Moderating Effect of Corporate Governance on The Relationship between Strategy Implementation and the Performance of Road Projects by Kenya Rural Roads Authority

Abstract

The purpose of the study is to establish whether corporate governance moderates the relationship between strategy implementation and the performance of road projects by Kenya Rural Roads Authority. The study employs a multi-theoretical approach, integrating Resource-Based Theory, Agency Theory, Contingency Theory of Leadership, Legitimacy Theory, Theory of Constraints, Enterprise Risk Management, Technology Acceptance Model, and Communication Theory. The study utilized a mixed-methods approach, with pragmatism as the chosen research philosophy. The study focused on 140 Development Road Projects by KeRRA. The sample comprised 208 individuals, including 104 Strategy Implementation Officers (SIOs) and 104 Contractors’ Chief Executive Officers (CEOs). This was determined using the Solvin 1974 formula due to authority duality. The Director General of KeRRA and the Secretary to the Board of Directors were also part of the target population. The research employed a mixed-methods approach, utilizing a sequential explanatory design to investigate the relationship between governance practices, technology adoption, resource availability, communication, and road project outcomes at the Kenya Rural Roads Authority (KeRRA). Data collection involved questionnaires and interviews with strategy implementation officials and the Director General, utilizing cluster, stratified, and deliberate sampling for both qualitative and quantitative data. Statistical analyses, including Pearson correlation and regression analysis were performed on SPSS Version 27. The study revealed that corporate governance practices have a statistically significant moderating effect on the influence of strategy implementation on the performance of road projects by Kenya Rural Roads Authority