Internal Organization Environment and Project Performance in Nairobi City County Projects
Wangui, Kihara Agnes
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The devolved units were created upon the presumption that they will enhance the service delivery to the citizens. However, despite billions of shillings being directed towards development projects; devolved units such as Nairobi City County have accounted for a mere 30% success rate in the project execution. The cause of this dismal performance is due to poor allocation of resources, incompetent leadership, lack of employee involvement, political interference, poor governance mechanism and lack of elaborate firm structure. Despite this trend there has been minimal examination of how internal environment influences project performance. This study sought after the effect of employee competency, organization structure and organization culture and resource capability on project performance. The resource-based view theory, the resource dependency theory and the contingency theory guided the research. The study employed descriptive research design. The study examined projects being undertaken across the 11 departments in Nairobi County. The responses were obtained from 5 personnel members’ in-charge of projects teams within each of the departments. The sample population was 55 personnel in Nairobi. A census sampling technique was employed utilizing both primary and secondary data collected with the use of semi-structured questionnaires and the annual county development plans and Auditor General Report. The study utilized both descriptive and inferential statistics (using SPSS 24) in analyzing the collected quantitative data which was then be analyzed using content analysis and presented in charts, tables, means, standard deviation, correlation coefficients and regression model. An 89% response rate was attained. The correlation results indicated that resource capability, organization culture, employee competency and organization structure positively and significantly affected project outcomes. The regression results showed that 45.3% of the project performance in Nairobi County Government are determined by the internal organization environment. The study concluded that employee competency, organization structure, organization culture and resource capability significantly impact the outcomes of projects. Its recommendations will be key when formulating policies within the county government to promote the expansion and proper management of county government projects. Recommendations were for county governments to improve the internal environment through fostering capacity building for the staff, enhancing resource and reputational capabilities, enhancing organization structure and culture which can be integral to increasing project performance. The study anticipated limitations in the collection of data due to busy work schedule among county officials.