An Assessment of internal factors influencing the performance of state-owned corporations operating in Kenya’s public construction industry
Date
2024
Authors
Kiptoon, E. K.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The performance of public construction initiatives, particularly in developing economies like Kenya, often falls short of expectations due to limited resources, and a heavy reliance on loan funding. This study, grounded in the Resource-Based View theory, aimed to examine the internal factors influencing the performance of public construction firms in Kenya, utilizing McKinsey's 7S framework to assess the company's internal aspects. Guided by inquiries into the impacts of McKinsey's hard and soft factors on the performance outcomes of state-owned corporations in Kenya's public construction industry, this research utilized structured questionnaires for data collection and employed both ordinal logistic regression and Spearman's rank correlation for analysis. Findings reveal significant positive correlations between both hard (Strategy, Structure, Systems) and soft (Shared Values, Style, Staff, Skills) factors and organizational performance, underscoring the complex interplay between these internal elements and their impact on operational success. Specifically, strategy and structure exhibited strong positive relationships with performance, highlighting the importance of clear strategic planning and efficient organizational structures. Systems also positively influenced performance, although some variability in system effectiveness was noted. Soft factors such as leadership style and staff competencies showed strong positive impacts on performance, emphasizing the critical roles of effective leadership and skilled staff. Shared values and organizational culture also positively influenced performance, though some challenges in alignment were identified. The study, however, faces limitations including a lack of top management input, and its focus on Kenya's public construction sector, which may limit the generalizability of findings. Future research directions include longitudinal studies to explore causal relationships, comparative analyses across different sectors or regions, and qualitative inquiries to delve deeper into the organizational navigation of the 7S factors' challenges and opportunities. These suggestions aim to refine the understanding of how internal factors contribute to enhancing organizational effectiveness within the public sector, offering a foundational basis for both theoretical exploration and practical application.
Description
Full - text thesis
Keywords
Citation
Kiptoon, E. K. (2024). An Assessment of internal factors influencing the performance of state-owned corporations operating in Kenya’s public construction industry [Strathmore University]. http://hdl.handle.net/11071/15598