INFLUENCE OF PROJECT RISK MANAGEMENT ON PERFORMANCE OF AGRICULTURAL PROJECTS IN NAKURU COUNTY; KENYA

Otieno Fred Simon, Dr. Josephine Mutiso

Abstract


This study sought to examine the influence of project risk management on performance of agricultural projects in Nakuru County. The study was guided by the following specific research objectives; to determine the influence of project risk identification practices on performance of agricultural projects in Nakuru County; to examine the influence of project risk assessment practices on performance of agricultural projects in Nakuru County. The theories that were used in this study are the Queuing theory and contingent theory. Descriptive research design was used to guide this study. The sample size composed of 116 agricultural projects drawn from the 11 sub-counties in Nakuru County. Respondents from each stratum were picked on a random basis using the simple random method in order to eliminate bias as the method gives each member a fair chance of selection. This study used Cronbach’s Alpha coefficient to test the reliability of the research questionnaires. After data was collected from the field, the questionnaires were checked for completeness and hence calculate the response rate of the questionnaires. The data was coded and entered into statistical package for social sciences (SPSS) for analysis. Both descriptive and inferential statistics was used in meeting the study objectives. The entire data analysis was presented by the use of tables and pie charts. This study contributes to the world of literature in the subject of project management which was the basis of future researchers and academicians in this area. An excellent response rate of 93.97 percent was realized. It was established that most of the project risk management indicators have positive impact on performance of the agricultural projects. The study further adopted a regression analysis to determine the relationship between the variables at 5 percent confidence level of significance. The study findings showed that the variables had a significant influence on performance of the agricultural projects. The study recommended that a similar research should be conducted with an aim of investigating the determinates of project risk management on the performance of agricultural projects with other variables or of other firms in other sectors, including other counties in Kenya. The findings showed that 31.7 percent of the performance is explained by the four variables while 30.6 can be accounted by other factors captured by the standard error.

Key Words: Project Risk Identification, Project Risk Assessment, Project Risk Management, Performance


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