STRATEGIC MANAGEMENT PRACTICES AND ORGANIZATIONAL PERFORMANCE IN THE CONSTRUCTION INDUSTRY IN KENYA: CASE STUDY OF ALLIED PLUMBERS LIMITED.

Abstract

This study sought to examine the significance, roles and contributions of strategic management practices and organizational performances in the construction industry in Kenya, with a focus on Allied Plumbers Limited. The research objectives were to identify the effect of strategic infrastructure management, to examine influence of strategic human resource management, to establish strategic procurement contribution, and to determine strategic information system contribution to Organizational performance. Scope of study was employees of Allied Plumbers limited Nairobi. The study was based on competitive Advantage theory as anchor theory, supplemented with Core competence (innovation) and Contingency theories. The study explored various literatures related to variables of study and identified research gaps and suggested strategy to mitigate the same. Descriptive research design was used as the researcher sought to study a specific situation, as it sought to establish the roles and relationship between aspects of the study. The target population were employees of Allied Plumbers limited drawn from planning and finance, human resource and administration, procurement, engineering and operations, tendering and contracts, and site and construction departments. The study used Yamane formula to come up with as sample size of 47 respondents from a target population of 53 employees. The questionnaire was used as data collection instrument for the study. Data analysis technique was descriptive statistics with aid of statistical package for social studies (SPSS); inferential statistics was used with multivariate regression analysis to identify a mathematical relationship between the variables. A Likert scale was used to measure indicators. Descriptive statistics method was applied to analyze quantitative data where data was scored by calculating the percentages, mean’ and standard deviation. The study found out that with strategic infrastructure management, human resource management, procurement and information systems in place, influences organizational performance. The study concluded that organization has in place requisite strategic infrastructure management and information systems but not fully embracing strategic human resource management and delegation of procurement authority is at minimal. From the findings the study recommended that organization need to enhance all its strategic management practices, and more so to put more emphasis on strategic human resource management policy to focus on talent management, training and development, employee engagement, and succession planning for the organization to be innovative, have smooth transition, delegate procurement authority, timely completion of projects, and gaining and having a sustainable competitive advantage in the construction industry. The study recommended that further study need to be carried out in other related constructions organizations and other sectors of the economy in out of the country to ascertain and relate the findings.