Effect Of Risk Management Strategies On Project Performance Of Small and Medium Information Communication Technology Enterprises In Nairobi, Kenya

Abstract

The main objective of this study is to establish the effects of risk management strategies on the project performance of small and medium information communication technology (ICT) enterprises in Nairobi, Kenya. The study was governed by four theories including Logical Framework Approach, Project Risk Analysis and Management model, Network Theory and Portfolio theory. The independent variables were the risk management strategies while dependent variable was the project performance of the SME ICT project. A descriptive research design was adopted. Target population was 48 ICT SMEs in Nairobi, Kenya. The study adopted random sampling technique to select sample size of the project staff in the target population. Primary data was collected using a questionnaire which was self-administered through drop and pick questionnaires to sampled members of the employees working in the ICT SMEs. The data was then summarized, coded and tabulated. A multiple regression model was applied to determine effects of risk management strategies on project performance of ICT SMEs in airobi, Kenya. An effective risk management practices encourages the ICT enterprises to identify and quantify risks and to consider risk containment and risk reduction policies. The study established that there existed a positive relationship between risk management strategies affecting project performance and ICT project performance for SMEs in Kenya and were statistically significant at 0.05 level. The study concluded that many (ICT) enterprises in Nairobi, Kenya have realized the importance of risk management practise in ICT project management to achieve process success. They carry out risk management to maximize the performance. ICT enterprises that manage risk effectively and efficiently enjoy financial savings and greater productivity, improved success rates of new projects and better decision making.