Factors affecting adoption of project management processes by Small and Medium sized Enterprises (SMEs) in Nairobi

Abstract

The research sought to understand the factors that affect the adoption of Project Management processes among Small and Medium Enterprises (SMEs) in Nairobi, the Capital City of Kenya. Other studies have shown that for businesses to continue delivering value for their customers, there is an urgent need to have a nexus between the process of project management, characteristics of the organization and the project type. Through the research, it was apparent that the project management processes required by SMEs varies greatly from that required by traditional and large projects; the culture among SMEs, financial resources available to them and the management experience all contribute in the low adoption of project management among this latter group of organizations. The research investigated three factors, namely, finance, managerial experience and the business environment. The research was further anchored by two theories, namely, resource based theory and the theory of constraints. The research design was descriptive, targeting a population of SMEs operating in Nairobi. Stratified random sampling was used to select the study sample. Structured questionnaires were used to collect data and the Primary data was collated using questionnaires that were self-administered and sent to respondents. The study concluded that there was a positive and significant correlation between access to financing, managerial experience and the business environment and adoption of Project Management processes in SMEs in Nairobi, Kenya. Using regression analysis, the research established that access to financing has the most influence on the adoption of Project Management processes whilst the business environment and managerial experience where less significant in that order. The study found that to increase the adoption of Project management processes by SMES, firms should allocate enough funds to the process and train their employees on the use of Project Management processes. Regular training should be embraced to equip the operational team with the required skills in adoption of PM processes.