Project Governance and Performance of Road Construction Projects in Kenya

Abstract

Effective project governance is vital for enhancing project success and organisational strategy. This study examined the impact of project governance on the performance of road construction projects in Kenya. Kenyan road projects are often marked by low budget absorption, cost overruns, and poor quality of work, which affect their sustainability. This issue has been linked to deficiencies in the construction project management system. Therefore, this study aimed to investigate how project governance influences the performance of road construction projects in Kenya. The specific objectives included assessing the effect of strategic alignment, top management support, project risk management, and project communication on project performance, as well as evaluating the moderating role of organisational culture in this relationship. The study was grounded in Contingency Theory, Resource-Based View Theory, Enterprise Risk Management Theory, Communication Theory, and Schein’s Organizational Culture Theory, which collectively explain the relationships between project governance practices, organizational culture, and the performance of road construction projects. It employed both descriptive and explanatory research designs within a pragmatism paradigm. The units of analysis were 252 road construction projects carried out by Kenya’s national road agencies (KURA, KeRRA, and KeNHA). The projects included 61 by KURA, 155 by KeRRA, and 36 by KeNHA. The units of observation involved resident engineers, assistant resident engineers, project surveyors involved in these projects, and the Director- Generals and Directors of the agencies. The overall sample size, determined using the Krejcie and Morgan formula, was 255 respondents. A multistage sampling method, combining purposive and stratified random sampling, was used. Data were collected from primary sources- via semi- structured questionnaires and interview guides- and secondary sources, such as quality assurance, monitoring and evaluation, and internal audit reports from the road agencies. The questionnaire was pilot- tested with 25 respondents to assess reliability and validity. Data analysis was conducted using SPSS version 25. Qualitative data were analysed thematically and presented narratively, while quantitative data were summarised with descriptive statistics and shown in tables and figures. Correlation and regression analyses examined the relationships among variables. The findings revealed that strategic alignment (β = 0.508, p < 0.05), top management support (β = 0.812, p < 0.05), project risk management (β = 0.725, p < 0.05), and project communication (β = 0.738, p < 0.05) each had a positive and statistically significant effect on the performance of road construction projects in Kenya, with the model explaining 74.7% of the variance in project performance (R² = 0.747). Further, organizational culture positively and significantly moderated the relationship between project governance and project performance, resulting in an increase in explanatory power (ΔR² = 0.018). Based on these results, the study recommended that organisations involved in road construction projects in Kenya focus on strategic alignment, top management support, risk management, communication, and fostering a strong organisational culture.