An Evaluation of the Organizational Performance of Local Contractors in Kenya.

  • Shadrack Mutungi Simon Jomo Kenyatta University
  • Benard Mugwima Njuguna, PhD Jomo Kenyatta University
  • Titus Peter Kivaa, PhD Jomo Kenyatta University
Keywords: dimensions, evaluation, Kenya, local contractors, organizational, performance
Share Article:


Organizational performance is the ultimate measure of the success of any local contractor. It involves the analysis of a firm’s performance measured against its goals and objectives. Whilst it is generally agreed that the organizational performance of local contractors is insufficient, such a notion is arbitrary and most of the time based on anecdotal evidence. The purpose of this research was therefore to establish the level of organizational performance of local contractors here in Kenya. A survey research design was adopted. A questionnaire with the evaluation criteria of organizational performance was used to collect data. The sampling frame included all NCA1, NCA2 and NCA3 contractors. In order to avoid bias in the evaluation process, consultants were included in the survey to obtain an external perspective. The level of organizational performance in local contractors was established at three levels. First, 50 measurable indicators were used. The highest performing indicator was found to be the durability of projects executed by local contractors (mean=7.52). The lowest indicator was established to be the net profit margin of contractors (mean=5.34). The second level involved establishing the level of organizational performance based on the 10 dimensions identified from the literature review. This was achieved by calculating the means of the respective indicators. The best performing dimensions of organizational performance were found to be quality of products (mean=7.308) and client satisfaction (mean=6.923). The least performing dimensions were found to be profitability (mean=5.406) and employee satisfaction (mean=5.683). The final level involved establishing the overall organizational performance of local contractors. This was achieved by calculating the mean of the ten dimensions. The organizational performance of local contractors was established to have a percentage score of 63.74%. This was found to be moderately high meaning there was still plenty of room for improvement.


Download data is not yet available.


Adam, E. E. (1994). Alternative quality improvement practices and organization performance. Journal of Operations Management, 12(1), 27–44.

Al-Damen, R. A. (2017). The impact of Total Quality Management on organizational performance Case of Jordan Oil Petroleum Company. International Journal of Business and Social Science, 8(1), 192–202.

Alarcon, L. F., Grillo, A., Freire, J., & Diethelm, S. (2001). Learning from collaborative benchmarking in the construction industry. In 9th Conference of International Group for Lean Construction. Singapore.

Byremo, C. (2015). Human Resource Management and Organisational Performance. Unpublished Masters Thesis, University of Oslo.

Chandler, A. (1962). Strategy and structure. Cambridge: MIT Press.

Cherrington, D. J. (1989). Organizational behavior: The management of individual and organizational performance. Boston: Allyn and Bacon.

Cornerstone Learning. (2017). The Evolution of Organizational Performance. Retrieved March 8, 2020, from

Department of Trade and Industry. (2002). Construction Products Industry Key Performance Indicators Handbook. London: Construction Products Association.

Draghici, A., Popescu, A.-D., & Gogan, L. M. (2014). A Proposed Model for Monitoring Organizational Performance. Procedia - Social and Behavioral Sciences, 124(2014), 544–551.

Etzioni, A. (1960). Two approaches to organizational analysis: A critique and a suggestion. Administrative Science Quarterly, 5(2), 257–278.

Haddadi, F., & Yaghoobi, T. (2014). Key indicators for organizational performance measurement. Management Science Letters, 4(9), 2021–2030.

Hajjat, M. M., & Hajjat, F. (2014). The Effect of Product Quality on Business Performance in Some Arab Companies. Journal of Emerging Trends in Economics and Management Sciences (, 5(5), 498–508.

Harrison, J. S., & Freeman, R. E. (1999). Stakeholders, social responsibility, and performance: Empirical evidence and theoretical perspectives. The Academy of Management Journal, 42(5), 479–485.

Hatush, Z. A. (1996). Contractor Selection using Multiattribute Utility Theory. Unpublished PhD Thesis, University of Salford, Salford, UK.

Jenatabadi, H. S. (2015). An Overview of Organizational Performance Index: Definitions and Measurements The electrochemical capacitive behavior of polymer-based nanocomposites View project An Overview of Organizational Performance Index: Definitions and Measurements, (May).

Kaganski, S., Majak, J., Karjust, K., & Toompalu, S. (2017). Implementation of Key Performance Indicators Selection Model as Part of the Enterprise Analysis Model. Procedia CIRP, 63, 283–288.

Katz, D., & Kahn, R. L. (1978). The social psychology of organizations. New York: Wiley.

Khatun, K. M., Islam, M. A., & Tehseen, S. (2014). Determinants of organizational performance: A case study on an electronic company in Malaysia. Advances in Environmental Biology, 8(9), 440–449.

Lawrence, P., & Lorsch, J. (1969). Organization and Environment: Managing Differentiation and Integration. Boston: Harvard University Press.

Lorsch, J. (1970). Introduction to the structural design of organizations: Organizational structure and design.

Lupton, T. (1977). Organizational Behavior and Performance. London: Macmillan Press.

Moramati Foundation. (2011). The Kenyan Construction Industry. Nairobi.

Mugenda, O. ., & Mugenda, A. . (2003). Research methods: Quantitative and Qualitative Approaches. Nairobi: African Centre for Technology Studies.

Murphy, G. B., Trailer, J. W., & Hill, R. C. (1996). Measuring performance in entrepreneurship research. Journal of Business Research, 36(1), 15–23.

Myšková, R., & Hájek, P. (2017). Comprehensive assessment of firm financial performance using financial ratios and linguistic analysis of annual reports. Journal of International Studies, 10(4), 96–108.

NCA. National Construction Authority Draft Regulations, 84 § (2012). Kenya. Retrieved from

Nudurupati, S., Arshad, T., & Turner, T. (2007). Performance measurement in the construction industry: an action case investigating manufacturing methodologies. Computers & Industrial Engineering, 58, 667–676.

Nyangilo, A. O. (2012). An assessment of the organization structure and leadership effects on construction projects’ performance in Kenya: a case study of public building projects within Nairobi region. Unpublished Masters Thesis, University of Nairobi.

Peterson, W., Gijsbers, G., & Wilks, M. (2003). An organizational performance assessment system for agricultural research organizations: concepts, methods, and procedures (ISNAR Research Management Guidelines No. 7).

Pounder, J. (1999). Organizational effectiveness in higher education. Educational Management Administration & Leadership, 27(4), 389–400. Retrieved from

Puri, D., & Tiwari, S. (2014). Evaluating The Criteria for Contractors’ Selection and Bid Evaluation. International Journal of Engineering Science Invention, 3(7), 44–48. Retrieved from

Rahman, A., & Alzubi, Y. (2015). Exploring Key Contractor Factors Influencing Client Satisfaction Level in Dealing with Construction Project: an Empirical Study in Jordan. International Journal of Academic Research in Business and Social Sciences, 5(12), 109–126.

Ramirez, R. R., Alarcon, L. F. C., & Knights, P. (2004). Benchmarking system for evaluating management practices in the construction industry. Journal of Management in Engineering, 20(3), 110–117.

Robbins, S. P. (1987). Organizational Theory: Structure, Design, and Application. San Diego: Prentice-Hall.

Rolstadas, A. (1998). Entreprise Performance Measurement. International Journal of Operations and Production Management, 18, 9–10.

Santos, J. B., & Brito, L. A. L. (2012). Toward a subjective measurement model for firm performance. BAR - Brazilian Administration Review, 9(SPL. ISS), 95–117.

Schermerhorn, J. R., Hunt, J. G., Osborn, R. N., & Osborn, R. (2004). Core concepts of organizational behavior. London: John Wiley & Sons Inc.

Spacey, J. (2017). 7 Types of Business Efficiency. Retrieved September 11, 2020, from

Thompson, J. (1967). Organization in Action. New York: McGraw-Hill.

Wachira, I. N. (1999). Labour productivity in the Kenyan construction industry. In P. Bowen & R. Hindle (Eds.), CIB W55 & W65 Joint Triennial Symposium (pp. 1–9). Cape Town. Retrieved from

Wainaina, W. (2020, December 5). Local contractors starved of jobs as foreign firms reap big. The Standard. Retrieved from

Waweru, P. K., & Omwenga, J. (2015). The Influence of Strategic Management Practices on Performance of Private Construction Firms in Kenya. International Journal of Scientific and Research Publications, 5(6), 1–36. Retrieved from

8 March, 2021
How to Cite
Simon, S., Njuguna, B., & Kivaa, T. (2021). An Evaluation of the Organizational Performance of Local Contractors in Kenya. East African Journal of Engineering, 3(1), 1 - 21.