Effect of Project Scope Management Practices on Performance of Liquefied Petroleum Gas Firms in Kenya

Abstract

Project scope management is part of the process groups set out in the practice of project management. This research looked at the effect of project scope management practices on project performance in the Liquefied Petroleum Gas firms in Kenya. The research objectives aimed at determining the effect of project scope management practices on the measurement of project performance as well as establishing the challenges faced by Liquid Petroleum Gas companies in Kenya in adopting scope management practices. The study focused on Contingency Theory, Project Performance Theory and the Resource-based View theories and adopted a descriptive research methodology. Questionnaires were used to collect quantitative data from licensed (LPG) importers and wholesalers in Kenya. Census was carried out as the target population was sizeable and reachable. The data was analyzed, interpreted and findings displayed by tables and graphs. Further, correlation and regression were conducted to gain deeper insights. From the regression equation, project budgets, project quality and environmental factors had a significant positive effect on operational performance. The overall p-value was significant (0.03397, p<0.05), indicating that project scope management practices had a significant association with project performance. The overall coefficient of determination R2 was 0.1437 which means there was 14.37% positive variation in project performance index due to changes in project scope management practices and 85.67% is variation of the dependent variable due to other factors not in the model. The p-value of the correlation test between project budget and product & service quality is significant. The researcher thus concluded that the project budget and product & service quality are positively correlated with a correlation coefficient of 0.4211 and p-value less than 0.01. Moreover, the p-values of the running cost and project flexibility are both significant with correlation coefficients of 0.3452 and 0.3160, respectively at p-value < 0.05, thus project quality was found to be positively correlated with both the running cost and project flexibility measures of performance. The most common challenges for adopting Project Scope Management Practices were prerequisite adoption pointers within the industry mainly by EPRA the governing body, Tariff restrictions and customer capability.