HUMAN RESOURCE CAPABILITIES AND PERFORMANCE OF CONSTRUCTION FIRMS IN KENYA
Kanalo J. Akumu - Jomo Kenyatta University of Agriculture and Technology, Kenya
Professor. Margaret A. Oloko (PhD) - Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Jared O. Deya (PhD) - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The success of any business firm depends on the effective and efficient engagement of its human resource capabilities and in every project-based industry like the construction industry, firm performance is linked to the capabilities of its human resources. Human capital theory support human resource capabilities and firm performance and anchored on the objective of study to bring fore review of human resource capabilities' influence on firm performance. The purpose of this study was to establish the influence of human resource capabilities on performance of construction firms in Kenya. The study used descriptive research design and adopted the positivist philosophy approach. The target population in this study was 357 firms registered with BORAQS and 30 Contractor best performing firms in the construction industry in Kenya. Stratified sampling technique was considered with a sample size of 189 firms. The study substantially depended on primary data sources on self-administered questionnaire as a source of data and data collected were both qualitative and quantitative. The collected data were then keyed into SPSS and analyzed using descriptive and inferential statistics. The study adopted descriptive, correlation research designs and inferential statistics were also used to analyze the obtained data. Multiple linear regression revealed significant statistical relationship between human resource capabilities effect on firm performance, (R2 =0.201, p=<0.001). Correlation analysis revealed that there was a positive significant moderate linear relationship between human resource capabilities and performance of construction firms (r = 0.455, p = <0.001). This was indicated by significant p-values less than 0.05 at 95% confidence level. The qualitative data from respondents revealed that human resource capabilities had effect on performance (M= 4.42) and noted inadequate of skilled competent labour in the industry. Hypothesis testing noted that human resource capabilities had significant statistical effect on performance of construction firms in Kenya therefore null hypothesis was rejected. The research study recommended that each firm needed to pay more attention, prioritize their strategies on capacity development, recruitment and compensation to enhance better performance and urged for introduction of measures to reduce costs of production through lean thinking concept.