Measuring the Effect of Team Characteristics, Team Effectiveness on Organizational Performance, Organizational Survival and Competitiveness of an Indonesian NGO, Yayasan Cinta Anak Bangsa

Abstract

Teamwork was already presented since the beginning of human history and will continue to be the essence of human living and development. Pressure of global competition, the need to align business models with complex environments and the urgency in continuous innovation have led to the critical use of teams as a key element of organizational design. In the context of NGOs, many have exercised teams as their central management to carry out projects. However, since the Asia financial crisis occurred in 1998, the competition to attract donators becomes heightened among NGOs. Many donators inquire the organizational performance as part of the requirement, which consequently determine their survival. One way to improve NGOs’ competitive advantage is none other than to enhance their teamwork performance. The purpose of this research is to explore the relations between team characteristics, team effectiveness, organizational performance, and organizational survival and competitiveness in the NGOs context. A Team Effectiveness, Organizational Performance, Organizational Survival and Competitiveness (TEPS) Model developed by Shih and Putri, was analyzed by using Partial Least Squares (PLS) method. 152 samples were obtained in an Indonesian NGO, Yayasan Cinta Anak Bangsa (YCAB Foundation) for this study. The result indicated that team characteristics indeed had a positive and significant effect towards team effectiveness; in which team effectiveness also had positive and significant effect towards innovation, customer’s satisfaction, and financial performance, as well as organizational survival and competitiveness of YCAB. Practical implications and suggestions were also proposed in order to improve the teamwork performance in YCAB Foundation.

Teamwork was already presented since the beginning of human history and will continue to be the essence of human living and development. Pressure of global competition, the need to align business models with complex environments and the urgency in continuous innovation have led to the critical use of teams as a key element of organizational design. In the context of NGOs, many have exercised teams as their central management to carry out projects. However, since the Asia financial crisis occurred in 1998, the competition to attract donators becomes heightened among NGOs. Many donators inquire the organizational performance as part of the requirement, which consequently determine their survival. One way to improve NGOs’ competitive advantage is none other than to enhance their teamwork performance. The purpose of this research is to explore the relations between team characteristics, team effectiveness, organizational performance, and organizational survival and competitiveness in the NGOs context. A Team Effectiveness, Organizational Performance, Organizational Survival and Competitiveness (TEPS) Model developed by Shih and Putri, was analyzed by using Partial Least Squares (PLS) method. 152 samples were obtained in an Indonesian NGO, Yayasan Cinta Anak Bangsa (YCAB Foundation) for this study. The result indicated that team characteristics indeed had a positive and significant effect towards team effectiveness; in which team effectiveness also had positive and significant effect towards innovation, customer’s satisfaction, and financial performance, as well as organizational survival and competitiveness of YCAB. Practical implications and suggestions were also proposed in order to improve the teamwork performance in YCAB Foundation.