RP-Department of Management Science

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Browsing RP-Department of Management Science by Subject "Adoption of Risk Management Strategies"

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    Effect of Insurance Risk Management Strategies on Performance of Construction Firms in Selected Counties in Kenya
    (Novelty Journals, 2018) Ondara, Alfayos Elijah
    The construction industry entails high levels of risks, but often these risks are not dealt with adequately, resulting in poor performance, which is reflected in frequent cost and time overruns, as well as poor quality of work. Insurers traditionally avoid firms with high risk portfolios and subsequently will not offer insurance covers or may charge very high premiums to compensate for the increased risk. Previous studies have found an inconclusive relationship between adoption of risk management strategies and enhanced construction firm performance. As such, the general objective of this study was to determine the effect of insurance risk management strategies on performance of construction firms. The specific objective was to assess the moderating role of Government policy and regulation of the construction sector, on the relationship between risk management strategies and performance of construction firms in selected counties in Kenya. Performance was measured as a function of cost variance, time variance and quality control. This study used an explanatory research design and the research philosophy was based on positivism. The population of the study was all construction firms carrying out construction and public works in selected counties in Kenya, registered by the Republic of Kenya as of July 2011 to June 2012, a total of 2,414 construction firms. The sample size was 97 respondents, and simple random sampling was used for identifying respondent firms in Nairobi County, Nakuru County and Machakos County. Data collection was done using a self-administered semi-structured questionnaire. Data analysis was a mixture of descriptive statistics and inferential statistics.