Logistics outsourcing and performance of road construction projects in Nairobi county
Abstract
The study was conducted on logistics outsourcing and performance of road
construction projects in Nairobi County.This study was set, to determine the extent of
logistics outsourcing in road construction projects in Nairobi Count, to establish the
relationship between logistics outsourcing and the performance of road construction
projects in Nairobi County and to identify the challenges of implementing logistics
outsourcing in road construction projects in Nairobi County. The study used
descriptive survey and the population of the study included all the road construction
projects in Nairobi County that is national and county roads. The population of
construction projects is 120, which will represent a study population. Out of the 120
projects, a sample of 25 projects was taken for study in all the zones in Nairobi
Primary data was collected using a questionnaire. The respondents of this study were
project coordinators and implementers (managers), the data collected was sorted and
coded then entered into the Statistical Package for Social Sciences. Mean and
standard deviation were used to establish the extent of logistics outsourcing and the
challenges of implementing logistics outsourcing. A multivariate regression model
was used to analyse the relationship between logistics outsourcing and performance.
The study concluded that road construction projects in Nairobi County face logistics
outsourcing challenges. These challenges involves delay of delivery of construction
materials, delay in disbursement of funds the government agencies, contractors own
cash flow problems, delay in financial approval of variations and unexpected ground
conditions .The regression analysis showed that there was a strong positive
relationship between the variables since the independent variables contributes 81% in
explaining the relationship between the variables in the regression model. The study
recommends that the road construction firms should invest in IT infrastructure in
order to improve on efficiency in their functions and activities. One of the limitations
of this study is that the findings of this study and application thereof are limited to
road construction projects in Nairobi County. They may not be applicable directly to
other organizations operating outside the construction industry. It is therefore
important to note that they can only be used for comparative purposes and not any
direct application in other organisations.
Publisher
University of Nairobi