TECHNOLOGICAL CAPABILITIES AND PERFORMANCE OF CONSTRUCTION FIRMS IN KENYA
TECHNOLOGICAL 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
Although the connection between technological capabilities and performance of firms is well documented in business economics literature, the link between technological capabilities and firm performance of late has attracted the interest of researchers in construction. construction as one of the most competitive and turbulent sectors in the world requires adoption of suitable and viable technological strategies to succeed. Therefore, dynamic capability theory that relates to technological capabilities and firm performance was incalcated to underpin technological capabilities' effect on firm performance. This study assessed the influence of technological capabilities on performance of construction firms in Kenya. The study used a descriptive research design and the target population was 357 firms registered with BORAQS and 30 Contractor best performing firms in Kenya. Stratified sampling technique with a sample size of 189 firms was used. The study depended on primary data sources based on self-administered questionnaire as a source of data and data collected were quantitative and qualitative. The collected data were then keyed into SPSS and analyzed using descriptive and inferential statistics. Multiple linear regression revealed a significant statistical relationship between technological capabilities effect on performance, (R2 =0.255, p =<0.001), Correlation analysis revealed a strong positive significant linear between technological capabilities and performance (r =0.510, p =<0.001). This was indicated by significant p-values less than 0.05 at 95% confidence level. The qualitative data revealed that technological capabilities had strong effect on performance (M = 4.21). Hypothesis testing results revealed that relationship between technological capabilities and performance of construction firms was strong and statistically significant and therefore null hypothesis was rejected. The conclusions drawn from the research study findings was that technological capabilities which is within the control of the firms was critical for achieving better performance of firms. The research study recommended that each firm needed to pay attention to technological advancement including conducting effective and efficient machine upgrade and protection, maintenance and placing priorities in innovation and novelties to spur performance.
