Organisational Resources and Performance of Road Construction Companies in Nyeri County, Kenya
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Date
2023-11
Authors
Mwangi, Jacinta Wairimu
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
The number and intensity of stalled projects in the Kenyan public sector have been on the rise. Inadequacy and poor state of resources has been cited as the key challenge responsible for delays or complete stall of projects. While theorists argue that the success of construction companies is largely pegged on their ability to ensure availability and efficient management of resources, empirical evidence to demonstrate this is still scanty. The current study focused on organizational resources and performance of road construction companies in Nyeri County, Kenya. The study specifically sought to determine the effect of human resources, physical resources, financial resources and intangible resources on performance of road construction companies in Nyeri County of Kenya. The study was anchored on the resource based view of the firm and the dynamic capabilities theory as the main guiding theoretical frameworks to the study. A descriptive research design was applied. The target population was made up of 58 road construction companies in Nyeri County. A census approach was used to subject all the 58 road construction companies to the study. The study purposively targeted the project managers and project engineers working for the road construction companies. This procedure led to a total of 116 respondents targeted. The study assessed the performance of the companies for a six-year period 2016-2021. Both primary and secondary data sources were utilised. Primary data was collected through a semi structured questionnaire which was administered using the drop and pick method. The instrument was tested for validity using expert opinion and pretesting while reliability was assessed using Cronbach’s Alpha Reliability test. The study collected secondary data from the management reports of the road construction companies and through a review of other corporate handbooks. Both descriptive and inferential statistics were used in the analysis. The R Square (coefficient of determination) stood at 0.725. This demonstrated that 72.50 percent of the variation in performance of road construction companies is influenced by organisational resources (human resources, physical resources, financial resources and intangible resources). The multiple regression analysis output provides evidence that all organisational resources (human resources, physical resources, financial resources and intangible resources) are useful and positive determinants of performance of road construction companies. The Pearson correlation analysis output showed that all the independent variables considered; (human resources, physical resources, financial resources and intangible resources) have a positive and statistically significant relationship with performance of road construction companies. While the standards performance scored a high performance figure, the same could not be established with cost and schedule indicators. The road construction companies were only moderately effective and efficient in managing their finances and controlling costs associated with projects. In addition, the road construction companies had only moderately succeeded in ensuring project timelines were met as spelt out through work plans. The study recommends a heightened investment in organisational resources for improved performance. With regard to human resources, recommends regular training needs assessment surveys to establish the training demands of the workforce and inform training and development actions. As regards intangible resources, the study recommends involvement in corporate social responsibility and also adoption of a culture of creativity and innovation.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of Degree of Master of Business Administration (Strategic Management) of Kenyatta University, November 2023.
Keywords
Organisational, Resources, Performance, Road Construction, Companies, Nyeri County, Kenya