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Robert Mwagwabi Tunje

Jomo Kenyatta University of Agriculture and Technology (JKUAT)

John Karanja Ngugi (PhD)

Kenyatta University


CITATION: Tunje, R., M. & Ngugi, K., J. (2018). Influence of Project Management practices on Performance of Large Steel Manufacturing Firms in Nairobi County, Kenya. International Journal of Strategic Management, Vol. 7 (2); 1 – 31.


The main aim of the study was to find out the influence of project management practices on performance of large steel manufacturing firms in Kenya. Steel manufacturing sector is very essential in the country’s economy. Performance of these firms has however been sabotaged by a number of factors among them being the increased competition especially from the foreign goods from other countries like china and poor management among others. Research shows that project management practices are essential in enhancing the performance of organizations across the globe. The study therefore sought to establish the effects of project management practices on steel manufacturing firms in Kenya. The study was guided by the following objectives; to establish the effects of contractor’s competency on performance of steel manufacturing firms, to establish the relationship between risk management and performance of steel manufacturing firms, to find out the effects of resource allocation on performance of steel manufacturing firms and to establish the influence of stakeholder involvement on performance of steel manufacturing companies. To bring this into a clear focus, the study used several theories based on the specific objectives. The theories were; Frank Knight’s risk bearing theory, competency theory, resource dependence theory and stakeholder theory. The target population for the study was the large steel manufacturing firms in Nairobi whereby the project managers, supervisors and senior workshop employees were the key targets. The study adopted a stratified random sampling to obtain a sample size of 141 respondents. The data for the study was collected through use of questionnaires and analysed to generate tables and figures for easier understanding and interpretation. The findings from the study will be significant to the managers of the large manufacturing firms in that they will realize the key areas to focus on in project management for enhanced performance of their firms. The findings will also benefit the government and policy makers in that they will formulate rules and laws that favour the manufacturing sector based on the merits that surround the sector as far as economic development is concerned. The study findings revealed that contractor competency, risk management, resource allocation and stakeholder involvement enhances the performance of large steel manufacturing firms in Kenya and that they were positively and significantly related to the performance of large steel manufacturing firms. The study recommended that the firm managers should ensure that they hire competent contractors, acquire insurance policies, monitor resource usage and involve stakeholders to enhance firm performance.

Key Words: Project Management Practices, Large Steel Manufacturing firms, Risk Management, contractor competency, Resource allocation, Stakeholder involvement



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