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Management Capability and Financial Performance of Small Scale Road Work Construction Companies in Bomet County, Kenya

Ndambiri Moses (), David Kiragu and Kamau Riro

International Journal of Academic Research in Accounting, Finance and Management Sciences, 2018, vol. 8, issue 1, 185-195

Abstract: The main aim of this study was to establish the influence of management capability on the financial performance of small scale road work construction companies in Kenya. The design used in the research was descriptive survey. The study targeted the small scale roads construction companies in Bomet County. These are the companies that work under the road construction agencies in Kenya namely Kenya National Highways Authority, Kenya Urban Roads Authority and Kenya Rural Roads Authority in the county. The target population was the 102 small scale roadwork construction companies in Bomet County. The sample was selected using proportionate stratified sampling method. The sample had 81 respondents. A questionnaire with both closed ended and open ended questions was used as the tool for the collection of primary data. Descriptive statistics such as Minimum, Mean and Standard Deviation were used describe analyse quantitative data. Bi-variate Linear Model was used for inferential analysis with the help of SPSS. The findings show that management's capability influences the financial performance of construction firms. This is because management's capability was tainted by incompetence, poor management skills, ineffective communication, and reluctance to make decisions and inadequate planning and budgetary provisions. The study recommended that the management should attend seminars and workshops in order to improve their management skills and capabilities in handling projects in a fast emerging economy. In addition, the project owners, contractors, and consultants should hold their responsibilities to avoid any delay or unnecessary cost. It was suggested that a further study should focus on other elements of management capability like personal characteristics of managers to show how they affect the financial performance of the construction firms.

Keywords: Bi-variate Linear; Management Capability; Financial Performance; Small Scale Road Work Construction Companies (search for similar items in EconPapers)
Date: 2018
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