INFLUENCE OF SUPPLY CHAIN MANAGEMENT PRACTICES ON PERFORMANCE OF CONSTRUCTION PROJECTS IN KENYA: A CASE OF CONSTRUCTION PROJECTS REGISTERED BY NATIONAL CONSTRUCTION AUTHORITY IN NAIROBI COUNTY

Erick Masanta

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya

Corresponding Author email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Dr. George Ochiri

College of Human Resource and Development,

Jomo Kenyatta University of Agriculture and Technology

P. O. Box 62000, 00200 Nairobi, Kenya

CITATION: Masanta, E., & Ochiri, G. (2018). Influence of Supply Chain Management Practices On Performance of Construction Projects in Kenya: A Case of Construction Projects Registered by National Construction Authority in Nairobi County. International Journal of Human Resources and Procurement. Vol. 7 (4) pp 20 – 38.

ABSTRACT

Previous surveys have close to 40% of construction projects researched on a worldwide basis experience serious performance problems. Failing to plan the supply chain, involving supply chain members in the planning, and integrating the processes of planning the supply chains and the construction project can be one reason for the low numbers of successful SCM adoption in construction. With scarcity of studies focusing on SCM and performance of construction projects this study focuses on the influence of supply chain management practices on performance of construction projects in Kenya. Specifically, the study focused on inventory management, supplier selection, strategic purchasing and procurement planning on performance of construction projects in Kenya. A cross sectional survey research design was used for the study. The target population consisted of all the 621 registered construction projects by National Construction Authority of Kenya. The data collection instrument was a questionnaire and quantitative data was used. The study used correlation and regression to achieve the specific objectives. The study concluded that project managers that carry out evaluation on supplier quality control practices, supplier ability to deliver on time and supplier competency are likely to enhance the performance of their project. The study recommended that projects managers and head of supply chains departments should ensure that they have a minimal threshold for their inventory to ensure continuity of their projects. The study recommended the construction companies without automated system for inventory management should adopt such systems for efficient inventory management. The study recommended that County governments should include supplier competency and supplier consistency in supplier evaluation.

Key Words: SCM, Inventory Management, Supplier Selection, Strategic Purchasing, Procurement Planning

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