Private Public Partnerships and Project Performance of Commercial State Corporations in Kenya

Abstract

Implementation of the public private partnerships is characterized by challenges like supplier identification, supplier selection and evaluation, due diligence supplier performance management and supplier relationship management. Building of these partnerships is also faced by challenges such as finding the right partners and the right shared problem with the right timing and level of resources, as well as collaboration across institutional cultures and process, all of which make partnerships difficult to facilitate. In addition, creating and maintaining partnerships between state corporations and private enterprises are very time intensive and at times have an uncertain payoff. The objective of this research was to study public private partnerships and project performance of Kenyan commercial state-owned corporations. The study was anchored on the resource dependence theory, bureaucratic and the stakeholder theory. The researcher used a descriptive approach with the population consisting of all 32 Kenyan corporations which are commercial and operating in Kenya. The researcher applied purposive sample technique and sampled 3 management staff from every institution totaling 102 participants. Primary data was collected from the study objects by way of questionnaires. The data was analyzed by means of frequencies, descriptive and inferential statistics. Descriptive measures used in this research included frequencies, percentages, means and standard deviation. Inferential findings in the research included correlation analysis and multiple regression analysis. From the findings technical skills, financial contribution, risk mitigation and accountability were key determinants of project performance. Correlation findings show that the association between project performance and financial contribution, risk mitigation and accountability was strong and positive. Regression findings indicated that there is a significant and positive link amid project performance and financial contribution, risk mitigation and accountability. It can be concluded that Kenyan commercial state corporations had put in place financial contribution, risk mitigation and accountability measures and such measures were important in determining project performance in the institutions. On technical skills, the researcher recommends that the management of public private partnerships should ensure they source for the most economical technical expertise in fields where required in carrying out corporation’s projects so as to achieve high output level. On financial contribution, the researcher recommends that the government provides financial support for feasibility analysis to check viability of the corporation’s projects so as to empower them to do it effectively. On risk mitigation, the researcher recommends that public private partnerships should involve specialists in carrying out risk analysis before any corporation’s project undertakings are carried out. On accountability, the researcher recommends that more transparency measures be incorporated in public private partnerships so as to enhance accountability. The researcher recommends an alternative study be done in other institutions for instance in the Kenyan private sector perhaps applying the same factors used in this study so as to find out whether the outcomes will be consistent in a different setting.