Operations Strategies and Firm Performance of Large Construction Companies in Nairobi County

Abstract

In recent years, construction companies in Nairobi County have been grappling with rising client demands, the imperative to enhance services and products, inflation, a shortage of skilled labor, and capital supply constraints. These challenges have driven them to formulate strategies for adapting to the evolving landscape. Developing of competitive business models has become a critical resource for improving the overall performance of large construction companies. This study aimed to investigate the impact of operations strategies on the performance of large construction companies in Nairobi County. The study objectives included assessing the implementation levels of operations strategies and examining the effect of operations strategies and performance. Descriptive research design was employed, involving a census population of 186 construction companies within Nairobi County. Primary data was obtained using questionnaires which were distributed through electronic mails and the drop-and-pick later method. The study applied descriptive statistics to analyze the level of operations strategy implementation by large construction companies in Nairobi County and employed multiple regression analysis to assess the impact of operations strategies on firm performance. The findings indicate that cost, quality, flexibility, speed, and dependability priorities were widely adopted by large construction companies in Nairobi County. In terms of their impact on performance, quality, flexibility, and dependability were found to have statistically significant and positive effects, while cost and speed did not exhibit statistically significant effects. It is recommended that construction companies prioritize the adoption of quality, flexibility, and dependability operations strategies, as they were found to significantly enhanced overall balanced scorecard. This study findings were limited as the research solely relied on primary data from large construction companies in Nairobi County. Future research should explore the relationship between operations strategies and performance in different sectors, such as consulting firms, manufacturing companies, or contractors operating under other categories defined by the National Construction Authority