A multidimensional analysis of organisational performance drivers among local construction contractors in Kenya

Abstract

This study investigates the influence of ten organisational determinants on ten dimensions of performance among local contractors in Kenya’s construction sector. Grounded in the Resource-Based View and Contingency Theory, the research adopts a multidimensional framework to assess profitability, growth, technical capability, business efficiency, employee satisfaction, financial stability, client satisfaction, product quality, managerial capability, and safety performance. Data were collected from 378 valid responses, using structured questionnaires administered to contractors and consultants. Multiple regression analysis was employed to model the relationships between each performance dimension and the ten determinants, culminating in a composite model of overall organisational performance. Findings reveal that strategic planning, contractor innovativeness, supplier effectiveness, organisational structure, and quality of service are the most consistent and significant predictors across performance dimensions. The composite model yielded an adjusted R² of 0.819, indicating strong explanatory power. External factors such as government support and competition showed limited but context-specific influence, while performance measurement practices exhibited paradoxical effects. The study underscores the primacy of internal strategic and operational capabilities in driving performance and offers actionable recommendations for contractors, policymakers, and industry stakeholders. These include strengthening planning systems, supporting innovation, optimising supplier networks, and reforming performance measurement frameworks to support strategic learning and continuous improvement.