Risk Management Practices, Project Implementation and Performance of Jua-Kali Empowerment Programmes in Nairobi, Kenya
Abstract
There is limited empirical literature supporting the interaction of risk management practices and the relationship between project implementation and performance of empowerment programmes. This theoretical limitation cannot just be ignored in the context of entrepreneurs` empowerment programmes due to their immense contribution to the National Gross Product (NGP) and national wellbeing. The purpose of this research was to examine the influence of risk management practices on the relationship between project implementation and performance of Jua-kali Empowerment Programmes (JEP) in Nairobi County, Kenya. The target population was 327 enterprises having benefitted from the JEP in Nairobi County Kenya. A sample of 181 entrepreneurs chosen using Krejcie and Morgan sample determination table. Both simple random sampling and purposive sampling techniques were used to select samples. The reliability of the questionnaire was tested using Cronbach Alpha Coefficient of reliability at 0.7. Pearson`s Correlation Coefficient (r) was used in correlational analysis and regression analysis was used in predicting the research model. The results showed that at P=0.000<0.05, r= 0.575, R2= 0.331 for F (1,145) = 4.632 depicting 1.4% change in performance of the programmes after introduction of risk management practices. It demonstrates that strength of the relationship between project implementation and performance of JEP depends on risk management practices. It was concluded that there is significance interaction between project implementation and risk management practices that moderates the effect of the project implementation on the performance of JEP. Hence Governments, implementors and supporters of entrepreneurs` empowerment programmes should strive to implement need-based project interventions while ensuring adequate risk mitigation measures in order to thwart adverse uncertainties and events that may derail sustainable delivery of results.
Keywords: Risk management practices, project implementation, performance of Jua-kali empowerment programmes
References
Ahrne, G. (1994). Social Organizations: Interaction inside, outside and between organizations. London: Sage
Aiken, L. S. & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. Newbury Park, CA: Sage.
Alaloul, W.S, Liew, M, S., Wan, N. A. & Zawawi, A. (2016). Identification of coordination factors affecting building project performance. Alexandria Engineering Journal-2016-55
Altschuld, J. W. & David, D. K. (2010). Needs Assessment: An Overview. Thousand Oaks: Sage.
Archer, N. P. & Ghasemzadeh, F. (2004). Project Portfolio Selection and Management.
In: Morris, P.W.G., Pinto, J.K. (Eds.). John Wiley & Sons Inc. Barzilai, K. (2011). Organizational theory. Western Reserve University
Begicevic, N., Divjak, B. & Hunjak, T. (2009). Decision-making on prioritization of projects in higher education institutions using the analytic network process approach. Central European journal of operations research , Vol. 18 (1)
Benţa, D., Podean, I. M., & Mircean, C. (2011). On Best Practices for Risk management process in Complex Projects. Informatica Economică Vol. 15 (2).
Best, J. W. & Kahn, J. (2009). Research in education, New Delhi & Prentice Hall of India
Boh, W. F. (2007). Mechanisms for sharing knowledge in project-based organizations. Information and organization, Vol. 17(1).
Carbone, T. A., & Tippet, D. D. (2004). Project Risk management process Using the Project Risk, FMEA. Engineering Management Journal, 16(4), 28-35.
Chan, A. P. C. & Chan, A. P. L. (2004) Key Performance Indicators for measuring construction success. Benchmarking: An International Journal, 11(2), 203-221
Chavan, M., (2009). The balanced scorecard: a new challenge. Journal of management development, vol. 28, issue 5, p. 393-406.
Cleland, D. I. & Ireland, L. R. (2002). Project management, strategic design and implementation. Newyork, McGraw-Hill publishers
Creswell, J. W. (2003). Research design qualitative, quantitative and mixed methods approach (3rd edition), International educational and professional publisher. Thousand Oaks, London, New Delhi. Sage publications
Culligan, M., Marks, S., Nelson, T., Radstone, L. & Verzuh, E. (2013). A Guide to the project management for development professionals (PMD Pro) PM4NGOs Publishers.
Engwall, M. (2003). No project is an island: linking projects to history and context. Research policy, Vol. 32 (5).
Eskesen, S. D., Tengborg, P., Kampmann, J., & Veicherts, T. H. (2004). Guidelines for tunneling risk management process, International Tunneling Association (19(3).
Flouris, T. & Lock, D. (2008). Aviation project management, 2008
George, D., & Mallery, P. (2003). SPSS for Windows step by step: A simple guide and reference. 11.0 update (4th ed.). Boston: Allyn & Bacon
Glaser, J. (2004). Management's role in IT project failures. Healthcare financial management. October 2004. pp 90-92.
Goldratt, E. M. & Cox, J. (1986). The goal: a process of ongoing improvement. [Croton- on- Hudson, NY]: North river press, ISBN 0-88427-061-0.
Higiro, G., Mbabazi, P., & Kibachia, J. (2015). Influence of Implementation Factors on Effective Delivery of Energy Projects in Rwanda: Case of Nyabarongo I Hydro Electric Power Project. The International Journal of Business & Management, Volume 3(9)
Hobbs, B., Aubry, M. & Thuillier, D. (2008). The project management office as an organizational innovation. International journal of project management, Vol 26, No.5
Howell, G. & Lauri, K. (2000). Reforming Project Management: The Role of Lean Construction, Eighth Annual Conference of the International Group for Lean Construction, (IGLC–8). ISO 31000: 2016, Risk management – A practical guide for SMEs (2016) ISO Guide 73: 2009, Risk Management-Vocabulary, First Edition, 2009
Johnson, G., Scholes, K. & Whittington, R. (2006). Exploring Corporate Strategy (7th ed.) Harlow, Essex: Pearson education limited.
Junior, R. R., & Carvalho, M. M. (2013). Understanding the Impact of Project Risk management process on Project Performance: An Empirical Study. Journal of Technology Management Innovation Vol. 8.
Kanyari, J. W. & Namusonge, G. S. (2013). Factors that influence the Kenyan youth entrepreneurs towards the youth enterprise development fund. International journal of education and research, Vol. 1(5).
Kapsali, M. (2011). Systems thinking in innovation project management: A match that works. International journal of project management; Vol 29; 396–407
Kara, N. K., & Kester, Q., (2015). The Impact of Effective Project Team Management on Project Team Productivity: A Case Study of Ghana Broadcasting Corporation Education Project. International Journal of Social Sciences (2015).
Kast, F. & Rosenzweig, J. (1972). General systems theory: applications for organization and management, Academy of management journal, pp.447-464.
Kaufman, R. R., Alicia, M. R. & Hannah, M. (1993). Needs Assessment: A User's Guide.
Englewood Cliffs, New Jersey: Educational Technology Publications, Inc.
Kenya National Bureau of Statistics (KNBS, 2016). Micro, Small and Medium Establishment (MSME) Survey.
Kerzner, H. R. (2009). Project Management: A systems approach to planning, scheduling, and controlling (10th Edition) Berea, OH: John Wiley and Sons
Kester, L., Griffin, A., Hultink, E. J. & Lauche, K. (2011). Exploring portfolio decision- making processes, Journal of production and innovation management vol, 28 (6) 641–661
Khang, D. B., & Moe, T. L., (2008). Success criteria and factors for international development projects: a life-cycle-based framework. Project Manage. Journal Vol. 39(1), 72–84.
Kinyua, E. Ogollah, K., & Mburu, D. K. (2015). Effect of risk management strategies on project performance of small and medium information communication technology enterprises, International Journal of Economics, Commerce and Management, Vol. III (2).
Kithae, P. P., Gakure, R.W. & Munyao, L. M. (2012). The Place of Micro and Small Enterprises in Achievement of Kenya’s Vision 2030; Journal of US-China Public Administration, Vol. 9, No. 12.
Kolawole, A. R., Kamau, K. P., & Munala, G. (2016). Change Order Management Factors in Building Projects in Northern Nigeria Asian Social Science; Vol. 12, No. 1; 2016
Krejcie, R.V. & Morgan, D.W., (1970). Determining Sample Size for Research Activities Educational and Psychological Measurement, Vol. 30(608), Sage Publishers.
Kululanga, G. & Kuotcha, W. (2010). Measuring project risk management process for construction contractors with statement indicators linked to numerical scores", Engineering, Construction and Architectural Management, Vol. 17 (4).
Kylindri, S., Blanas, G., Henriken, L., & Stoyan, T. (2012). Measuring Project Outcomes: A Review of Success Effectiveness Variables. Oral -MIBES (pp. 212- 223).
Lance, C. E., Butts, M. M., Michels, L. C. (2006). The Sources of Four Commonly Reported Cutoff Criteria: What Did They Really Say? Organizational Research Methods. Vol. 1;9(2)
Larson, E. W., Clifford F. Gray. & Clifford, F. Gray. (2011). Project management: the managerial process. New York: McGraw-Hill Irwin
March, J. G. (2005). Valg, vane og vision. København: Forlaget Samfundslitteratur.
Mbhele, T. P. (2012). The study of venture capital finance and investment behaviour in small and medium-sized enterprises. South African journal of economic and management sciences Volume 15 (1).
Moller, R. Y., (2011). Drivers of risk management process. Adapting risk management process to organizational motives, Research executive summary series Volume 7(7).
Muller, R. & Turner, J. R. (2001). The impact of performance in project management knowledge areas on earned value results in information technology projects, Project Management: International Project Management Journal, Vol. 7(1)
Murray, J. P. (2000). Reducing IT project complexity, Information Strategy - The Executive’s Journal, vol.16, no.3, pp. 30-39.
Na, I., Lee, S., Shim, G., & Ahn, K. (2008). Risk Breakdown Structure of Multi-Level and Mixed-Use Development in Urban Renaissance Project”, Spring Conference Urban Design Institute of Korea, Urban Design Institute of Korea, 399-408 OGC. (2001).
Nagesh, D. S., & Thomas, S., (2015). Success factors of public funded R&D projects. Current Science, Vol. 108, NO. 3,
Nderitu, J. M. & Kwasira, J. (2016). Influence of Risk management process on Successful Implementation of Projects in Public Secondary Schools in the County Government of Kiambu, Kenya. The International Journal of Business & Management, Vol. 4(3).
Nelson, C. (1997). Training Goes to Market: A Comparative Study of Two Kenyan Training Programs. MBP Publications, Bethesda, Maryland: DAI
Nwachukwu, C.C. & Fedelis, I. E. (2011). Building Construction Project Management Success as a Crucial Issue in Real Estate Development and Investment. American Journal of Social and Management Sciences, 2 (1) 56-75
Oehmen, J., Olechowski, A., Kenley, C. R., & Ben-Daya, M. (2014). Analysis of the effect of risk management practices on the performance of new product development programmes. Technovation, Vol 34(8), 441–453.
Pakseresht, A. & Asgari, G. (2012). Determining the critical success factors in construction projects: AHP approach. Interdisciplinary journal of contemporary research in business, (ISSN 2073-7122) Vol. 4. IIBS publisher.
Park, J., Park, B., Cha, Y., & Hyun, C. (2016). Risk Factors Assessment considering Change Degree for Mega-Project: Procedia - Social and Behavioral Sciences 218 (2016 )50 –55
Porter, M. E. (1985). Competitive advantage. New York, USA: The Free Press.
Project Management Institute. (PMI, 2013). A Guide to the Project Management Body of Knowledge (PMBOK Guide), Fourth Edition. Newtown Square, PA
Rehman, A. U, Usmani, Y.S, Al-Ahmari, A.M. A. (2014). A Study to Assess Operational Factors to Enhance Project Performance. Proceedings of the 2011 International Conference on Industrial Engineering and Operations Management Kuala Lumpur, Malaysia, January 22 – 24, 2011
Republic of Kenya (2012). Micro and Small Enterprises Act of 2012, Government printer.
Republic of Kenya (2013). Micro and Small Enterprises Authority Entrepreneurship transforming Kenya. Strategic plan 2013-2017.
Republic of Kenya (2016). Economic Survey, 2016, Government Printer.
Republic of Kenya (2017). Achievements of the Ministry for the period July 2013 to July 2014, Nairobi, Kenya.
Republic of Kenya (2017). Achievements of the Ministry for the period July 2013 to July 2014, Nairobi, Kenya.
Rubin, M. (2014). Why is risk analysis essential in the project management process? Project Management Journal, 25 (1), 755- 767.
Santos, C. Santos, V, Tavares, A., & Varajao, V. (2014). Project Management success in health the need of additional research in public health projects. Procedia Technology 16 (2014)
Schwartz, M.& Hornych, C. (2010). Cooperation patterns of incubator firms and the impact of incubator specialization: Empirical evidence from Germany, Technovation, 30, 485-495.
Scillite, J. L & Chakrabarti, A. K. (2010). The role of incubators interactions in assisting new venture. Technovation, Vol. 30 (3)
Shenhar, A. J. (1999). Adapting Your Project Management Style: The Key to Project Success, Hoboken, NJ: Stevens Institute of Technology.
Shenhar, A.J., & Dvir, D. (2010). Reinventando gerenciamento de projetos- A abordagem diamante ao crescimento einovação bem-sucedidos. M.Books, Harvard Business Sch Prs
Shenhar, J. A, Levy, O, Dvir, D. & Maltz, A. C. (2001). Project Success: A Multidimensional Strategic Concept, Long Range Planning, Vol 34
Shenhar, J. A, Levy, O. & Dvir, D. (1997). Mapping the dimensions of project success. Project Management Journal: The Professional Journal of the PMI. Volume 28, No 2
Watson, K. J., Blackstone, J. H. & Gardiner, S. C. (2007). The evolution of a management philosophy: The theory of constraints. Journal of operations management 25, (2).
Williams, T. M. (1999). The need for new paradigms for complex projects. International Journal of Project Management, 17(5).
World Bank (2013). Doing business in East African Community Countries; smarter regulation for SMEs.Washington D C.
Zandhuis, A, & Stellingweref, R. (2013). ISO21500: Guidance on project management- A Pocket Guide. Van Haren Publishing, Zaltbommel
Zulkiffli, A., & Perera, N. (2011). A literature analysis on business performance for SMES, SIBR Conference on Interdisciplinary Business and Economics Research, Bangkok.
Zwikael, O, & Ahn M. (2011). The effectiveness of risk management process: an analysis of project risk planning across industries and countries. Risk Anal, Volume 31(1)
