INFLUENCE OF STAKEHOLDERS’ ENGAGEMENT ON COMPLETION OF HOUSING PROJECTS IN KENYA; A CASE OF NGARA HOUSING PROJECT, NAIROBI COUNTY

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ABSTRACT

The process of engaging project’s stakeholders entails including them in the decision processes so that they can feel part of the project by owning it in one way or the other. While the process tends to be cumbersome, it smoothens project implementation. In this context, the current study sought to unravel the influence of stakeholder engagement on timely completion of public houses constructed in Kenya. The study sought to achieve this though the following objectives: establish influence of stakeholders’ engagement in project design on completion of housing construction projects in Kenya, determine the influence of stakeholders’ engagement in project execution on the completion of housing construction projects in Kenya, examine influence of stakeholders’ engagement in monitoring and evaluation on completion of housing construction projects in Kenya and finally evaluate the influence of stakeholder engagement in reporting and communication on the completion of housing construction projects in Kenya. The study is anchored on two theories: stakeholders’ theory and the Kanter theory of change. The study was grounded on descriptive survey design with a target population of 150 respondents who comprised of project managers, project architects, physical planners, and site employees. The sample size of the study was 108 respondents obtained using the Krejcie and Morgan table for estimating sample sizes. Quantitative data that was utilized in this study was collected using structured questionnaire with 24 Likert- type questions. Inferential statistics collected was examined through the Pearson’s Product Moment Correlation. Inferential data was analyzed using central tendency parameters such as mean, frequencies, percentages and standard deviation with the aid of Statistical Package for Social Sciences (SPSS), version 20.0. From the findings, this study establishes that there exists a significant relationship between stakeholders’ engagement in project design on completion of housing construction projects by r =0.244, (p-value< 0.01), there exists a significant relationship between stakeholder engagement in project execution and the completion of housing construction projects to an extent of r =0.244, (p-value< 0.01), there exists a significant positive relationship between stakeholder engagement in monitoring and evaluation and the completion of housing construction projects to an extent of r =0.244, (p-value< 0.01), finally there exists a positive significant relationship between stakeholder engagement in reporting and communication and completion of housing construction projects to an extent of r =0.244, (p-value< 0.01).

This study therefore contributes immensely to policy formulation and the growth of Project management discipline in general. The study provides a pedestal upon which policy formulation on stakeholder engagement in project work can be anchored. This study also provides the needed empirical evidence on the importance and usefulness of stakeholder engagement in project management as a discipline.

            Background of the Study

CHAPTER ONE INTRODUCTION

Stakeholder engagement is a fundamental principle in modern project management and development work in general. Currently, development of an integrated devolved system without the requisite mobilization of the participants in the society is termed as lack of involvement of the affected parties (Papa, 2016). Stakeholders’ engagement can be defined as the process through which all people affected either directly or indirectly by a project are involved in project implementation to safeguard their various interests. In the current study, it is largely understood as the process through which the members of the public who have direct or indirect interests in houses are involved in the implementation of housing projects (Alice, 2017). Before proceeding further, it would be imperative to appreciate the fact that stakeholder involvement and public participation have over the years became essential elements in project implementation in the country. Participation concept is therefore a fundamental condition in the execution of projects and programs.

Globally, the increasing research interest in stakeholder involvement has taken momentum. There is a growing rhetoric and recognition that stakeholders can and should influence the decision- making of development projects. The origination of stakeholder involvement was experienced in developed nations. According to Kobusingye, (2017) it is the categorization processes which empower citizens. Since the advent of modernization, stakeholders have been advocated in most parts of developed nations such as USA as a tool for improvement of urbanization environment and enriching performance of project interventions. Emergence of international movement in the early 1980s resulted to development of plans of the cities through process of public participation. A study conducted by Ruwa, (2016) emphasized on democratic rights of public participation despite government’s tendency to distort the formation of public decisions before the actual implementation process.

Recently, most developed countries such as USA, Denmark, Hong Kong and Brazil have effectively managed to practice this mechanism. Involvement of stakeholders in decision making in developed nations in the process of public participation indicates the immense role of this mechanism. This has often led to better project development and collaborative governance (Davis,

MacDonald and White, 2010). Additionally, there are different forms of stakeholder involvement such as public hearing, surveys, advisory committees and major exhibitions have been developed to meet the requirement of public participation process in developed countries. This ensures stakeholders are involved in identification initiation, planning, implementation and monitoring of projects (Coffey and Trigunarsyah, 2015). Failure to include stakeholders in project implementation especially at the early stages often affects projects negatively. This coupled with lack of knowledge among stakeholders and inadequate support from stakeholders necessitates for efficient stakeholder engagement. Project managers are making a lot of effort and deploying resources so as to compete to make their projects successful (Magassouba, Tambi, Alkhlaifat, & Abdullah, 2019). This involves completing the project on time, within budget and meeting product specifications

The concept of stakeholder engagement has taken root in most of the African countries including South Africa, Nigeria and Ghana. In Kenya, despite the quest for project success, development projects have continuously experienced cost and time overrun, poor quality performance unmet product specifications, unsatisfactory stakeholder needs and unmet organizational objectives (Ouwor, 2016). This phenomenon has greatly contributed to poor performance of project interventions. It has been documented that the lack of stakeholders’ involvement through public participation is a recipe for poor performance. In Kenya and a few African Countries, the concept of public participation has been constitutionalized and made mandatory.

Stakeholders engagement in public project stakes different forms and levels during project execution (Bryson, Quick, Slotterback, & Crosby, 2013). This lines up with the project predefinition and instigation requirements, organizational objectives through negotiation, consultation, partnership and project goal. Stakeholder involvement thereby relates to the process through which communities and people collaborate and cooperate in developing projects and programs( Hatipoglu, Alvarez, & Ertuna, 2016). Further, involvement of stakeholders in projects is a valuable concern for managers to address time, costs, and quality constraints associated with project portfolio management. Therefore, for a project team, to carry out an effective project and to meet organizational requirements, stakeholder involvement and contentment is the key to determine whether a project fails or succeeds.

            Statement of the Problem

The concept of stakeholder engagement has been examined by various commentators and scholars. Authors such as Eyiah-Botwe and Aigbavboa (2016) examined the importance of this concept in the construction of capital-intensive projects for enhancement of sustained construction. This implies the concept of stakeholders’ engagement in projects has been long recognized and promoted by both national governments and other non-governmental organizations. The World Bank has examined this concept and recommended its adoption across many projects. The concept of participation has been practiced in many projects and development initiatives for decades. Though, the concept is still not widely practiced, its importance in modern project programming needs to be quantified.

It has been document that most of the project implementing units find a lot of difficulties involving key stakeholders in decision making. In some instances, the involvement of stakeholders is assumed to have little impact on projects due to competences and capacities as well as lack of knowledge in running of the project. Therefore, interventions to involve stakeholders in decision making before the initiation of a project is crucial in determining the return on investments to projects and interventions. Nguyen and Skit more, (2009) researched on the impact of stakeholder’s management of infrastructure in the third world countries such as engineering firm owned by the state in Vietnam. From the study, it was evident that the highest impact on project was caused by stakeholders, followed by project managers.

This study therefore differs from other past studies in terms of focus and methodology. The study focuses on stakeholder involvement across the project cycle and sought to examine the element of stakeholder engagement holistically, during and after projects so as to increase their output and for sustainability of these projects. Stakeholders’ involvement would greatly impact project performance. Hence, this study sought to unravel the elements of stakeholder involvement in project design, formulation, execution and monitoring and evaluation, communication and reporting to provide quantifiable empirical data for policy formulation and research-based evidence.

            Purpose of the Study

This study sought to examine the influence of stakeholder engagement on completion of housing construction projects in Kenya.

            Objectives of the Study

The study’s objectives include;

  1. To establish influence of stakeholder engagement in project design on completion of housing construction projects in Kenya,
  2. To determine the influence of stakeholder engagement in project execution on the completion of housing construction projects in Kenya,
  3. To examine influence of stakeholder engagement in monitoring and evaluation on completion of housing construction projects in Kenya,
  4. To assess the influence of stakeholder engagement in reporting and communication on the completion of housing construction projects in Kenya.

            Research Questions

The study sought to answer the following questions;

  1. To what extent does the stakeholder engagement in project design influence the completion of housing construction projects in Kenya?
    1. At what level does stakeholder engagement in project execution influence the completion of housing construction projects in Kenya?
    1. How does stakeholder engagement in monitoring and evaluation influence the completion of housing construction projects in Kenya?
    1. How does stakeholder engagement in reporting and communication influence the completion of housing construction projects in Kenya?

            Significance of the Study

The current study is expected to impact policy formulation in the housing construction sector in Kenya by providing the much-needed empirical evidence to support policy development. There has been a great concern on the role of stakeholders at the local level for the policy makers and practitioners hence this study is of great importance. The study is also expected to provide an overview of the way things are at grass root level and even enable policy makers to pinpoint

ambiguities that might be there in the current systems so that they can formulate relevant policies to address them as a way of bringing out efficiency and effectiveness in government and county government funded projects such as construction of sporting facilities.

The study is also expected to inform different stakeholders especially policymakers on many facets of stakeholder’ involvement, engagement and participation in project design and formulation, project execution, project monitoring and evaluation and in project communication and reporting. The study was meant to foster the importance of stakeholder involvement in the participation of public projects so that to increase their productivity and performance.

            Limitation of the Study

The study was only limited to the Ngara housing project in Nairobi County, Kenya. The researcher encountered difficulties finding sufficient literature to inform study’s background due to a limited number of researches done on this area of stakeholders’ involvement on public participation and uptake of such projects in Kenyan counties, Africa and many parts of the developing world. However, the increased government allocation to county governments and enactment of devolved units, was a useful way to overcoming some of the challenges and enabled at great extent in bringing clarity on the research area.