Effect of Joint Venture Financing on the Level of Operational Risk Among Affordable Housing Developers in Kenya
Abstract
This study investigated the impact of joint venture financing on operational risk reduction within
the context of affordable housing development in Nairobi, Kenya. Data for this research were
collected through a structured questionnaire administered to 55 affordable housing project
developers, yielding a response rate of 93.22%. The questionnaire gathered information related
to respondents' background, management level, education, work experience, and perceptions of
joint venture financing and operational risk. The collected data were subjected to rigorous
statistical analysis, including regression modeling and analysis of variance. The findings
revealed a strong positive relationship between joint venture financing and operational risk
reduction, as indicated by a high correlation coefficient (R = 0.787) and a significant coefficient
of determination (R Square = 0.619). This suggests that increased utilization of joint venture
financing strategies is associated with improved operational risk reduction. The analysis of
variance (ANOVA) further validated the statistical significance of the regression model,
confirming that joint venture financing is a key factor contributing to the variation in operational
risk reduction. The regression coefficients indicated that specific components of joint venture
financing, such as financial strategy partnerships, research synergy, collaborative funding, and
resource combination, all play a statistically significant and positive role in reducing operational
risk. This study underscored the importance of fostering financial partnerships and collaborative
strategies to mitigate risk within the affordable housing development sector. The findings have
implications for policymakers, industry stakeholders, and affordable housing developers seeking
to enhance risk management practices and promote sustainable housing development in Nairobi
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1376]
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