RISK MANAGEMENT PRACTICES AND PERFORMANCE OF MINING PROJECTS IN KWALE COUNTY, KENYA
Abstract
The purpose of this research was to examine the influence of risk management practices on the performance of mining projects in Kwale County, Kenya. Specifically, the research examined the influence of risk identification practice and risk analysis practice on the performance of mining projects in Kwale County, Kenya. The theoretical framework consisted of the enterprise risk management theory, systems theory, contingency theory and complexity theory. Drawing on the positivist research philosophy, the research utilized the quantitative non-experimental research methodology. The research employed the correlational cross-sectional survey design for testing noncausal relationships among variables. The proportionate stratified random sampling technique was used to select a sample size of 128 project management staff from a target population of 188 project management staff in charge of the mining projects of the 7 mining companies in Kwale County, Kenya. A pilot study was conducted to test the validity and reliability of the constructed survey questionnaire. A self-administered structured questionnaires was used to collect primary data. The research utilized the cross-sectional survey-based approach. Through the drop and pick method, the survey questionnaires were hand delivered to the project management staff of the mining companies. The collected data was processed and entered into the statistical package for social sciences (SPSS) version 26 to create a data sheet used for statistical analysis. The Pearson’s correlation results indicated that risk identification practice and risk analysis practice had positive and significant relationship with performance of mining projects in Kwale County, Kenya. The multiple regression results showed that risk identification practice and risk analysis practice had positive and significant influence on performance of mining projects in Kwale County, Kenya. The mining project managers should recognize the importance of risk management practices and apply them to their projects to minimize risks for successful projects in the mining industry. The policy makers should initiate policy review to motivate project managers recognize the importance of risk management practices.
Key words: Firm performance, Risk analysis capability, Risk identification capability, Kenya
CITATION: Muthui, M. N., & Kising’u, T. M (2024). Risk management practices and performance of mining projects in Kwale County, Kenya. The Strategic Journal of Business & Change Management, 11 (1), 171 – 197. http://dx.doi.org/10.61426/sjbcm.v11i1.2847
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i1.2847
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