Influence of Supplier Relationship on Performance of Affordable Housing Project: A Case of Nairobi County, Kenya

Ajang Mabior, Dr. Duncan Ndung’u

Abstract


Affordable housing projects faced significant challenges worldwide, including cost overruns of up to 183%, affecting nine out of ten residential housing projects. In Nairobi County, Kenya, numerous affordable housing projects were stalled or remained incomplete, worsening housing shortages. This study aimed to examine the influence of supplier relationships on project performance. The research was guided by the stakeholder theory and employed a descriptive survey research design to analyze the perspectives of project managers, procurement staff, contractors, and housing officials. Data were collected through structured questionnaires. Quantitative and qualitative data were analyzed using descriptive statistics and regression analyses. The study found that the performance of affordable housing projects in Nairobi County is positively influenced by strong supplier relationships (r = 0.634, p < 0.01). Supplier relationships significantly impacted project performance, with strong partnerships leading to timely deliveries and cost efficiency. However, challenges in collaboration for innovation and communication for dispute resolution were noted, indicating areas for improvement. The study recommends that project managers and procurement officers focus on strengthening supplier relationships by establishing clear Key Performance Indicators and improving communication channels.

Keywords: Supplier Relationship, Performance, Affordable Housing Projects


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References


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