Macro environment and performance of roads construction projects in Nairobi City County, Kenya
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Date
2025-08
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Kenyatta University
Abstract
Despite being critical for Kenya's economic development, road construction projects in Nairobi City County frequently experience significant performance issues. These challenges are largely due to a variety of environmental factors that disrupt project success. Consequently, this study aimed to explore the relationship between the macro environment and the performance of roads construction projects in Nairobi City County, Kenya. The specific objectives included establishing the connections between socio-cultural factors, economic factors, technological aspects and political factors with the performance of roads construction projects in Nairobi City County. Additionally, the research aimed to assess the moderating impact of government policies on the relationship between macro environment factors and project performance. Furthermore, it aimed to evaluate the mediating influence of project stakeholders’ involvement on the connection between macro environment factors and project performance. The theoretical foundations guiding this study encompassed Systems Theory, stakeholder theory, upper echelons’ theory, and contingency theory. Utilizing a positive research philosophy, the study adopted a descriptive and explanatory research design. Nairobi City County, in this context, referred to the five counties in the Nairobi Metropolitan Area: Nairobi County, Kiambu County, Kajiado County, Machakos County, and Murang’a County. The target audience comprised the 176 completed roads construction projects in Nairobi City County executed by the Kenya Rural Roads Authority (KERRA). The unit of observation encompassed road engineers, project planners, and directors (KERRA), road supervisors, road inspectors, road surveyors, contractors, and members of project implementation teams (KERRA). The unit of analysis focused on the completed roads construction projects in Nairobi City County. Proportional stratified sampling was employed to determine a sample size of 253 respondents. Data collection involved the use of a structured questionnaire, with reliability tested through the split-half method and content validity employed for validity. Descriptive statistics1 were produced, including frequencies, percentages, mean scores, and1 standard1 deviation. The study carried out diagnostic tests, including normality test, heteroscedasticity test, linearity test, and1 multicollinearity test. Multiple linear regression, an inferential statistical technique, was1 utilized1. The results were displayed through tables. The study unveiled a positive and significant relationship between socio-cultural factors, economic factors, technological factors, and political factors with project performance. Furthermore, it identified that government policies exerted a moderating effect on project performance and project stakeholder involvement played a partial mediating role in project performance. In conclusion, the study establishes a discernible relationship between socio-cultural, economic, technological, and political factors and project performance. The research recommends that project managers and policymakers collaborate with local communities to integrate their cultural practices and lifestyle patterns into project planning and execution. The research recommends that project planners and financial institutions implement robust mechanisms for interest rate management to minimize financing risks. Project managers are urged to embrace digitization and automation, leveraging on technology to address complex technicalities before and during construction. To maintain adequate government funding, the study advocates for continued advocacy efforts to highlight the positive impact of infrastructure projects on local development. Furthermore, ongoing efforts to streamline procurement processes and eliminate corruption are encouraged to ensure a conducive environment for successful project outcomes. The outcome of the study would be useful to scholars, policy makers, and project management experts and stakeholders. The study suggests1 that macro environment factors1 not considered1 in the current study can be studied in other studies
Description
A thesis submitted to the school of business, economics and tourism in partial fulfilment for the award of degree of doctor of philosophy in business (project management) of kenyatta university, August 2024
Supervisors:
Dr. Paul K. Sang
Dr. David Nzuki