Purpose -The purpose of this paper is to explore whether non-governmental organizations' (NGOs') managers think and use strategy in their daily operations, to assess the impact of its applications on the performance of NGOs and to test the validity of the "dynamic model of strategic management" originally used for small and medium-sized enterprises (SMEs) in the Gaza Strip, Palestine. Design/methodology/approach -This empirical study is concerned with NGOs' managers located in the Gaza Strip in Palestine. Survey questionnaire was the main data collection instrument. A combination of qualitative and quantitative approaches, triangulation, is employed for data analysis. Findings -It was discovered that most NGOs used strategic management systems and perceived strategic management as an important tool for increasing the quality of service delivery, achieving goals and increasing overall organizational performance. Moreover, the principles of the "dynamic model" developed for SMEs are applicable to the NGOs in Palestine. Research limitations/implications -This research focused on local NGOs in Gaza Strip, while the contribution and significance of local NGOs and the civil society sector as a third sector is recognized around the world, inclusion of a number of international NGOs in the study would have yielded more significant results and would have helped to identify best practices in the sector. Practical implications -NGOs in Palestine and elsewhere must become more strategic in their planning and operations in order to increase their performance, productivity and efficiency in providing quality service. Originality/value -This first-time study contributes to the current stock of knowledge and our present understanding of strategic management, as perceived by NGO managers, by contextualising its use in Palestine.

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