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  • Moderating Effect of External Environment on the Relationship Between Risk Management and Project Performance of County-Funded Construction Projects
     
    ►Julius Mathenge Kabue(Corresponding Author)
      kabuetaiyana@gmail.com
     https://orcid.org/0009-0001-9613-3136  
          ​
    ► Christoper Gakuu
      cmgakuu@uonbi.ac.ke 
    https://orcid.org/0009-0000-7864-5501

    ►Harriet Kidombo
      hkidombo@uonbi.ac.ke 
    https://orcid.org/0009-0001-5560-5619

    ►Augustine Mwangi
     augustine.gatotoh@uanbi.ac.ke 
    https://orcid.org/0000-0002-2674-7570

    Received: 13 January, 2025
    Final Revision: 22 June, 2025
    Accepted: 25 June, 2025
    Published:23 August,2025
     
    Abstract
    This study investigates the moderating effect of the external environment on the relationship between risk management and project performance in county-funded construction projects in Nakuru County, Kenya. The research problem encompasses an overview of external environmental factors, including technological advancements, political conditions, social dynamics, and physical surroundings. The literature review further emphasizes the complex interplay between project performance and risk management in the construction sector, highlighting the significant influence of the external environment. The study is grounded in systems theory and contingency theory, which provide the theoretical framework for contextual analysis.
    A predictive research design was employed to enable a systematic examination of the causal relationship between project risk management strategies and construction project performance. Both quantitative and qualitative analysis techniques were utilized for descriptive evaluation of project outcomes. Data were collected from 314 respondents, including contractors, subcontractors, project engineers, finance managers, and county project managers, using structured questionnaires and semi-structured interviews.
    The findings indicate that risk management variables account for 58.9% of the variance in project performance. The inclusion of external environmental factors significantly increased the explained variance (ΔR² = .021, p < .001). Hierarchical multiple regression analysis further revealed that the external environment significantly moderates the relationship between risk management and project performance, explaining an additional 3.3% of the variance (ΔR² = .033, p < .001). The strong influence of the external environment, particularly the moderate to high impact of technological, regulatory, political, and financial factors, underscores the necessity for adaptive risk management strategies.
    The study concludes that effective risk management strategies must be tailored to specific external contexts, especially in more challenging environments. This research contributes to both theory and practice by underscoring the importance of integrating environmental considerations into project risk management and by offering recommendations to enhance the performance of county-funded construction projects.
     
    Keywords:Risk management, project performance, external environment, construction projects, county government, moderating effect.

    Pages:40-52 :: Download-View
 
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