarship by extending adaptive leadership theory into the domain of nonprofit financial sustainability and providing a conceptual framework for future empirical investigation. The proposed model offers a foundation for understanding how leadership can enhance the long-term sustainability of NGOs operating in increasingly dynamic and uncertain environments.
VL  - 14
IS  - 4
ER  -

Copy | Download