ORGANIZATION STRUCTURE CAPABILITIES AND PERFORMANCE OF CONSTRUCTION FIRMS IN KENYA
Kanalo J. Akumu - Jomo Kenyatta University of Agriculture and Technology, Kenya
Professor. Margaret A. Oloko (PhD) - Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Jared O. Deya (PhD) - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Effective organization structure capabilities should make it possible for employees to understand hierarchical information flow, coordination, task allocation and delegation in a firm. Based on this dimension, this study examined the influence of organization structure capabilities on performance of construction firms in Kenya. The study used descriptive research design and applied the positivist approach. The target population were 357 firms registered with BORAQS and thirty best performing general contractor firms in the construction industry. Stratified sampling technique was adopted with a sample size of 189 firms. The study relied on primary data sources based on self-administered questionnaire and data collected were both qualitative and quantitative. The collected data were fed into SPSS and analyzed using descriptive and inferential statistics. Multiple linear regression revealed a significant statistical relationship between organization structure capabilities effect on performance, (R2 =0.257, p=<0.001). Correlation analysis revealed a strong positive significant linear relationship between organization structure capabilities and performance of construction firms (r =0.512, p = <0.001) at significant p-values less than 0.05 at 95% confidence level. The qualitative data from respondents revealed that organization structure capabilities had weak effect on performance (M=2.35). Hypothesis testing results noted that the relationship between organization structure capabilities and performance of construction firms was strong and statistically significant and led to rejection of the null hypothesis. The conclusions drawn from study findings was that the construction industry players should align organization structure capabilities features like task allocation, coordination of parties and delegation strategies to lift valuable performance standards. Further research should be undertaken to compare results.