EFFECT OF SELECTED FACTORS ON IMPLEMENTATION
OF CAPITAL EXPENDITURE PROJECTS OF AIRTEL
KENYA LIMITED WITHIN NAIROBI COUNTY – KENYA
BY
JOSHUA MUMO NZUKI
UNITED STATES INTERNATIONAL UNIVERSITY AFRICA
SUMMER 2020
2
EFFECT OF SELECTED FACTORS ON IMPLEMENTATION OF
CAPITAL EXPENDITURE PROJECTS OF AIRTEL KENYA LIMITED
WITHIN NAIROBI COUNTY – KENYA
BY
JOSHUA MUMO NZUKI
A Research Project Report Submitted to the Chandaria School of Business
in Partial Fulfilment of the Requirement for the Degree of Global Masters
in Business Administration (GMBA)
UNITED STATES INTERNATIONAL UNIVERSITY – AFRICA
SUMMER 2020
ii
STUDENT’S DECLARATION
I, the undersigned, declare that this is my original work and has not been submitted to any other
college, institution or university other than the United States International University – Africa
for academic credit.
Signed: Date:
Student: Joshua Mumo Nzuki (659928)
This research project report has been presented for examination with my approval as the
appointed supervisor.
Signed: Date:
Lecturer: Dr. Fredrick Selefano Odoyo
Signed: Date:
Dean: Chandaria School of Business
iii
COPY RIGHT
© Joshua Mumo Nzuki, 2020
All rights reserved including rights of reproduction in whole or part in any form without the
prior permission of the author or United States International University- Africa or Office of
the Deputy Vice Chancellor Academic Affairs.
iv
ABSTRACT
The purpose of this study was to determine the effect of selected factors on implementation of
capital expenditure projects of Airtel Kenya Limited. The research questions are: how does the
resource allocation affect the implementation of capital expenditure projects, how does the
leadership competence affect the implementation of capital expenditure projects, and how does
the effective communication affect the implementation of capital expenditure projects.
This study adopted a descriptive survey research design. The population of the study was
composed of 83 top – level managers, middle – level managers, and supervisors of Airtel
Kenya Limited in Nairobi County. Stratified sampling technique was adopted to select a
sample size of 66. The study primary data was collected using closed ended structured
questionnaires. Data was analyzed for descriptive statistics and inferential statistics using
Statistical Package for Social Sciences (SPSS). Findings were presented using tables and
figures.
The findings of the resource allocation indicated that 61% of the variance could be explained
by the variables (leadership style, project flexibility, and project visibility). Thus, for the
regression coefficient the equation for resource allocation was: Resource Allocation ꞊ 0.531
0.073 Leadership Style + 0.707 Project Flexibility + 0.373 Project Visibility. Therefore, the
regression equation indicated that leadership style, project flexibility, and project visibility had
a positive and insignificant influence on implementation of capital expenditure projects.
The findings of leadership competence indicated that 64% of the variance could be explained
by the variables (managerial competence, intellectual competence, and emotional
competence). Thus, the regression equation for leadership competence was: Leadership
Competence ꞊ 0.094 + 0.438 Managerial Competence + 0.209 Intellectual Competence +
0.264 Emotional Competence. Therefore, regression equation indicated that managerial
competence, intellectual competence, and emotional competence had a positive and significant
influence on implementation of capital expenditure projects.
The findings of effective communication indicated that 78.4% of the variance could be
explained by the variables (communication relationship, communication behavior,
communication design). Thus, the regression coefficient for effective communication was:
v
Effective Communication ꞊ 0.534 + 0.412 Communication Relationship + 0.420
Communication Behavior + 0.052 Communication Design. Therefore, the regression equation
indicated that communication relationship, communication behavior, and communication
design had a positive and significant influence on implementation of capital expenditure
projects.
Thus, on resource allocation, the study concluded that as the project schedule changes, the
resource plan must also be flexible enough to adjust as these changes occur. On leadership
competence, the study concluded that as for the top managers in the information and
telecommunication industry, their IQ, and their ability to bring the project to a successful
conclusion, especially implementation part, relies heavily on their critical analysis abilities and
judgment, their cognitive ability, and their strategic vision. On effective communication, the
study concluded that, a successful project manager can only maximize the effectiveness of
communication within the team by being prepared to lead by example. Thus, a leader has to
be present, and be prepared to communicate with all stakeholders at their respective levels.
Therefore, on resource allocation the study recommended that resource allocation should help
to control all the workload. This, as a result, contributed to team’s effectiveness to achieve
satisfying and exhaustive project. On leadership competences, the study recommended that top
managers should relies heavily on their critical analysis abilities and judgment, their cognitive
ability, and their strategic vision to bring the project to a successful conclusion especially on
implementation part. On effective communication, the study recommended that effective
communication should be about how projects are created, directions decided and outcomes
determined through dialogue between project managers and project stakeholders that
ultimately shapes the scope of projects.
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ACKNOWLEDGEMENT
I wish to extend my gratitude to all the people who have offered their support and assistance.
In particular, I thank my research project supervisor, Dr. Odoyo, for offering a lot of guidance
and assistance in coming up with this research project report. Gratitude also to my family for
their understanding and support during the many hours I was doing the research project. I
cannot forget also to acknowledge the reference of other writers for their works which have
assisted me in coming up with the research project report. Lastly, I would like to thank the
Almighty God for providing the resources and energy to make this research project report
become a reality.
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DEDICATION
This work is dedicated to my family whose encouragement and support gave me the drive to
carry on and my friends who are my inspiration and mentors.
viii
TABLE OF CONTENTS
STUDENT’S DECLARATION ............................................................................................. ii
COPY RIGHT ........................................................................................................................ iii
ABSTRACT ............................................................................................................................ iv
ACKNOWLEDGEMENT ..................................................................................................... vi
DEDICATION....................................................................................................................... vii
TABLE OF CONTENTS .................................................................................................... viii
LIST OF TABLES ...................................................................................................................x
LIST OF FIGURES ............................................................................................................... xi
LIST OF ABBREVIATIONS .............................................................................................. xii
CHAPTER ONE ......................................................................................................................1
1.0 INTRODUCTION..............................................................................................................1
1.1 Background of the Study .....................................................................................................1
1.2 Statement of the Problem .....................................................................................................7
1.3 Objective of the Study .........................................................................................................9
1.4 Specific Objectives ..............................................................................................................9
1.5 Significance of the Study .....................................................................................................9
1.6 Scope of the Study .............................................................................................................10
1.7 Definitions of the Terms ....................................................................................................10
1.8 Chapter Summary ..............................................................................................................11
CHAPTER TWO ...................................................................................................................12
2.0 LITERATURE REVIEW ...............................................................................................12
2.1 Introduction ........................................................................................................................12
2.2 Resource Allocation on Implementation of Capital Expenditure Projects ........................12
2.3 Leadership Competence on Implementation of Capital Expenditure Projects ..................17
2.4 Effective Communication on Implementation of Capital Expenditure Projects ...............22
2.5 Chapter Summary ..............................................................................................................28
ix
CHAPTER THREE ...............................................................................................................29
3.0 RESEARCH METHODOLOGY ...................................................................................29
3.1 Introduction ........................................................................................................................29
3.2 Research Design.................................................................................................................29
3.3 Population and Sampling Design .......................................................................................29
3.4 Data Collection Methods ...................................................................................................32
3.5 Research Procedures ..........................................................................................................32
3.6 Data Analysis Methods ......................................................................................................33
3.7 Chapter Summary ..............................................................................................................33
CHAPTER FOUR ..................................................................................................................34
4.0 RESULTS AND FINDINGS ...........................................................................................34
4.1 Introduction ........................................................................................................................34
4.2 General Information ...........................................................................................................34
4.3 Resource Allocation on Implementation of Capital Expenditure Projects ........................39
4.4 Leadership Competence on Implementation of Capital Expenditure Projects ..................43
4.5 Effective Communication on Implementation of Capital Expenditure Projects ...............48
4.6 Chapter Summary ..............................................................................................................53
CHAPTER FIVE ...................................................................................................................54
5.0 DISCUSSION, CONCLUSION AND RECOMMENDATION ...................................54
5.1 Introduction ........................................................................................................................54
5.2 Summary ............................................................................................................................54
5.3 Discussion ..........................................................................................................................55
5.4 Conclusions ........................................................................................................................64
5.5 Recommendations ..............................................................................................................65
REFERENCES .......................................................................................................................67
APPENDICES ........................................................................................................................73
APPENDIX I: COVER LETTER ........................................................................................73
APPENDIX II: RESEARCH QUESTIONNAIRE ..............................................................74
x
LIST OF TABLES
Table 3.1: Population Distribution ...........................................................................................30
Table 3.2: Sample Distribution ................................................................................................31
Table 4.1: Cronbach’s Alpha ...................................................................................................35
Table 4.2: Respondents Gender ............................................... Error! Bookmark not defined.
Table 4.3: Respondents Age .................................................... Error! Bookmark not defined.
Table 4.4: Respondents Department ........................................ Error! Bookmark not defined.
Table 4.5: Respondents Experience ......................................... Error! Bookmark not defined.
Table 4.6: Respondents Position .............................................. Error! Bookmark not defined.
Table 4.7: Leadership Style ..................................................... Error! Bookmark not defined.
Table 4.8: Project Flexibility ................................................... Error! Bookmark not defined.
Table 4.9: Project Visibility ..................................................... Error! Bookmark not defined.
Table 4.10: Correlation for Resource Allocation ..................... Error! Bookmark not defined.
Table 4.11: Model Summary for Resource Allocation ............ Error! Bookmark not defined.
Table 4.12: Regression Coefficient for Resource Allocation .. Error! Bookmark not defined.
Table 4.13: Managerial Competence ....................................... Error! Bookmark not defined.
Table 4.14: Intellectual Competence ....................................... Error! Bookmark not defined.
Table 4.15: Emotional Competence ......................................... Error! Bookmark not defined.
Table 4.16: Correlation for Leadership Competence ............... Error! Bookmark not defined.
Table 4.17: Model Summary for Leadership Competence ...... Error! Bookmark not defined.
Table 4.18: Regression Coefficient for Leadership Competence .......... Error! Bookmark not
defined.
Table 4.19: Communication Relationship ............................... Error! Bookmark not defined.
Table 4.20: Communication Behavior ..................................... Error! Bookmark not defined.
Table 4.21: Communication Design ........................................ Error! Bookmark not defined.
Table 4.22: Correlation for Effective Communication ............ Error! Bookmark not defined.
Table 4.23: Model Summary for Effective Communication ... Error! Bookmark not defined.
Table 4.24: Regression Coefficient for Effective Communication ....... Error! Bookmark not
defined.
xi
LIST OF FIGURES
Figure 4.1: Respondents Gender ..............................................................................................35
Figure 4.2: Respondents Age ...................................................................................................36
Figure 4.3: Respondents Department .......................................................................................37
Figure 4.4: Respondents Experience........................................................................................38
Figure 4.5: Respondents Position ............................................................................................39
xii
LIST OF ABBREVIATIONS
AKL Airtel Kenya Limited
AMT Advanced Manufacturing Technology
CSF Critical Success Factors
ICT Information Communication and Technology
IPMA International Project Management Association
ISP Internet Service Providers
KDN Kenya Data Networks
ROI Return on Investment
xiii
1
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Study
Project refers to the set of multifaceted activities which are constrained by cost, time and set
requirements to satisfy clients’ needs (Bakar, 2011). According to Pinto and Slevin (2012) the
success in project was to achieve the requisite prospect of the stakeholders and accomplishing
its projected motive. The success in projects could be attributed to a multifaceted and
repeatedly deceptive construct. However, it was of essential importance to successful
implementation of the project. They argued that project success required creating a proper
planned project schedule as well as acknowledging factors which were key to project success.
It helped the project manager and other concerned parties to make decisions right towards
project success. Sanvido (2010) argued that in order for the project to be successful positive
expectations for those participating in the project must be met, whether or not owner, planner,
engineer, contractor or operator. Nevertheless, these expectations were unique to every party
concerned.
In the project-oriented organization, an employee often played a dual role: a line unit specialist
and a project team member. Employee could also participate in several projects in parallel.
Thus, the problem of multiple subordination of a project team member occurred, as well as the
related difference of interests between superiors (competing for employee’s competencies and
time). This might result in difficulties with an employee’s work time organization and his/her
efficiency in projects and in regular daily duties (Rekola et al., 2012). In the case of projects,
it was difficult to develop a permanent list of activities and competencies required of team
members. Projects represented a unique and one-off activity, which also made it difficult to
manage knowledge in such circumstances (accumulated it, applied it in subsequent projects -
with different staff composition).
It was worth mentioning that there were two dimensions of each project team functioning: the
task dimension and the social dimension. The first one was related to the activities performed
by the project team consisting of carrying out the project through its life cycle. The second
one, in turned, involved developing substantive, interpersonal psychological and social
2
relationships in a team. The task and social dimensions of a project team were interrelated.
A change in one produces a change in the other (Fujishin, 2007).
Even though projects could be implemented in a line unit by specialists representing one field
of knowledge (the organization of an advertising campaign by a marketing team, where the
department head was also the project manager), however, the interdisciplinary requirement of
contractors was more frequent in the definition of a project team or a project itself. In the
functional structure, projects could be implemented by setting up a dedicated interdisciplinary
project team. Such a team consisted of line unit workers, delegated to work in the project on
a temporary basis, or for the entire period of its implementation (full-time or part-time). The
project manager was usually the line manager of this unit which took the largest part in the
project execution. In turned, the dominant type of organizational structure – according to
Ansell (1993) – was the matrix structure.
A project team was primarily a much more diverse team in terms of employees’ characteristics
(specialization, terminology, work culture). This required developing, for each individual
project, the rules regarding the way of team work, the decision-making process, resolving
conflicts, reporting on work progress and methods for making current administrative decisions
(Wysocki, 2014). Depending on the complexity of the expected project outcomes the adequate
project teams would vary in sizes. Both long-term, the so-called permanent enterprise staff,
and the temporarily involved employees (e.g., within the framework of employee leasing)
could take part in a project. The larger the team and the more diversified employment forms,
the more difficult it was to find out about and to reconcile the expectations of its individual
members.
Project implementation consisted of carrying out the activities with the aim of delivering the
outputs and monitoring progress compared to the work plan (Alinaitwe & Ayesiga, 2013). Lee,
Hong, Katerattanakul and Kim (2012) show that to implement a project means to carry out
activities proposed in the application form with the aim to achieve project objectives and
deliver results and outputs. Its success depends on many internal and external factors. The
project management has to have an efficient management system and always has to be flexible
to current needs and changed situations, as the project is rarely implemented exactly according
to the initial plan.
3
Project implementation involved three types of activities: operational (basic) activities,
supporting (auxiliary) activities and managerial (directing) activities. The first type of
activities, that was operational ones consisted of transforming project input data into an
expected result. These activities were directly related to the development of the project subject.
They involved operational project-oriented activities consisting of preparing the description of
the project subject (usually in the form of project documentation) and executive activities
focused on material realization of the project subject. The second type of activities, the
supportive ones served as a backup for operational and managerial actions by creating adequate
conditions for their efficient and effective implementation. They cover, e.g., the legal type of
project execution support. The third type of activities referred to managerial tasks consisting
of harmonizing operational and supporting activities. The latter was strictly connected with
project team management. This team type was characterized by the following main features: it
functions in a periodic mode; it could have a simple or a complex hierarchical structure; and it
was a sub-structure developed and based on the framework organizational structure of an
enterprise (Kasapoglu, 2011).
In order to realize the implementation of project, it was necessary for expenditure capital
projects to achieve comprehensive benefits under relatively lower price of society, economy,
and environment through their whole life cycle. In addition, intellectual competence focused
on how to meet the needs of human beings in a resource-efficient, environmentally friendly,
and healthy way during the whole life cycle of information and telecommunication projects
(Huang & Hsu, 2011). To achieve this target, two aspects must be taken into consideration,
i.e., in terms of project management, all the activities, and processes involved in the whole life
cycle of the information and telecommunication project must be managed, operated, and
governed efficiently with the present resource and constrains, namely, doing more with less
(Shen et al., 2010), in terms of results control, the positive functions of the expenditure capital
project could be maximized and its negative effects to the surroundings be controlled in an
acceptance range.
Kerzner (2009) asserted that the phases of project implementation take between 80-85% of the
whole project events and utilization of the required resources. The success in projects required
a combination of product and project management fulfillment that was the product (services,
4
outcomes or outcome) of the project if it was well executed and properly managed. Though
not all of the project would adopt the 5 steps as a few might be terminated earlier than closure.
Typically, the cycles of a project encompass the subsequent degrees: identity, training and
appraisal which are related to pre-implementation, implementation and tracking and
assessment. In all the above stages there exist determinants at every step that might
substantially affect the overall performance of the project.
Belassi and Tukel (2010) claimed that in terms of project implementation issues, the literature
in project control clearly emphasized much on enhancing equipment and techniques consisting
of scheduling, or task failure, rather than on success. However, such function was
comprehensible, as to discover the fulfillment elements of a project was a greater complicated
venture than identifying failure elements, in particular due to the reasons given as observed by
Fowler and Walsh (2014) argued that events involved in any project assignment generally
tended to look project achievement otherwise and consequently, each concerned individual
might allocate unique fulfillment criteria to every phase.
In a competitive business environment, the use of project management could allow
organizations to strategically structure themselves to achieve their business goals and needs.
In this way, organizations could invest in more effective project management that was aimed
at achieving better performance, maximizing the possibility of success, and minimizing the
chance of failure. Within this context, organizations knew which critical factors were most
responsible for the success of a project to manage these factors in the best possible manner.
Critical Success Factors could have a significant impact that supplied quantifiable
improvements to the achievement of a project. The implementation of capital expenditure
projects influenced by the following selected critical success factors namely resource
allocation, communication, top management support and project manager competence.
Yang, Huang and Wu (2011), pointed out the key role of the project manager to achieve success
on projects. Besides the leadership style, the project manager’s individual traits were also
particularly essential from the factor of view of contribution to the success of the project. Since
project management was different from other management areas project managers could
possess unique characteristics. Gorog (2013) on the view on project manager’s personal
characteristics on project implementation success summarized these characteristics as
5
optimism, team-building ability, motivational ability, trust building ability, emotional
intelligence, and improvisation.
Top management support as Johnson, Karen, Boucher and Robinson (2011) study was seen as
one of the most essential factors in the success of any project amongst other Critical Success
Factors (CSFs). This meant that the more management control tactics were practiced in
corporations. However, within the management restrained time and assets, it was also critical
to discover the only support procedures for different project scenarios. Kandelousi, Ooi and
Abdollahi (2011) showed that top management support might be considered in numerous
bureaucracies, as an instance, assisting teams in managing hurdles, exhibiting commitment to
the work and inspiring the subordinates.
Capital expenditure is about use of capital effectiveness and improvement processes in industry
in general and within the Telecommunication Corporation in particular (Kandelousi et al.,
2011). Effective use of capital was important strategic tool for any company operating in
today’s competitive environment. Boquist et al. (2018) stated that an important factor that
distinguished the winners from the losers was the quality of investment decisions, which, in
turn depended on the soundness of a firm’s capital budgeting system. Lieber (2017)
highlighted the strategic nature of effective capital investment that the fastest growing
companies in the US were the ones that knew how to spend money and used resources to their
best advantage. Techniques used by these companies included hiring the best employees,
taking risks with investments and borrowing money to fund growth.
Boquist et al. (2018) discussed the key relationship between company strategy and the
integrated design of effective capital effectiveness systems that in order to remained
competitive, a company needed to align its capital budgeting system with its overall
strategy. Most companies had a well‐articulated vision statement or corporate goal, followed
by a description of the strategy for attaining that goal. The design of the capital budgeting
system, however, was frequently not integrated into the strategy. For example, a company’s
corporate strategy might be to grow aggressively through new product introductions, yet it was
capital budgeting practice might attach great importance to potential losses when new products
cannibalized the old.
6
Along with the need for the integration of strategy and capital budgeting methodology was the
level of capital productivity a firm got from its capital assets. Stainer (2017) linked the
application of new technology with increased capital productivity: An area that must be
considered in total productivity was that of capital input related to technological change.
Technology could be seen as part of the process that converted input resources into outputs of
goods and services. Therefore, total productivity measures could be a justifiable technique for
investment appraisal when implementing new technology. Thus, any analysis could
incorporate technological enhancement as well as considering adjustment for inflation. Shanks
(2012) echoed this belief that the basic tool for understanding the role of technology was in its
competitive advantage in the value chain. Technology was embodied in every value activity of
the firm, and technological change could affect competition through its impact on virtually any
activity.
In addition to strategic capital budgeting and capital productivity there was the need for
effective capital allocation and investment analysis systems. Shanks (2012) stated that studies
had shown that as many as 40 percent of firms used no formal evaluation at all for their
Advanced Manufacturing Technology (AMT) projects. Byers et al. (2017) believed that proper
selection and analysis of proposed capital investment was vitally important, stating that a good
capital investment could add value to a company. It could generate sufficient economic returns
to compensate investors willing to place their capital at risk. It also supported the creation of
products and services. The proper analysis of potential capital projects was therefore vital to
any business organization. The process of identifying, selecting and managing capital
investments involved evaluating the marketplace, recognizing opportunities, examining
alternatives, determining the best option, and making the capital investment.
The study of project success and critical success factors was regularly considered as one of the
vital methods to enhance the effectiveness of project undertakings (Chan, Scott & Chan, 2012).
Many studies of this nature had been conducted in developing countries (Pinto & Slevin, 2013).
However, the findings in these studies may not apply in understanding critical success factors
in the Kenyan context which is the focus of this study.
Kenya had experienced a tremendous noteworthy growth in the telecommunications sector as
evidenced by the increase in number of mobile cell phone subscribers, the number of Internet
7
users and broadcasting stations, since the advent of its liberalization in the 1990s (CAK, 2017).
The industry consisted of a number of companies that included Safaricom Kenya Limited,
Airtel Kenya Limited, Telkom Kenya (Orange) and Essar Telcom Kenya. Services offered
through internet and data consisted of the market four mobile operators, Internet Service
providers (ISPs) and the two fixed operators in networks comprises of Kenya Data Networks
(KDN), Jamii Telecom, Access Kenya and Wananchi Online (Waema, 2015).
Telecommunications played a large responsibility in people’s daily lives, addressing general
challenges encountered by Kenyans. Certain sectors like finance, health, education, agriculture
and the government were fast embracing generation for dissemination of information,
enhancement of service delivery and to reach their clients more effectively and efficiently
(Agyei &Kilika, 2013). Nevertheless, Ogutu (2013) argued that telecommunication
development was in one way or the other faced by quite a number of challenges, consisting of
inadequate infrastructure and excessive pricing, loss of skills, inadequate financing and dealing
with global rivalry.
1.2 Statement of the Problem
Currently millions of dollars were spent annually on capital expenditures projects. Research
studies showed that companies were not spending capital in the most effective manner. For
example, at Airtel Kenya a disconnect existed between corporate affordability and business
planning that has led to across‐the‐board, top‐down cuts year after year. The company culture
was capital dominated with business plans and capital projects rarely achieving promised
results and not always credible. The company had spent too much capital on projects that never
earned the cost of capital. In addition, the cost of new plant construction was above that of
competitors due to company tailored equipment and a quest for perfection; and not minimizing
non-value-adding investment. Thus, Summer (2013) studied project failure in the context of
cost and attributed it to inadequate financial resources, tendering methods and lack of proper
project definition and infrastructure. Arrow smith (2014) in analyzing project failure factors
for telecommunication companies’ projects, identified late procurement of equipment, lack of
training of project managers and slow project selection methods has being the major causes of
project failure.
8
Project implementation phases related to the success development and creation of projects
within the company that presents continuous complexities for managers. The process of
implementing a project was multifaceted, usually requiring simultaneous interest to a number
of variables that comprised of human, budgetary, and technical aspects. Turner and Muller
(2015) observe that those that are involved in the project handling failed to take a proactive
approach to overcoming the uncertainties. As a result of this, project delayed and budget
overruns were usually encountered. Rockart (2012) also observed that six out of 10 projects
were either over budget or behind schedule. Project Management Institute’s (PMI) recent
analysis of global project management trends revealed the wastage of $1m every 20 second
and $2 trillion every year due to poorly performing and/or failure projects. Major reasons for
the declining ratios of successful telecom projects highlighted the issues of missed deadlines
(75 percent), exceeding planned budgets (55 percent), poor communication (40 percent) and
inability to meet project-specific requirements of customer (37 percent). These numerous
project challenges demanded for transformational leadership approach that drives project
management excellence, encourages high performance teams and amplifies opportunities to
project success (Naeem & Khazada, 2017).
Information and Communications Technology (ICT) had been one of the major drivers of this
complexity and acceleration. However, research continually showed that companies had
difficulty in the implementation of ICT projects. According to Whittaker (2014), most ICT
projects failed due to poor planning, vulnerable business cases and a lack of commitment from
the top executives. Most of the capital expenditure projects in Airtel Kenya experience major
hurdles in their life cycle and barely overcome the implementation stage. The major factors
contributing to this trend had not been clearly understood. How to improve capital expenditure
projects through better planning and more effective frameworks has been a major challenge in
Airtel Kenya Limited. This might be because of lack of cross-functional communication,
commitment from the project leaders and lack of knowledge in managing a portfolio of projects
and risk management.
Therefore, this study investigated the effect of selected factors on implementation of capital
expenditure projects in Airtel limited Kenya. The study would address factors like resource
allocation, manager competence and effective communication.
9
1.3 Objective of the Study
The general objective of the study was to establish the effect of selected factors on
implementation of capital expenditure projects of Airtel Kenya Limited within Nairobi County.
1.4 Specific Objectives
1.4.1 To illustrate the effect of resource allocation on implementation of capital expenditure
projects of Airtel Kenya Limited within Nairobi County.
1.4.2 To determine the effect of leadership competence on implementation of capital
expenditure projects of Airtel Kenya Limited within Nairobi County.
1.4.3 To investigate the effect of effective communication on implementation of capital
expenditure projects of Airtel Kenya Limited within Nairobi County.
1.5 Significance of the Study
1.5.1 Airtel Kenya Limited
The findings of this study would bring insight to Airtel Kenya Limited because the findings
will help the future design and implementation of projects. The findings of this study would
be of use to departmental heads and project team members in project implementing
organizations as they would understand the success/failure factors associated with projects.
1.5.2 Policy Makers
The study would be of great contribution to the Ministry of Information Communication and
Technology (ICT) for it would inform them the factors that need to be closely monitored during
the implementation of their projects. The research would add more information in the existing
knowledge and would stimulate further research in this area of study to other scholars.
1.5.3 Researchers and Academicians
Researchers and scholars will benefit from the study because they will use the findings for
future reference and learning material when researching on related topics. For academicians,
the research findings will contribute towards the impact of implementation of capital
expenditure projects in Airtel Kenya Limited.
10
1.6 Scope of the Study
This study was on the effect of selected factors on implementation of capital expenditure
projects. The study factors were on resource allocation, leadership competence, and effective
communication. The study was carried out in period of 3 months in Nairobi County. The
primary target was top – level managers, middle – level managers, and supervisors of Airtel
Kenya Limited – Headquarter – Airtel House in Mombasa Road. The study focused on effect
of selected factors on implementation of capital expenditure projects from between 2017 to
2020. The study was limited only to the employees of Airtel Kenya Limited and the target
population was restricted only to top level managers, middle level managers, and supervisors.
To mitigate on the study limitation, Airtel Kenya and its top employees were considered to
ensure they were representing all telecommunication capital expenditure projects.
1.7 Definitions of the Terms
1.7.1 Capital Expenditure
Capital expenditure refers to the money used by the organization to obtain or for upgrading
activities within the organization (Yang & Huang, 2011).
1.7.2 Effective Communication
Effective communication refers to the transfer of project related information amongst parties
concerned in the implementation of the project (Pinto & Slevin, 2012).
1.7.3 Project Implementation
Project implementation refers to the execution of capital expenditure project by Telkom Kenya
through a certain period of time, set cost and according to their clients’ requirements (Hong &
Kim, 2012).
1.7.4 Leadership Competence
Leadership competence refer to the senior person leading a team of project members in the
implementation of capital expenditure projects. This person offers supervisory activities within
the project team (Yang & Huang, 2011).
11
1.7.5 Resource Allocation
Resource allocation refers to the distribution critical components required in the execution of
a projects which include money, material, labor (Bellasi & Tukel, 2010).
1.8 Chapter Summary
This chapter presented the background of the study, statement of the study, purpose of the
study, research questions, importance of the study, scope of the study, and last the definition
of terms. The next chapter was on the literature review and it provided insight into what other
researchers had done in the field of work and well-being. Chapter three examined the research
methodology applied in this study. Chapter four focused on analysing of the research findings
and presented the results and findings. Chapter five provided a discussion of the findings of
the study, the conclusions derived from the findings, the recommendations for improvement,
and recommendations for further research.
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CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Introduction
This chapter reviewed and presented the literature on factors of the effect on implementation
of capital expenditure projects of Airtel Kenya Limited within Nairobi County. The study was
based on the three specific objectives: to illustrate the effect of resource allocation factor on
implementation of capital expenditure projects of Airtel Kenya Limited within Nairobi County;
to determine the effect of leadership competence factor on implementation of capital
expenditure projects of Airtel Kenya Limited within Nairobi County; and to investigate the
effect of effective communication factor on implementation capital expenditure projects of
Airtel Kenya Limited within Nairobi County.
2.2 Resource Allocation on Implementation of Capital Expenditure Projects
According to Kerzner (2016), resource allocation is the process of assigning
and managing assets in a manner that supports an organization's goals. Resource allocation
included managing tangible assets such as hardware to make the best use of softer assets such
as human capital. Resource allocation involved balancing competing needed and priorities and
determining the most effective course of action in order to maximize the effective used of
limited resources and gained the best return on investment. In practicing resource allocation,
organizations must first establish their desired end goal, such as increased revenue,
improved productivity or better brand recognition (Gottlieb, 2012). Project management was
a very wide area of work, particularly in business. Many people limit their work of a project
manager to supervising their employees and making sure everyone met their
deadline. Resource allocation in project management was one of those particles which made
work of a good Project Manager effective and significant. Resource allocation in project
management was concerned with creating a plan which could help achieved future goals. There
were many resources which had to be allocated when managing a project, beginning from
budget to equipment and tools, to data and the project’s plan (Atkinson, 2016).
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2.2.1 Leadership Style
Transformational leaders were popular for undertaking portfolio of interdependent or
intersecting initiatives that aimed to reinvent the organization through novel or revised
business models founded on their strong vision for future. The notion had gained prominence
in the past few decades as transformational leaders were affiliated with person-oriented factors
such as “visionary” and “charismatic” (Aga et al., 2016). The concept was initially introduced
by Bass (2015) through his descriptive analysis of political leaders. Later studies extended
their focus on psychological factors, personality differences, organizational effectiveness and
project-based environment (Kuhnert & Lewis, 2017).
There was growing evidence that supported transformational leaders’ central role in setting
project directions, ensuring progress and fulfillment of project goals through organization-
wide cooperation and support (Aaseth et al., 2016). Using Multifactor Leadership
Questionnaire, Avolio (2014) analyzed the natural tendencies of individuals as antecedents for
assuming leadership roles. The transformational leader aligned organization-member interests
being more effective than transactional leader (Bass, 2015). Yammarino et al.
(2013) longitudinal study of US Navy officer’s revealed transformational leaders being high
performers and effective in raising subordinate’s satisfaction, as they had the ability to arouse
the interest of subordinates through motivational process by defining their goals, moral
inspiration, raising the effort and task requirements (Kuhnert & Lewis, 2017). Hoover
(2018) also reported high correlated among transformational leader’s charismatic behavior and
subordinate’s effectiveness.
Transformational leaders had wide-ranging importance in organizing projects (Keegan & Den
Hartog, 2014) as they cultivated higher purpose and strong identification to team members.
Consequently, project participants usually went beyond contingent rewarded for their project
activities and accomplishments (Maqbool et al., 2017). Transformational leaders were usually
attentive toward the needs and motives of their subordinates and inspired followers to perform
more than the usual. This style produced trust and satisfaction; moreover, working for a
transformational leader also enlivened experience (Raziq et al., 2018).
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The theories of transformational leadership assumed that a leader should be able to bring
positive changes in follower’s beliefs, values, personal disposition, perception and
expectations (Kuhnert & Lewis, 2017). Moreover, transformational leaders’ emphasis was on
people and their motivations by providing them with vision that satisfied their needs (Keegan
& Den Hartog, 2014). In times of change and uncertainty, transformational leadership behavior
in temporary organizations was found to be the most effective (Raziq et al., 2018).
Transformational leaders usually had a transforming effect on organizations as well as on
individuals. As this was done by proposing the requirement for change, creating new strategies
and vision, enhancing devotion to the vision for change, this would ultimately lead
transformational leader to transform the organization (Munyeki & Were, 2017).
Transformational project leaders offered broad range of capabilities including dynamic and
flexible coordination of project resources, strong collaborations across project boundaries and
communication in midst of uncertainties in managing projects (Aga et al., 2016).
Studies showed there were four elements that would make up a transformational leadership:
idealized influence was the conduct that prompted strong follower’s feelings and identification
with the leader; intellectual stimulation was the behavior that aroused follower’s consciousness
of problems and influenced them to create inventive or potentially innovative ways to deal
with by comprehending them; inspirational motivation appeared at the point when leader
passed a vision that was engaging and motivating for subordinates and gave them challenging
tasks, also with expanded desired; and individualized consideration comprised of providing
support, encouragement and training to followers/devotees (Raziq et al., 2018).
2.2.2 Project Flexibility
Efficient organizations were being associated with flexibility especially when the focus on
customers and environment were changing at faster pace in general, the success and failure of
companies majorly depended upon the ability to change as well (Skorstad & Ramsdal, 2016).
Project flexibility provided an effective front-end mechanism in aligning projects objectives
with those of its stakeholders (Brennan, 2013). In this evolving era, there was a need of project
owners and users to have freedom to maneuver that helped them to modify projects as they
obtained more information about their needs and changes in the project environment. Freedom
15
to maneuver might settled depending on the future yet undetermined inner choices might be
viewed as an estimation of internal uncertainty of project. A project decision could be within
the room for maneuvering if it did not violate the outcomes of the previous decision (Floricel
et al., 2012).
Flexibility was considered as a modern approach to prepare projects for coping with
uncertainty and smoothing project schedules. Project flexibility had been referred to as the
elasticity and adaptability of various organizations which were related to projects. In other
words, flexibility protected the projects from uncertain consequences (Zailani et al., 2016). It
could also be understood as the ability to postponed the irreversible decisions, or it could also
be described by making an irreversible decision more reversible until more information was
available. Project flexibility was preferably desired at early project stages to ensure adaptability
as organizations responded to dynamic business environments (Olsson, 2016). Flexibility
perspective – maintained project alignment with organizational strategy and drew emerging
methodologies for project efficiency. Flexibility also enabled utilization of neglected
opportunities in uncertain project environments.
Floricel et al. (2012) defined project flexibility as the adjusting capacities of projects to
potential consequences of uncertain environments. Project flexibility was one of the
fundamental components that could be incorporated in order to mitigated the risk associated
with project thus, eliminating a degree of uncertainty and complexity both in project-based
organizations and environment (Brink, 2017). Flexibility was highlighted as a risk mitigating
strategy that secured the project-based organizations from uncontrollable changes. Therefore,
project-based organizations that faced a high level of uncertainty could aimed for high
flexibility. In other words, project-based organizations could be flexible to change and adhered
to manage the uniqueness, complexity and uncertainty of a project (Zailani et al., 2016).
Flexibility was a method to improve effectiveness of projects rather than efficiency. Flexibility
has been considered as a treat to delivering the project on scheduled time and within the narrow
budget (Adler, 2014).
But in today’s dynamic project environment, the success of projects was not only dependent
upon the efficiency but also on the effectiveness of projects (Shahu et al., 2013). Project
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flexibility prepared projects for scope changes, greater independence to manage uncertainty
and complexity, avoided cost overrun and ultimately achieved success in mega projects (Cui
& Olsson, 2018). Project management challenges could be effectively addressed through:
internal flexibility by keeping flexibility within project scope, i.e. how to meet project
requirements and external flexibility to make project scope adjustments, i.e. what project
requirements needed to be met (Olsson, 2016).
2.2.3 Project Visibility
Project visibility was a key ingredient for the successful project management as a project might
started to stagnate if the relevant information was not exposed to all stakeholders (Cross &
Brohman, 2014). Project visibility ensured that everyone stayed engaged with the project
through greater awareness of project objectives, risk strategies and project outcomes (Perry,
2013). With visibility as a key focus throughout the whole organization, companies were
capable to enhance the communication, push business objectives and encouraged
accountability toward accomplishing the desired objectives Patanakul (2015). Project visibility
was a blend to the management of scheduling pressures and dependencies. It was referred as
the degree of project exposure to its stakeholders, though it was done through computer-based
tracking systems to ensure the monitoring of information related to all activities and project
dependencies (Wheatley, 2016). Sakamoto et al. (2016) reported that a high visibility index in
projects demonstrated significant improvements in project delivery time, costs and quality.
Project visibility could encourage powerful asset sharing at the project level, which could
benefit local project as well as global portfolio success (Caridi et al., 2017). When
organizations increased the project visibility of their project work both internally and
externally, with different departments, units, different stakeholders and information sources,
then they were more likely to reduce the redundant project activities and cost overruns as well
as improved the overall project performance (Wheatley, 2016). Consequently, an increase in
project visibility reduced the project delays by empowering the robust assets, relationship
synchronization and correspondence administration, empathetically influencing the project
success. Moreover, better information would lead to better estimation of amount of time and
money required to complete the project deliverables (Perry, 2013).
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The International Project Management Association (IPMA) highlighted an increased focus on
project benefits management to reduce risk of failures for completed projects that might fall
short in meeting stakeholder’s expectations (Bourne & Walker, 2016). Stakeholder
engagement had been highlighted as a renewed area of focus for project managers especially
in a leadership role (Baker, 2012). An effective identification of stakeholder’s need and
engagement increased the degree and rate of successful projects (Lu et al., 2014). It had been
well established that project visibility improved stakeholder’s engagement, facilitates
alignment of vision and goals that was critical for project success (Wheatley, 2016). The lack
of project visibility disengaged stakeholders and might become primary reason for complex
project failures (Butt et al., 2016). Hence, project leaders could increase the prospects of
successful projects though effective management of wide-ranging expectations, competing
demands and influences exerted by multiple stakeholders. Great project leaders were thus
actively engaged to ensure all stakeholders were strategically aligned with a clearly
communicated vision and increased visibility of complex projects (Patanakul, 2015).
2.3 Leadership Competence on Implementation of Capital Expenditure Projects
Numerous recent reports in management studies, following the existing leadership theories,
had demonstrated that leadership competence was becoming increasingly important.
Historically, the leadership theories encompassed the trait school, the behavior school, the
contingency school, the relational school, the visionary or charismatic school, the emotional
intelligence school, and the competence school; this latter school integrated aspects of all of
the earlier leadership schools into the latest theory (Muller et al., 2012). Dulewicz and Higgs
(2015), who were representatives of the competence school, clustered competences into three
dimensions: intellectual dimensions (IQ), managerial dimensions (MQ), and emotional and
social dimensions (EQ). The research found that top managers in the telecommunication
industry with extensive management experience and leadership competence had a greater
effect on the implementation of expenditure capital projects.
2.3.1 Managerial Competence
Managerial competence is an indispensable skill for a top manager, who must manage the
entire project team to achieve the implementation of expenditure capital projects. Managerial
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competence embodied the following seven attributes: namely resource management, team
management, engaging communication, empowering, developing, target achieving, and
management experience (Dainty et al., 2015). Resource management referred to the ability to
plan and coordinate project resources, translating project long-term goals into practical actions.
Team management comprised the management skills of guiding and supporting the work team,
maintaining alignment with the project objectives, and coordinating the entire project team.
Engaging communication included clear expression when communicating with staff, winning
support after communication, and communicating in a passionate, motivated, and
approachable way (Yang et al., 2011).
According to Muller and Turner (2010), empowering meant giving staff the autonomy to finish
work assignments independently, encouraging staff to propose creative ideas, motivating
employees’ strategic thinking, and supporting critical advice offered by workers regarding
organization practices and policies. Developing meant encouraging all project participants to
accomplish relatively complex tasks, developing and guiding their capabilities, exploring their
potential to take on new tasks and roles, and incorporating critical advice and learning from
challenges. Target achieving meant having the will to make potentially high-risk decisions and,
once made, turning the decisions into plans to achieve project targets (Dulewicz & Higgs,
2015).
The detailed competencies of a project manager were the subject of research conducted by
various researchers in different countries. For example, the research conducted by Geoghegan
and Dulewicz (2018) pointed to 10 competencies (dimensions of leadership) which were
critical for project success. Five of them were included in the group of so-called managerial
competencies, four - in social competencies, and only one in intellectual competencies. Such
competencies as resource management, delegating tasks, powers and entitlements
(empowering), personnel development and motivation were listed among the most important
ones for project success (Muller et al., 2012).
In another study, Gehring (2017) attempted to systematize the detailed competencies of
a project manager. He distinguished the common competencies presented on the lists of other
authors investigating the analysed subject matter and attributed to individual competencies the
supporting personality types in line with Meyers-Briggs Type Indicator. It allowed the types
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of personalities supporting project realization through its consecutive phases to be identified.
In turn, Dvir, Sadeh and Malch-Pines (2016) pointed out that project managers were more
interested in participating in endeavours that match their personality. Some preferred to
participate in imitation projects, whereas others preferred high-tech projects characterized by
a high degree of uncertainty. It allowed one to conclude that the personality traits of a project
manager made manager more or less competent for a particular project type, which had a direct
impact on the success of a project. Hossein, Bakhsheshi and RashidiNejad (2011) identified
which characteristics of a project manager were desirable depending on project types. The
above-mentioned authors also identified which characteristics of a project manager have the
biggest impact on meeting the requirements related to, for example, time, cost, and quality of
the project final outcome.
2.3.2 Intellectual Competence
The top managers’ IQ is an influential factor involving three attributes, including critical
analysis and judgment, cognitive ability, and strategic vision (Dulewicz & Higgs,
2015). Critical analysis and judgment referred to the top managers’ competence in terms of,
for example, providing advice and suggestions; understanding the project feasibility, design,
and proposal; offering judgment and decision making according to the available project
information; understanding the potential consequences of decisions; resolving dynamic and
complex problems; and displaying insight into the relationships and interests of project
participants (Muller & Turner, 2010).
Cognitive ability was measured by awareness of both the advantages and disadvantages in the
internal and external project environment, recognition of the potential project risks, and skills
in manager-level creative thinking (Muller et al., 2012). Strategic vision, which encompassed
the priorities for future working arrangements, a clear understanding of the project’s future
development, anticipation of potential changed during project construction, and the ability to
trade-off between the short- and long-term benefits of the project and between economic social
environment benefits.
As for the top managers in the information and telecommunication industry, their IQ, and their
ability to bring the project to a successful conclusion, especially implementation part, relied
heavily on their critical analysis abilities and judgment, their cognitive ability, and their
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strategic vision (Muller & Turner, 2010). Hence, from the perspective of project level,
intellectual competence could be interpreted into internal efficiency, concentrating on efficient
management and operation within the scope of the telecommunication system to ensure
competitiveness and advantages compared with other alternatives; and external efficiency,
referring to maximizing expected functions and minimizing negative impacts that the
intellectual competence played on its surroundings to affirmed the harmony and balance
between the information and telecommunication system and its external environment
(Dulewicz & Higgs, 2015).
Thus, according to critical analysis by Muller and Turner (2010), the study divided internal
efficiency into three aspects, i.e., buildability in the construction and early phases,
maintainability in the operational phases, and adaptability in the latter phases. Buildability
referred to the notion that project blueprint could be transformed into reality under current
conditions with reasonable effort. Maintainability referred to the notion that operational works
and maintenance service were simple, rapid, and economical. Adaptability referred to the
notion that the infrastructure could keep its function under external disturbances and easily
upgrade according to the needs of the urban development. As the mission of an infrastructure
project was to efficiently promoted urbanization, its external efficiency could not only be
emphasized on natural environmental impact but also took account of social function and
impact. Hence, this research defines external efficiency as coordinability, i.e., the friendly
coexistence of the project and the environment, namely the optimal state of the infrastructure’s
externality, which means the minimum of the negative effects and the maximum of the positive
functions.
Therefore, as a result, four dimensions were identified to measure IQ: the buildability,
maintainability, adaptability, and coordinability of infrastructure projects. Buildability
included economic feasibility, availability of technical assistance, and reasonable resource
requirements for the infrastructure as well as project management performance during the
entire construction process. Maintainability incorporated the scale of the operation and
maintenance costs as compared to similar infrastructure projects; it also included the simplicity
of maintenance operations. Adaptability comprised project safety, the ability to withstand
environmental disturbances, the ability to meet all long-term requirements, and the ability to
21
modify the function. Coordinability encompassed the acceleration of local economic
development, the protection of local cultural or historical relics and customs, the satisfaction
and participation of the local community in the expenditure capital project, environmental
protection measures taken during the construction process, the degree of influence given to the
local natural environment during the entire life cycle, the visual match between the
infrastructure and the surrounding environment, the degree of noise pollution, the degree of
light pollution caused by the building and ground lighting, and so on (Muller et al., 2012).
2.3.3 Emotional Competence
Emotional competence is another necessary leadership competence for a top manager; it was
measured by eight attributes: self-awareness, organizational awareness, emotional resilience,
intuitiveness, interpersonal relationships, influence, motivation, and conscientiousness
(Dulewicz & Higgs, 2015). Self-awareness meant the top managers’ ability to identify their
own consciousness, effectively managing and controlling their own emotions, and maintaining
a degree of self-belief (Butler & Chinowsky, 2016). Organizational awareness referred to the
capability to correctly recognize the emotional and political atmosphere within the work team
and to contribute to the development of the team so that members regarded themselves as
partners in the enterprise Hawkins & Dulewicz, 2017). Emotional resilience depended on
maintaining emotional consistency under pressure, balancing emotional needs between tasks
in different situations and when confronting different concerns, and keeping calm when faced
with challenges and criticism. Intuitiveness means the ability to make clear decisions by taking
advantage of perceptual cognition when there is information asymmetry or distortion
(Sunindijo et al., 2017).
Interpersonal relationships encompassed the ability to make decisions or build cooperation
while considering the partners’ emotions and needs, obtaining other participants’ commitment
to organizational decisions and actions, establishing and maintaining mutually trustful
relationships with the project participants, and being willing to share ideas and listen
attentively to others (Dulewicz & Higgs, 2015). Influence reflected the top manager’s ability
to persuade others to change their views based on a rational understanding of his own position
and the specific project context, also the ability to encourage others to mirror his work attitude
22
and behavior (Zhang & Fan, 2013). Motivation related to the ability to stimulate motivating
power and energy and to actively work to realize the project targets even when faced with
suspicion and doubt (Sunindijo et al., 2017). Conscientiousness comprises the leadership
competence of manifesting clear commitment to a course of action even when faced with
challenges, matching words with deeds to encourage others to support the chosen direction,
and pursuing ethical solutions to complex problems, such as trade-offs between current
interests and the long-term sustainability of construction projects (Butler & Chinowsky,
20016).
Emotional competencies could be divided into different categories. The most common one was
the basic division of competencies, considering hard competencies (referred to as technical,
professional, vocational, substantive, functional), soft competencies (interpersonal,
behavioural, social) and also conceptual (strategic) competencies (Dulaimi, 2015). Hard
competencies referred to skills in using the tools typical for a specific profession. They were
needed to solve technical problems, to make decisions in specialized areas and also to train
others. In turn, social competencies were based on the ability to cooperate with other people,
to understand their needs and aspirations and to motivate them. Personality traits were the basis
for developing such competencies (Winter & Checkland, 2013).
Emotional competencies served as a clamp binding the aforementioned two types of
competencies. They represented the ability to coordinate and integrate all interests and
directions of the carried-out activities (Stoner &Wankel, 2016). In the past, the competencies
deemed most important for effective project managers were of a more technical nature.
However, it was now widely recognized that a mix of technical and people-oriented
competencies were important for project manager’s success (Krahn& Hartman, 2014). What
was more, the technical side of project management was well defined, so now attention was
directed to the “soft” side, chiefly interpersonal competencies (Leybourne, 2017).
2.4 Effective Communication on Implementation of Capital Expenditure Projects
Project management was popularized by the Department of Defense 40 years ago (Kerzner,
2011) to establish guidelines around short-term assignments and ventures. Almost immediately
researchers begun to investigate the soft or people, side of project management which they
believed was in stark contrast to more stringent aspects such as creating scope, budgets and
23
timelines. In one of the first extensive studies of the people side of projects, Thamhain and
Gemmill (2014) found that one of the most important skills needed by a project manager was
the ability to communication efficiently. More specifically, they concluded that a project
manager’s capacity to influence team members was consistent with their effectiveness. This
early study started an important discussion – one that centered on communication as a means
for project managers to navigate the technological and business domains of each project
(Haywood, 2018).
2.4.1 Communication Relationship
The project communication must focus on the relationship between communication (i.e. data
and information flow) and progress. According to Badir et al. (2013), communication was
looked at as a factor in the success or failure of projects and project management. Katz’s
(2012) seminal study about the longevity of research and development (R & D) project groups
brought attention to this research trajectory. While looking to conceptualize temporal
frameworks for changes that occur in project teams, Katz (2012) found that poor
communication impacts team performance negatively. Henderson and Stackman (2010)
discussed variations in communication activities, folded into this trajectory were investigated
into the strategies and instruments used for project communication such as such as reports,
dashboards, meetings and presentations (Gibson & Cohen, 2013).
The bulk of the research in this area was within the context of R & D. Pinto and Pinto
(2012) found that high-cooperation teams differed from low-cooperation teams both in terms
of their increased use of informal methods for communication as well as their reasons for
communicating. Griffin and Hauser (2012) observed that successful project teams highly
adapted at coordination and communication were able to overcome the problems associated
with physical facilities, personnel movement and organizational structures. And Hauptman and
Hirji (2016) discovered that two-way communication, and the willingness to share ambiguous
information, had a positive impact on cross-national project outcomes. The result of the work
done with R & D project teams was conclusive in this regard: it demonstrated that the amount
of communication among team members was a strong predictor of project outcomes.
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Beyond R & D, Hoegl and Gemuenden’s (2011) looked at the communication among software
teams and explained that there was a positive relationship between informal communication
(i.e. formalization structure and openness of information exchange) and team
performance. Ammeter and Dukerich (2012) also looked at communication in technical
environments and their survey of engineering and construction project teams overwhelmingly
concluded that the regularity with which meetings were held impacted how well a team
accomplished its goals. And while looking at more general project management
teams, Chiocchio et al. (2012) found that high performing teams exchanged more messages.
Indeed Soderlund (2014) studied several different general project teams and discovered that
increased communication frequency was predicative of team task performance. These studies
echo the same basic premise about communication as those that focused on the context of R &
D – that it is vital to project success. Indeed, Hoegl and Gemuenden (2011) explained it best
when they stated that communication is the most elementary component of team work.
According to Aakhus and Ziek (2013), the final aspect of this research trajectory had to do
with the strategies and tools used to support communication between the project team. Tools
were instruments for communication through which certain sorts of communication were
enabled and strategies were broad-based statements that enabled managers to accomplish
objectives. There were a great many tools and strategies for project communication (i.e.
telephone, faxes, teleconferences, dashboard, e-mail, videoconferences, collaborative design
tools, face-to-face and knowledge management systems) and the research stated that, in
general, the more tools used by project managers the more successful a project team will be
(Smulowitz & Ziek, 2012).
Although there was a difference on the tools used by certain types of teams, tools enabled the
conditions for success (Gibson & Cohen, 2013). For example, Henderson and Stackman
(2010) studied project communication to determine what degree the teams relied on mediated
communications rather than face-to-face interaction to accomplish tasks. According
to Henderson and Stackman (2010), project teams working on projects of $1 million or less
tended to be co-located and more reliant on face-to-face communication. Obviously then
project teams with budgets above $1 million had higher dispersion among members and were
more likely to use mediated technology.
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2.4.2 Communication Behavior
The underlying approach of the research on communication as a factor had to do with the
perception that improving communication would positively impact project team performance.
As Chiocchio et al. (2017) explained, projects were complex, high-stakes and time bound
ventures fraught with uncertainty and project managers must developed fruitful
communication among project stakeholders. Therefore, project managers needed to spend just
as much time working on increasing the frequency and types of communication as they would
developing software, models, simulations and databases (White & Fortune, 2012). So just like
project manager communication competency, communication as a general area of project team
behavior was something that also needed to be developed.
A common theme in the research on communication as either a competency or factor was that
it was a process of moving information to project stakeholders as outlined in project plans as
well as various ad hoc requested (Brill et al., 2016). There was an emphasis on networks and
necessary data, transmission of information and the amount of information that moved among
team members (Slevin & Pinto, 2017). Hauptman and Hirji, 1996). What best described this
approach was Dow and Taylor’s (2018) description of the three major components of project
management communication: communicating in a timely manner, generating the right
information and collecting, distributing and storing information. While understanding the
process of accumulating and transmitting data was important, there needed to be more of a
shift from the emphasis on data management to social interaction (Griffen & Hauser, 2016).
Communication was about how projects are created, directions decided and outcomes
determined. In other words, communication constituted the dialogue between project managers
and project stakeholders that ultimately shaped the scope of projects (Winter et al., 2016).
What was needed at this point were more studies that looked at communication as a social
process and not simply the instrumental process of information delivery (Hauptman & Hirji,
2016). There needed to be a shift to an empirical social research perspective so that
communication could capture the unique, complex and time-limited processes of interaction
and project management (Soderlund, 2014). The current study did just this by exploring the
communicative practices of project managers and more specifically the underlying premise
26
that these practices were part of the constitutive dialogue that occurred between a project
manager and project stakeholders. The premise echoed (White & Fortune (2012) belief that
project managers could look toward concepts and images which focused on social interaction
among people: the flux of events and human action, the framing of projects (and the profession)
within an array of social agenda, practices and stakeholder relations.
Project teams were usually thrust together to deliver a customized and unique benefit to an
organization. In some projects, team members were put together and had never worked
together before (Griffen & Hauser, 2016). The diversity within a project team which could be
cultural, geographical, organizational, functional, age related, level of education and so on was
indeed the biggest challenge for a project manager. All projects were by nature fluid and ever
changing. Hence a project manager had to consider the changes and challenges all the way
until the end of the project and ensured that the team and stakeholders were fully up to date
with issues and progress so that there would be no nasty surprises for them to discover later on
(Dow & Taylor, 2018).
Successful project management communication was about being there for everyone, being in
touch with the real challenges of the project, understanding the real issues within the team who
must deliver the project as well as understanding the issues of the sponsors who the team
delivered the project for (Brill et al., 2016). Being present, visible and engaged with everyone
was important – during the good times and the challenging times. Communication was not
only about speaking to and hearing from people; it was about understanding the complete
message. What language to use, how to convey the message with respect to tone, feeling and
body language all played an important role in the communication process. If these were used
incorrectly, the result was often a confused message and misunderstanding of the real issues.
So, a successful project manager could only maximize the effectiveness of communication
within the team by being prepared to lead by example. A big part of leadership was to be
present, and be prepared to communicate with all stakeholders at their respective levels (Slevin
& Pinto, 2017).
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2.4.3 Communication Design
The journey to answering the question started first with attending to approaches that directed
attention to the role of communication as constitutive of organization. This line of thinking
emanated from the notion that organization was a discursive phenomenon that was constructed
and expressed through communication (Taylor & Cooren, 2017). The generative aspect of
communication emerged from the way organizational members spoke about decisions, plans
and activities and impacted the entirety of the organization’s reality. In general, as it related to
project management, communication was one of the most important organizing properties
(Fairhurst & Putnam, 2014).
Communication design took the demands of interaction as a central animating force in shaping
the built-up human environment. According to Aakhus and Jackson (2015) there were three
interrelated starting points to understanding communication design. First, communication
design was a natural activity evident in language used and the ability to utilized mutual
knowledge for the purposes of communication. Second, the built-up human environment
revealed both designs for communication and communication design work. Design was an
open-ended process where individual socio-technical and cognitive efforts yielded interaction.
And finally, artificial environments from this perspective could be studied to advance
knowledge about communication because it examined how communication was enacted and
institutionalized in society (Dow & Taylor, 2018).
The design stance emphasized how parties mutually constructed and elaborate the
communicative context through the actions they took and how that context shaped the next
possible actions. Typically studies of communication as design investigated interventions into
and inventions for human interaction that aimed to change interaction from one form into
another such as a quarrel into a negotiation. These included studies of disputed mediators,
meeting facilitators, policy professionals, and the design and use of information and
communication technology (Aakhus & Jackson, 2015). Yet recently there had been a turned to
apply design to managerial and professional practices because it explained the construction of
forms of preferred forms of communication and interaction (Ziek, 2013). For
example, Anderson and Aakhus (2012) found that association managers relied on
28
communication design in their daily lives. Association managers developed communication
that underwrited their interventions on interactions among association executives that they
came in contact with. The design perspective then drew out an important point in project
communication – it shaped the dialogue with stakeholders and consequently the activity and
boundaries of each project.
2.5 Chapter Summary
This chapter presented the literature review based on the study’s specific objectives. First
objective reviewed how the resource allocation affected the selected factors on implementation
of capital expenditure of Airtel Kenya Limited projects. Resource allocation would help
managers to bring together more productive and effective project teams and workgroups in
enabling them to appraised their schedules and easily estimated resource availability in real
time. Second objective reviewed how leadership competence affected the selected factors on
implementation of capital expenditure of Airtel Kenya Limited projects. The project manager
competence plays a vital role in the success of a project as they oversee specific projects
ultimately designed to make progress toward strategic planning objectives. Third objective
reviewed how effective communication affected the selected factors on implementation of
capital expenditure of Airtel Kenya Limited projects. Maintaining open, regular and accurate
channels of communication with all levels of project staff and stakeholders is vital to ensuring
the effective implementation of capital expenditure projects. Chapter three presented the
methodology that would be adopted for the study.
29
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Introduction
This chapter presented the methodology that would be adopted for this study. The study
methodology included the research design which described the approach the study took, the
study population, sample size, sampling technique, data analysis and the procedures that were
adopted for the study, and finally the chapter summary was presented.
3.2 Research Design
Copper and Schindler (2014) defines research design as the blue print for the research process.
It shows exactly how the study will be conducted in technical terms; it elaborates how the
researcher will conduct sample selection, the data collection instruments that will be used and
research procedures among other specific tasks. Cox and Hassard (2015) on the other hand
define research design as clearly defined structures within which a research study is
implemented. This study adopted a descriptive research design, which involves direct
exploration, analysis and description of particular phenomena as free as possible from
unexplained presumptions, aiming at maximum intuitive presentations Copper and Schindler
(2014). According to Saunders, Lewis and Thornhill (2012), descriptive design is used to
document a study phenomenon in its real situation, without the interference of the researcher.
This design enabled the researcher to identify and describe characteristics of the study
population, and their relationships.
3.3 Population and Sampling Design
3.3.1 Population
A population of a study is the total collection of elements, or people in a study where references
are made (Saunders, Lewis & Thornhill, 2012). Cooper and Schindler (2014) also defined a
population of a study as the total units that form the study subject a researcher wishes to
examine. For this study, the population was composed of 83 supervisors, middle-level
managers and top-level managers of Airtel Kenya Limited. Table 3.1 show population
distribution.
30
Table 3.1: Population Distribution
Unilever Kenya Population % Distribution
Executive (Top Level Managers) 6 7
Senior (Middle Level Managers) 23 28
Supervisors (Lower Level Managers 54 65
Total 83 100
Source: (Airtel Kenya Limited, 2019)
3.3.2 Sample Design
According to Mugenda et al. (2012), sampling design is the framework on how a study
sampling will be conducted. Sampling on the other hand is the process a research engages to
select elements or units from a population that are representation of the whole, to carry a study
on. Cooper and Schindler (2014) on the other has define sampling as the procedure or
systematic process that researchers use to select individuals for a study that are a representation
of the whole population of the study. The sampling design presented the sampling frame, the
sampling technique and the sample size.
3.3.2.1 Sampling Frame
Welman and Krugler (2012) defined a sampling frame as the final list that represents the
population of the study from which a researcher makes a sample selection. The research was
conducted among the full-time employees of Airtel Kenya Limited. The sampling frame of
this study was selected from a list of top – level managers, middle – level managers, and
supervisors provided by the Human Resource office.
3.3.2.2 Sampling Technique
According to Cooper and Schindler (2014), a sampling technique is the tactic that a researcher
uses to ensure that various groups either in a homogeneous or heterogeneous study are well
represented in the final sample size for the study. This study adopted a stratified sampling, and
random sampling technique to pick the study sample. Stratified sampling was used because
youth entrepreneurs under this program are not homogeneous, but rather, heterogeneous. This
meant that they possess different capital expenditure project ventures in different sectors,
therefore experienced different divides a heterogeneous population into distinct categories
31
challenges or successes in their capital expenditure project. Airtel employees (top – level
managers, Middle – level managers and supervisors) were put into stratums of independent
sub population from which individual elements could be randomly selected. Merriam (2011)
defines random sampling technique as a method that gives elements within a study population
or stratums an equal chance of being sampled. Thus, all the top – level managers, middle –
level managers, and supervisors were given equal chance.
3.3.2.3 Sample Size
Cooper and Schindler (2014) defined sample size as a smaller unit representing the larger
population. In selecting a sample size, a researcher is usually guided by the level of confidence
he or she needs to have in the data, the accuracy, the type of analysis to undertake, and finally
the total population from which sample will be drawn. This study utilized Krejcie and Morgan
(1970) formula to determine the sample size as follows:
S ꞊ X²NP (1 P)
d² (N 1) + X²P (1 P)
Where: S = Sample Size
X² = Confidence Level
N = Population
P = Population Proportion
d² = Degree of Accuracy
S = (1.96²*83*0.5) (1 0.5) / (0.5² *83 1) + 1.96²*0.5(1 0.5) = 66
Sample Size = 66.
The sample size distribution is indicated in Table 3.2
32
Table 3.2: Sample Distribution
Unilever Kenya Population Sample % Distribution
Executive (Top Level Managers) 6 5 7
Senior (Middle Level Managers) 23 18 28
Supervisors (Lower Level Managers 54 43 65
Total 83 66 100
Source: (Airtel Kenya Limited, 2019)
3.4 Data Collection Methods
According to Cooper and Schindler (2014), data collection is the process of gathering all data
from respondents of the study in an established systematic manner so as to answer research
objectives or questions. This study used structured interview questionnaires to collect data.
The questionnaire was administered by the researcher and research assistants. The
questionnaire utilized the Likert Scale of 5 measurements (Strongly Disagree, Disagree,
Neutral, Agree, and Strongly Agree). Section I captured the demographic information of the
top – level managers, middle – level managers, and supervisors of Airtel Kenya; Section II
captured questions from research question one on resource allocation; Section III captured
questions for research question two on leadership competence; and Section IV captured
questions for research question three on effective communication. According to Glaser and
Strauss (2011), questionnaire are critical tools for research for collecting primary data.
Therefore, for this study, the use of questionnaire was justified to the extent that the study
captured only primary data.
3.5 Research Procedures
According to Cooper and Schindler (2014) research procedures are the detailed description
consisting of step by step guide on how the research should be conducted to meet the objectives
of the study. For this study, the research begun by seeking approval from Airtel Kenya to
conduct a research on capital expenditure project. This enabled in the researcher getting the
sample frame which advised on the 66 top – level managers, middle – level managers and
supervisors to be sampled based on the parameters of the study.
33
This was followed by cold calling a few of the respondents in the sample to establish their
existence, and later set up appointments to meet the respondents and administer the
questionnaire face to face. A pilot test was then conducted using at least ten respondents to the
sample population selected using random sampling approach. The results from the pre-test
were analysed using the statistical program for social sciences (SPSS) to determine findings
and to establish the internal consistency of the items in each of the independent variables. The
pilot was also used to test reliability and validity of the study instrument.
3.6 Data Analysis Methods
According to Saunders et al. (2012), data analysis is the process of reducing data collected
from the study respondents into manageable size, by developing summaries, and themes by
applying statistical techniques. The quantitative data for this study was analyzed using both
and descriptive and inferential statistics provided by the Statistical Program for Social Science
(SPSS) to generate the required frequencies and percentages that were interpreted to answer
the research questions. Inferential statistics included correlations and regression analysis
between resource allocation, leadership competence, and effective communication.
Correlation analysis was used to determine whether there existed any relationship between
variables. Linear regression analysis was used to test the level of significant for the
relationship. Regression analysis was used to test the level of significance for the relationship.
The findings of the study have been presented using tables and figures.
3.7 Chapter Summary
This chapter has presented the study methodology that was adopted for the study. The
descriptive research has been adopted as the study research design. The researcher was also
able to identify the population as 83 top – level managers, middle – level managers, and
supervisors of Airtel Kenya. The stratified and random sampling techniques have also been
presented as the study sampling techniques. The sample size found to be 66. Data collection
was conducted using a closed ended structured questionnaire. The research procedures
included seeking permissions from Airtel Kenya to carry out the study, and also conducting a
pilot test to determine reliability and validity. Data was analysed for descriptive and inferential
statistics using Statistical Packages for Social Sciences (SPSS). The study findings were
presented using tables and figures. The next Chapter 4 presents study results and findings.
34
CHAPTER FOUR
4.0 RESULTS AND FINDINGS
4.1 Introduction
This chapter presented the results and findings of the study based on the collected and analyzed
data. The chapter’s chronology had been guided by the questionnaire that provided responses
to the following: general information; effect of resource allocation on implementation of
capital expenditure project; effect of leadership competence on implementation of capital
expenditure project; effect of effective communication on implementation of capital
expenditure project; correlation analysis, and regression analysis.
4.2 General Information
4.2.1 Response Rate
The researcher had a target of 66 from the target population, and thus, handed out 66
questionnaires to Airtel Kenya Limited’s supervisors, middle-level managers, and top-level
managers. 44 questionnaires were collected from the respondents, all of which were filled
appropriately and thus used for the study. This gave the study a response of 66.7% as indicated
in Table 4.1
Table 4.1: Response Rate
Response Rate Number of Questionnaires Percentage Response
Fully Filled and Returned 44 66.7
Uncomplete and Unreturned 22 33.3
Total 66 100
4.2.2 Reliability Analysis
A pilot test was conducted to determine the reliability for the questionnaire tool. For a study to
be reliable, it had to yield a Cronbach Alpha value above 0.6. When a reliability analysis was
conducted for this study, a Cronbach Alpha value of 0.877, and thus the study tool was reliable
as indicated in table 4.2
35
Table 4.2: Reliability Analysis
Areas of Analysis Items Cronbach’s Alpha
Resource Allocation 9 .887
Leadership Competence 9 .859
Effective Communication 9 .884
Average .877
4.2.3 Respondents Gender
The findings of this study showed that 25 were male and 19 were female as shown in Table
4.3.
Table 4.3: Respondents Gender
Respondents Gender Frequency Percentage
Male 25 57
Female 19 43
Total 44 100
The findings of the study revealed that male was majority with 57% and female were 43% as
shown in Figure 4.1.
Figure 4.1: Respondents Gender
Male, 57%Female, 43%
Respondents Gender
Male Female
36
4.2.4 Respondents Age
The results of the study revealed that respondents age between 20 – 24 years old were 20%,
between 25 – 29 years old were 34%, between 30 – 34 years old were 27%, and above 35 years
old were 19% as shown in Table 4.4
Table 4.4: Respondents Age
Respondents Age Frequency Percentage
20 – 24 Years
25 – 29 Years
30 – 34 Years
9
15
12
20
34
27
Above 35 Years 8 19
Total 44 100
The findings of the study revealed that respondents of between 25 – 29 years old were the
majority as shown in figure 4.2
Figure 4.2: Respondents Age
4.2.5 Respondents Department
The results of the study revealed that 11% of the respondents were in finance/accounting
department, 20% were in customer services, 25% were in marketing/sales, 7% were in human
resource, and 37% were in information technology department shown in Table 4.5
0% 5% 10% 15% 20% 25% 30% 35%
1
2
3
4
20 - 24 Years
Old 20%
25 - 29 Years
Old 34%
30 -34 Years
Old 27%
Above 35 Years
Old 19%
Respondents Age
37
Table 4.5: Respondents Department
Respondents Department Frequency Percentage
Finance/Accounting 5 11
Customer Services 9 20
Marketing/Sales 11 25
Human Resource 3 7
Information Technology 16 37
Total 44 100
The findings of the study revealed that majority of the respondents are in information
technology department (37%) as shown in figure 4.3
Figure 4.3: Respondents Department
4.2.6: Respondents Experience
The results of the study revealed that 23% of the respondents had 0 – 4 years of experience,
36% had 5 – 9 years, 27% had 10 – 14 years, and 14% had over 15 years of experience as
shown in Table 4.6.
0%
5%
10%
15%
20%
25%
30%
35%
40%
1 2 3 4 5
Finance/Accounti
ng 11%
Customer
Service 20%
Marketing/ Sales
25%
Human Resource
7%
Information
Technology 37%
Respondents Department
38
Table 4.6: Respondents Experience
Respondents Experience Frequency Percentage
0 – 4 Years 10 23
5 – 9 Years 16 36
10 – 14 Years 12 27
15 and Over Years 6 14
Total 44 100
The findings of the study revealed that majority of the respondents had experience of 5 – 9
years as shown in figure 4.4
Figure 4.4: Respondents Experience
4.2.7: Respondents Position
The results of the study revealed that 50% of the respondents are supervisors, 33% are
middle-level managers, and 17% are top-level managers as shown in Table 4.7.
Table 4.7: Respondents Position
Respondents Position Frequency Percentage
Supervisors 23 52
Middle – Level Managers 15 34
Top – Level Managers 6 14
Total 44
100
0 - 4 Years 23%
5 - 9 Years 36% 10 - 14 Years
27% Over 15 Years
14%0%
10%
20%
30%
40%
1 2 3 4
RESPONDENTS EXPERIENCE
39
The findings of the study revealed that majority of the respondents were supervisors with
52% as shown in Figure 4.5
Figure 4.5: Respondents Position
4.3 Resource Allocation on Implementation of Capital Expenditure Projects
4.3.1 Leadership Style
Under leadership style factor, respondents of the study were asked to indicate firstly whether
where resource allocation was the process of assigning and managing assets in a manner that
supports an organization's strategic goals. 87% of the respondents agreed with the statement,
4% were neutral, while 9% disagreed with a mean of 3.91 and a standard deviation of 1.053.
Whether resource allocation includes managing tangible assets such as hardware to make the
best use of softer assets such as human capital. 77.3% of the respondents agreed with the
statement, 18.2% were neutral, while 4.5% disagreed with a mean of 4.16 and a standard
deviation of 0.888. Thirdly, whether resource allocation involves balancing competing
needs in order to maximize limited resources and gain the best return on investment. 63.2%
agreed with the statement, 27.3% were neutral, while 4.5% disagreed with a mean of 3.84 and
standard deviation of 0.805 as shown in Table 4.8
Supervisors 52%Middle-Level
Managers 34%
Top-Level
Managers 14%
Respondents Position
1 2 3
40
Table 4.8: Leadership Style
Leadership Style
SD D N A SA Mean Standard
Deviation % % % % %
Resource allocation is the process of
assigning and managing assets in a
manner that supports an
organization's strategic goals.
4.5 6.8 11.4 47.7 29.5 3.91 1.053
Resource allocation includes managing
tangible assets such as hardware to
make the best use of softer assets such
as human capital.
0 4.5 18.2 34.1 43.2 4.16 0.888
Resource allocation involves balancing
competing needs in order to maximize
limited resources and gain the
best return on investment.
0 4.5 27.3 47.7 20.5 3.84 66
4.3.2 Project Flexibility
Under project flexibility factor respondents of the study were asked to indicate firstly, whether
in practicing resource allocation, organization must increase revenue, improve productivity,
and better brand recognition. 84.1% of the respondents agreed with the statement, while 11.4%
were neutral, while 4.6% disagreed with a mean of 4.14 and a standard deviation of 0.878.
Secondly, whether resource allocation in project management is concerned with creating a plan
which can help achieve future goals. 75% of the respondents agreed with the statement, 15.9%
were neutral, while 9.1% disagreed with a mean of 4.07 and a standard deviation 0.974.
Thirdly, whether resource allocation in project management is so important because it gives a
clear picture on the amount of work that has to be done. 81.8% of the respondents agreed with
the statement, 6.8% were neutral, while 11.4% disagreed with a mean of 4.09 and a standard
deviation of 1.030 as shown in Table 4.9
41
Table 4.9: Project Flexibility
Project Flexibility
SD D N A SA Mean Standard
Deviation % % % % %
In practicing resource allocation,
organization must increase revenue,
improve productivity, and better brand
recognition.
2.3 2.3 11.4 47.7 36.4 4.14 0.878
Resource allocation in project management is concerned with creating
a plan which can help achieve future
goals.
0 9.1 15.9 34.1 40.9 4.07 0.974
Resource allocation in project
management is so important because it
gives a clear picture on the amount of
work that has to be done.
2.3 9.1 6.8 40.9 40.9 4.09 1.030
4.3.3 Project Visibility
Under project visibility factors respondents of the study were asked to indicate firstly whether
resource allocation helps to schedule ahead and have an insight into the team’s progress,
including the right amount of time to everyone on the team. 70.4% of the respondents agreed
with the statement. 25% were neutral, while 4.5% disagreed with a mean of 3.89 and a standard
deviation of 0.813. Secondly, whether resource allocation allows planning and preparing for
the project’s implementation and to analyze existing threats and risks to the project. 72.7% of
the respondents agreed with the statement, 20.5% were neutral, while 6.8% disagreed with a
mean of 3.89 and a standard deviation of 0.920. Thirdly, whether the project schedule changes,
the resource allocation plan must also be flexible enough to adjust as these changes occur.
79.5% of the respondents agreed with the statement, 13.6% were neutral, while 6.8% disagreed
with a mean of 4.00 and a standard deviation of 0.915 as shown as Table 4.10
Table 4.10: Project Visibility
Project Visibility
SD D N A SA Mean Standard
Deviation % % % % %
Resource allocation helps to schedule
ahead and have an insight into the
team’s progress, including the right
amount of time to everyone on the team.
0 4.5 25.0 47.7 22.7 3.89 0.813
Resource allocation allows planning and
preparing for project’s implementation
and to analyze existing threats and
risks to the project.
2.3 4.5 20.5 47.7 25.0 3.89 0.920
As the project schedule changes, the
resource allocation plan must also be
flexible enough to adjust as these
changes occur.
2.3 4.5 13.6 50.0 29.5 4.00 0.915
42
4.3.4 Correlation for Resource Allocation
Table 4.11 indicated that leadership style is significant to resource allocation (r ꞊ 0.643,
p˂0.05). Project flexibility is significant to resource allocation (r ꞊ 0.777, p˂0.05). Project
Visibility is significant to resource allocation (r ꞊ 0.733, p˂0.05).
Table 4.11: Correlation for Resource Allocation
Resource
Allocation
Leadership
Style
Project
Flexibility
Project
Visibility
Resource
Allocation
1
Leadership Style .643**
.000
1
Project Flexibility .777**
.000
.828**
.000
1
Project Visibility .733**
.000
.721**
.000
.807**
.000
1
**Correlation is significant at the 0.01 level (2-tailed)
4.3.5 Regression for Resource Allocation
Table 4.12 indicated that 61% of the variance in resource allocation could be explained by the
variables (leadership style, project flexibility, project visibility). This meant that all these
variables were significant to resource allocation.
Table 4.12: Model Summary for Resource Allocation
Model R R Square Adjusted R Square Std. Error of the Estimate
.798 .687 .610 .60797
a. Predictor (Constant): Leadership Style, Project Flexibility, Project Visibility
4.3.5.1 Regression Coefficient for Resource Allocation
Table 4.13 provided the regression coefficient for resource Allocation. The significant value
of 0.751 showed that leadership style was insignificant to resource allocation since its p value
was >0.05. The significant value of 0.007 showed that project flexibility was significant to
resource allocation since its p value was ˂0.05. The significant value of 0.62 showed that
43
project visibility was insignificant to resource allocation since its p value was >0.05. The
equation for resource allocation was:
Resource Allocation ꞊ 0.531 0.073 Leadership Style + 0.707 Project Flexibility + 0.373
Project Visibility
The regression equation indicated that leadership style had a negative and insignificant effect
on resource allocation, thus for every increase in leadership style there would be a decrease of
7.3% on resource allocation. Project flexibility had a positive and significant effect on resource
allocation, thus for every increase in project flexibility there would be an increase of 70.7% on
resource allocation. Project visibility had a positive insignificant effect on resource allocation,
thus for every increase in creating project visibility there would be an increase of 37.3% on
resource allocation.
Table 4.13: Regression Coefficient for Resource Allocation
Model
Unstandardized
Coefficient
Standardized
Coefficient
T
Sig. β Std. Error βeta
1 (Constant) .531 .529 1.005 .321 Leadership Style .073 .227 .055 .320 .751
Project Flexibility .707 .251 .569 2.820 .007 Project Visibility .373 .194 .314 1.924 .062
a. Dependent Variable: Resource Allocation
4.4 Leadership Competence on Implementation of Capital Expenditure Projects
4.4.1 Managerial Competence
Under managerial competence factor, respondents of the study were asked to indicate firstly,
whether project implementation involves three types of activities: operational activities,
supporting activities and managerial activities. 77.2% of the respondents agreed with the
statement, 13.6% were neutral, while 9.1% disagreed with a mean of 3.98 and a standard
deviation of 0.902. Secondly, whether the operational activities, consist of transforming and
development of project input data into an expected result. 79.6% of the respondents agreed
with the statement, 15.9% were neutral, while 4.7 disagreed with a mean of 4.07 and a standard
deviation 0.900. Thirdly, whether the supportive activities are backup for operational and
44
managerial actions by creating conditions for their efficient and effective implementation.
79.6% of the respondents agreed with the statement, 11.4% were neutral, while 9.1% disagreed
with a mean of 4.05 and a standard deviation of 0.987 as shown in Table 4.14
Table 4.14: Managerial Competence
Managerial Competence SD D N A SA Mean Standard
Deviation % % % % %
Project implementation involves three
types of activities: operational activities,
supporting activities and managerial
activities.
0 9.1 13.6 47.7 29.5 3.98 0.902
The operational activities, consist of
transforming and development of
project input data into an expected
result.
2.3 2.3 15.9 45.5 43.1 4.07 0.900
The supportive activities are backup for
operational and managerial actions by
creating conditions for their efficient
and effective implementation.
2.3 6.8 11.4 43.2 36.4 4.05 0.987
4.4.2 Intellectual Competence
Under intellectual competence, respondents of the study were asked to indicate firstly, whether
the supportive activities are backup for operational and managerial actions by creating
conditions for their efficient and effective implementation. 75% of the respondents agreed with
the statement, 20.5% were neutral, while 4.5% disagreed with a mean of 4.07 and a standard
deviation of 0.873. Secondly, whether the competencies of a project manager result directly
from the performed functions and roles, as well as the implementation of tasks. 81.8% of the
respondents agreed with the statement, 13.6 were neutral, while 4.5% disagreed with a mean
of 4.25 and a standard deviation of 0.866. Thirdly, whether professional competencies are
technical, e.g. are needed to solve technical problems, to make decisions in specialized areas
and also to train others. 70.4% of the respondents agreed with the statement, 25% were neutral,
while 4.5% disagreed with a mean of 4.07 and a standard deviation of 0.925 as shown in Table
4.15
45
Table 4.15: Intellectual Competence
Intellectual Competence SD D N A SA Mean Standard
Deviation % % % % %
The managerial activities consisting of
harmonizing operational and supporting
activities and recognizing competencies
of the team.
0 4.5 20.5 38.6 36.4 4.07 0.873
The competencies of a project manager
result directly from the performed
functions and roles, as well as the
implementation of tasks.
0 4.5 13.6 43.1 47.7 4.25 0.866
Professional competencies are technical,
e.g. needed to solve technical problems,
to make decisions in specialized areas
and also to train others.
0 4.5 25.0 29.5 40.9 4.07 0.925
4.4.3 Emotional Competence
Under emotional competence, respondents of the study were asked to indicate firstly, whether
social competencies are based on the ability to cooperate with other people, to understand their
needs and aspirations and to motivate them. 72.7% of the respondents agreed with the
statement, 25% were neutral, while 23 disagreed with a mean of 4.09 and a standard deviation
of 0.936. Secondly, whether conceptual competencies represent the ability to coordinate and
integrate all interests and directions of the carried-out activities. 79.5% of the respondents
agreed with statement, 18.2% were neutral, 23% disagreed with a mean of 4.14 and a standard
deviation of 0.878. Thirdly, whether personality competencies are based on the ability of
project managers in matching their team personality in participating in endeavors. 68.2% of
the respondent agreed with statement, 25% were neutral, 6.8% disagreed with a mean of 3.98
and a standard deviation of 0.952 as shown in Table 4.16
46
Table 4.16: Emotional Competence
Emotional Competence SD D N A SA Mean Standard
Deviation % % % % %
Social competencies are based on the
ability to cooperate with other people, to
understand their needs and aspirations
and to motivate them.
2.3 0 25.0 31.8 40.9 4.09 0.936
Conceptual competencies represent the
ability to coordinate and integrate all
interests and directions of the carried-
out activities.
2.3 0 18.2 40.9 38.6 4.14 0.878
Personality competencies are based on
the ability of project managers in
matching their team personality in
participating in endeavors.
0 6.8 25.0 31.8 36.4 3.98 0.952
4.4.4 Correlation for Leadership Competence
Table 4.17 indicated that managerial competence was significant to leadership competence (r
꞊ 0.749, p ˂0.05). intellectual competence was significant to leadership competence (r ꞊ 0.700,
p˂0.05). emotional competence was significant to leadership competence (r ꞊ 0.697, p˂0.05).
Table 4.17: Correlation for Leadership Competence
Leadership
Competence
Managerial
Competence
Intellectual
Competence
Emotional
Competence
Leadership Competence
1
Managerial Competence .749**
.000
1
Intellectual Competence .700**
.000
.653**
.000
1
Emotional Competence .697**
.000
.622**
.000
.742**
.000
1
** Correlation is significant at the 0.01 level (2-tailed)
4.4.5 Regression for Leadership Competence
Table 4.18 indicated that 64% of the variance in leadership competence could be explained by
the variables (managerial competence, intellectual competence, emotional competence). This
meant that all these variables were significant to leadership competence.
47
Table 4.18: Model Summary for Leadership Competence
Model R R Square Adjusted R Square Std. Error of the Estimate
.816 .666 .641 .43789
a. Predictor (Constant): Managerial Competence, Intellectual Competence, emotional
Competence
4.4.5.1 Regression Coefficient for Leadership Competence
Table 4.19 provided the regression coefficient for leadership competence. The significant value
of 0.001 showed that managerial competence was very significant to leadership competence
since its p value was ˂ 0.05. The significant value of 0.146 showed that intellectual competence
was insignificant to leadership competence since its p value was >0.05. The significant value
of 0.076 showed that emotional competence was insignificant to leadership competence since
its p value was >0.05. Thus, the regression equation for leadership competence:
Leadership Competence ꞊ 0.094 + 0.438 Managerial Competence + 0.209 Intellectual
Competence + 0.264 Emotional Competence
The regression equation indicated that managerial competence had a positive and significant
influence on leadership competence, thus for every increase in managerial competence there
would be an increase of 43.8% on leadership competence. Intellectual competence had a
positive but insignificant influence on leadership competence, thus for every increase in
intellectual competence there would be an increase of 20.9% on leadership competence.
Emotional competence had a positive, but insignificant influence on leadership competence,
thus for every increase in emotional competence there would be an increase of 26.4% on
leadership competence.
48
Table 4.19: Regression Coefficient for Leadership Competence
Model Unstandardized
Coefficient
Standardized
Coefficient
T
Sig. Β Std. Error Βeta
1 (Constant) .094 .423 .222 .826 Managerial
Competence
.438 .123 .447 3.561 .001
Intellectual
Competence
.209 .141 .217 1.484 .146
Emotional
Competence
.264 .145 .258 1.820 .076
a. Dependent Variable: Leadership Competence
4.5 Effective Communication on Implementation of Capital Expenditure Projects
4.5.1 Communication Relationship
Under communication relationship, respondents of the study were asked to indicate firstly,
whether effective communication is a process of not only exchange information, news, ideas
and feelings but also create and share meaning. 86.4% of the respondents agreed with the
statement, 9.1% were neutral, while 4.5% disagreed with a mean of 4.27 and a standard
deviation of 0.817. Secondly, whether effective communication is about what language to use,
how to convey the message with respect to tone, feeling and body language. 86.4% of the
respondents agreed with the statement, 11.4% were neutral, while 2.3% disagreed with a mean
of 4.34 and a standard deviation of 0.776. Thirdly, whether effective communication helps the
team to come up with plan and strategy, and make it possible to keep everyone up to date and
informed. 81.8% of the respondents agreed with the statement, 18.2% were neutral, while none
disagreed with a mean of 4.34 and a standard deviation of 0.776 as shown in Table 4.20
49
Table 4.20: Communication Relationship
Communication Relationship
SD D N A SA Mean Standard
Deviation % % % % %
Effective communication is a process of
not only exchange information, news,
ideas and feelings but also create and
share meaning.
0 4.5 9.1 40.9 45.5 4.27 0.817
Effective communication is about what
language to use, how to convey the
message with respect to tone, feeling
and body language.
0 2.3 11.4 36.4 50.0 4.34 0.776
Effective communication helps the team
to come up with plan and strategy, and
make it possible to keep everyone up to
date and informed.
0 0 18.2 29.5 52.3 4.34 0.776
4.5.2 Communication Behavior
Under communication behavior, respondents of the study were asked to indicate firstly,
whether effective communication helps diverse team which can be cultural, geographical, age
related, level of education to work in harmony. 86.4% of the respondents agreed with the
statement, 13.6% were neutral, while none disagreed with a mean of 4.23 and a standard
deviation of 0.677. Secondly, whether effective communication helps project manager to
consider the changes and challenges all the way until the end of the project. 77.2% of the
respondents agreed with the statement, 20.5% were neutral, while 2.3% disagreed with a mean
of 4.14 and a standard deviation of 0.824. Thirdly, whether effective communication helps
team and stakeholders with issues and progress so that there will be no nasty surprises for them
to discover later. 68.1% of the respondents agreed with the statement, 27.3% were neutral,
while 4.5% disagreed with a mean of 3.93 and a standard deviation of 0.873 as shown in Table
4.21
50
Table 4.21: Communication Behavior
Communication Behavior
SD D N A SA Mean Standard
Deviation % % % % %
Effective communication helps diverse
team which can be cultural,
geographical, age related, level of
education to work in harmony.
0 0 13.6 50.0 36.4 4.23 0.677
Effective communication helps project
manager to consider the changes and
challenges all the way until the end of
the project.
0 2.3 20.5 38.6 38.6 4.14 0.824
Effective communication helps team
and stakeholders with issues and
progress so that there will be no nasty
surprises for them to discover later.
0 4.5 27.3 38.6 29.5 3.93 0.873
4.5.3 Communication Design
Under communication design, respondents of the study were asked to indicate firstly, whether
effective project management communication is about being there for everyone, being in touch
with the real challenges of the project. 61.3% of the respondents agreed with the statement,
29.5% were neutral, while 9.1% disagreed with a mean of 3.75 with a standard deviation of
0.918. Secondly, whether effective project management communication is about
understanding the real issues within the team who must deliver the project. 72.8% of the
respondents agreed with the statement, 20.5% were neutral, while 6.8% disagreed with a mean
of 4.02 and a standard deviation of 0.927. Thirdly, whether effective project management
communication is about understanding the issues of the sponsors who the team delivers the
project for. 79.5% of the respondents agreed with the statement, 15.9% were neutral, while
4.5% disagreed with a mean of 4.16 and a standard deviation of 0.861 as shown in Table 4.22
51
Table 4.22: Communication Design
Communication Design SD D N A SA Mean Standard
Deviation % % % % %
Effective project management
communication is about being there for
everyone, being in touch with the real
challenges of the project.
0 9.1 29.5 38.6 22.6 3.75 0.918
Effective project management
communication is about understanding
the real issues within the team who must
deliver the project.
0 6.8 20.5 36.4 36.4 4.02 0.927
Effective project management
communication is about understanding
the issues of the sponsors who the team
delivers the project for.
0 4.5 15.9 38.6 40.9 4.16 0.861
4.5.4 Correlation for Effective Communication
Table 4.23 indicated that communication relationship was significant to effective
communication (r ꞊ 0.846, p ˂0.05). communication behavior was significant to effective
communication (r ꞊ 0.845, p ˂0.05). communication design was significant to effective
communication (r ꞊ 0.772, p ˂0.05).
Table 4.23: Correlation for Effective Communication
Effective
Communication
Communication
Relationship
Communication
Behavior
Communication
Design
Effective
Communication
1
Communication
Relationship
.846**
.000
1
Communication
Behavior
.845**
.000
.793**
.000
1
Communication
Design
.772**
.000
.792**
.000
.805**
.000
1
**Correlation is significant at the 0.01 level (2-tailed)
52
4.5.5 Regression for Effective Communication
Table 4.24indicates that 78.4% of the variance in effective communication could be explained
by the variables (communication relationship, communication behavior, communication
design). This meant that communication relationship, communication behavior, and
communication design were significant to work engagement.
Table 4.24: Model Summary for Effective Communication
Model R R Square Adjusted R Square Std. Error of the Estimate
.894 .799 .784 .29601
a. Predictor (Constant): Communication Relationship, Communication Behavior,
Communication Design
4.5.5.1 Regression Coefficient for Effective Communication
Table 4.25 provided the regression coefficient for effective communication. The significant
value of 0.001 showed that communication relationship was very significant to effective
communication since its p value was ˂0.05. The significant value of 0.002 showed that
communication behavior was very significant to effective communication since its p value was
˂0.05. The significant value of 0.625 showed that communication design was insignificant to
effective communication since its p value was >0.05. Thus, the regression equation for
effective communication was:
Effective Communication ꞊ 0.534 + 0.412 Communication Relationship + 0.420
Communication Behavior + 0.052 Communication Design
The regression equation indicated that encouraging good work had a positive and significant
effect on effective communication, thus for every increase in communication relationship there
would be an increase of 41.2% on effective communication. Communication behavior had
appositive and significant effect on effective communication, thus for every increase in
communication behavior there would be an increase of 42% on effective communication.
Communication design had a positive but insignificant effect on effective communication, thus
for every increase in communication design there would be an increase of 5.2% on effective
communication.
53
Table 4.25: Regression Coefficient for Effective Communication
Model
Unstandardized
Coefficient
Standardized
Coefficient
T
Sig. β Std. Error Βeta
1 (Constant) .534 .303 1.763 .086 Communication
Relationship
.412 .118 .448 3.491 .001
Communication
Behavior
.420 .127 .437 3.298 .002
Communication
Design
.052 .106 .065 .492 .625
a. Dependent Variable: Effective Communication
4.6 Chapter Summary
This chapter has presented the findings of the data analysis. The data analysis was done by
breaking down factors identified through the data collected into simpler coherent part in line
with the purpose of the study in order to derive meanings. The tabulated data was analysed
quantitatively by calculating various percentages, while descriptive data was analysed
qualitatively by organizing collected data into meaningful notes. The presentation of the results
of quantitative analysis was in form of frequency tables and pie-charts so as to highlight the
results and to make it more illustrative and easier to understand and interpret, while the results
of qualitative analysis was in form of explanatory notes. The next chapter presents a summary
of the findings as well as discussions, conclusions, and recommendations.
54
CHAPTER FIVE
5.0 DISCUSSION, CONCLUSION AND RECOMMENDATION
5.1 Introduction
This chapter presented discussion, conclusion, and recommendations based on the research
questions of the study. Discussion on the effect of resource allocation was presented first,
followed by discussion on effect of leadership competence, and finally on the effect of effective
communication on implementation of capital expenditure projects of Airtel Kenya Limited.
Then also presented were the conclusion and recommendations.
5.2 Summary
The purpose of this study was to determine the effect of the factors on implementation of
expenditure capital projects of Airtel Kenya Limited. The research questions are: how does the
resource allocation factor affect the implementation of capital expenditure projects, how does
the leadership competence factor affect the implementation of capital expenditure projects, and
how does the effective communication factor the implementation of capital expenditure
projects.
With regards to the question one on resource allocation, the factors which affected
implementation of capital expenditure projects were: leadership style, project flexibility, and
project visibility. With respect to the question two on leadership competence, the factors which
affected implementation of capital expenditure projects were: managerial competence,
intellectual competence, and emotional competence. In relation to the third and last question
on effective communication, the factors which affected implementation of capital expenditure
projects were: communication relationship, communication behavior, and communication
design.
This study adopted a descriptive survey research design. The population of the study was
composed of 83 top – level managers, middle – level managers, and supervisors of Airtel
Kenya Limited in Nairobi County. Stratified sampling technique was adopted to select a
sample size of 66. The study primary data was collected using closed ended structured
questionnaires. Data was analyzed for descriptive statistics and inferential statistics using
55
Statistical Package for Social Sciences (SPSS). Findings were presented using tables and
figures.
The findings of the resource allocation indicated that 61% of the variance could be explained
by the variables (leadership style, project flexibility, and project visibility). Thus, for the
regression coefficient the equation for resource allocation was: Resource Allocation ꞊ 0.531
0.073 Leadership Style + 0.707 Project Flexibility + 0.373 Project Visibility. Therefore, the
regression equation indicated that leadership style, project flexibility, and project visibility had
a positive and insignificant influence on implementation of capital expenditure projects.
The findings of leadership competence indicated that 64% of the variance could be explained
by the variables (managerial competence, intellectual competence, and emotional
competence). Thus, the regression equation for leadership competence was: Leadership
Competence ꞊ 0.094 + 0.438 Managerial Competence + 0.209 Intellectual Competence +
0.264 Emotional Competence. Therefore, regression equation indicated that managerial
competence, intellectual competence, and emotional competence had a positive and significant
influence on implementation of capital expenditure projects.
The findings of effective communication indicated that 78.4% of the variance could be
explained by the variables (communication relationship, communication behavior,
communication design). Thus, the regression coefficient for effective communication was:
Effective Communication ꞊ 0.534 + 0.412 Communication Relationship + 0.420
Communication Behavior + 0.052 Communication Design. Therefore, the regression equation
indicated that communication relationship, communication behavior, and communication
design had a positive and significant influence on implementation of capital expenditure
projects.
5.3 Discussion
5.3.1 Resource Allocation on Implementation of Capital Expenditure Projects
The findings on the influence of resource allocation on implementation of capital expenditure
project revealed the existence of a positive relationship between resource allocation and
implementation of expenditure capital project. Thus, factors of resource allocation were
leadership style, project flexibility, and project visibility.
56
Under leadership style factor, respondents of the study were asked to indicate firstly whether
where resource allocation was the process of assigning and managing assets in a manner that
supports an organization's strategic goals. 87% of the respondents agreed with the statement,
4% were neutral, while 9% disagreed with a mean of 3.91 and a standard deviation of 1.053.
Whether resource allocation includes managing tangible assets such as hardware to make the
best use of softer assets such as human capital. 77.3% of the respondents agreed with the
statement, 18.2% were neutral, while 4.5% disagreed with a mean of 4.16 and a standard
deviation of 0.888. Thirdly, whether resource allocation involves balancing competing
needs in order to maximize limited resources and gain the best return on investment. 63.2%
agreed with the statement, 27.3% were neutral, while 4.5% disagreed with a mean of 3.84 and
standard deviation of 0.805.
Thus, majority of the respondents (87%) strongly agreed that where preferred self was not
allowed to emerge, millennial employees became defensive. Therefore, findings were in line
with the study conducted by (Kuhnert and Lewis, 1987). According to Kuhnert and Lewis
(1987), the theories of transformational leadership assume that a leader should be able to bring
positive changes in follower’s beliefs, values, personal disposition, perception and
expectations. Moreover, transformational leaders’ emphasis is on people and their motivations
by providing them with vision that satisfies their needs (Keegan and Den Hartog, 2004). In
times of change and uncertainty, transformational leadership behavior in temporary
organizations is found to be the most effective (Raziq et al., 2018). Transformational leaders
usually have a transforming effect on organizations as well as on individuals. As this is done
by proposing the requirement for change, creating new strategies and vision, enhancing
devotion to the vision for change, this would ultimately lead transformational leader to
transform the organization (Munyeki and Were, 2017). Transformational project leaders offer
broad range of capabilities including dynamic and flexible coordination of project resources,
strong collaborations across project boundaries and communication in midst of uncertainties
in managing projects (Aga et al., 2016; Raziq et al., 2018).
Under project flexibility factor respondents of the study were asked to indicate firstly, whether
in practicing resource allocation, organization must increase revenue, improve productivity,
and better brand recognition. 84.1% of the respondents agreed with the statement, while 11.4%
57
were neutral, while 4.6% disagreed with a mean of 4.14 and a standard deviation of 0.878.
Secondly, whether resource allocation in project management is concerned with creating a plan
which can help achieve future goals. 75% of the respondents agreed with the statement, 15.9%
were neutral, while 9.1% disagreed with a mean of 4.07 and a standard deviation 0.974.
Thirdly, whether resource allocation in project management is so important because it gives a
clear picture on the amount of work that has to be done. 81.8% of the respondents agreed with
the statement, 6.8% were neutral, while 11.4% disagreed with a mean of 4.09 and a standard
deviation of 1.030.
Thus, majority of the respondents (84.1%) strongly agreed that in practicing resource
allocation, organization must increase revenue, improve productivity, and better brand
recognition. Therefore, findings were in line with the study conducted by (Skorstad and
Ramsdal, 2016). According to Skorstad and Ramsdal (2016), efficient organizations are being
associated with flexibility especially when the focus on customers and environment are
changing at faster pace in general, the success and failure of companies majorly depends upon
the ability to change as well. Project flexibility provides an effective front-end mechanism in
aligning projects objectives with those of its stakeholders (Brennan, 2000). In this evolving
era, there is a need of project owners and users to have freedom to maneuver that helps them
to modify projects as they obtain more information about their needs and changes in the project
environment. Freedom to maneuver may settle depending on the future yet undetermined inner
choices may be viewed as an estimation of internal uncertainty of project. A project decision
should be within the room for maneuvering if it does not violate the outcomes of the previous
decision (Floricel et al., 2012).
Under project visibility factors respondents of the study were asked to indicate firstly whether
resource allocation helps to schedule ahead and have an insight into the team’s progress,
including the right amount of time to everyone on the team. 70.4% of the respondents agreed
with the statement. 25% were neutral, while 4.5% disagreed with a mean of 3.89 and a standard
deviation of 0.813. Secondly, whether resource allocation allows planning and preparing for
the project’s implementation and to analyze existing threats and risks to the project. 72.7% of
the respondents agreed with the statement, 20.5% were neutral, while 6.8% disagreed with a
mean of 3.89 and a standard deviation of 0.920. Thirdly, whether the project schedule changes,
58
the resource allocation plan must also be flexible enough to adjust as these changes occur.
79.5% of the respondents agreed with the statement, 13.6% were neutral, while 6.8% disagreed
with a mean of 4.00 and a standard deviation of 0.915.
Thus, majority of the respondents (79.5%) strongly agreed that the project schedule changes,
the resource allocation plan must also be flexible enough to adjust as these changes occur.
Therefore, findings were in line with the study conducted by (Wheatley, 2016). According to
Smith and Wheatley (2016), project visibility is a key ingredient for the successful project
management as a project may starts to stagnate if the relevant information is not exposed to all
stakeholders (Cross and Brohman, 2014; Patanakul, 2015; Perry, 2013). Project visibility
ensures that everyone stays engaged with the project through greater awareness of project
objectives, risk strategies and project outcomes (Wheatley, 2016). With visibility as a key
focus throughout the whole organization, companies are capable to enhance the
communication, push business objectives and encourage accountability toward accomplishing
the desired objectives Patanakul (2015). Project visibility is a blend to the management of
scheduling pressures and dependencies. It is referred as the degree of project exposure to its
stakeholders, though it is done through computer-based tracking systems to ensure the
monitoring of information relates to all activities and project dependencies (Wheatley,
2016). Sakamoto et al. (1996) reported that a high visibility index in projects demonstrate
significant improvements in project delivery time, costs and quality.
5.3.2 Leadership Competence on Implementation of Capital Expenditure Projects
The findings on the influence of leadership competence on implementation of capital
expenditure projects. Thus, factors of leadership competence were managerial competence,
intellectual competence, and emotional competence.
Under managerial competence factor, respondents of the study were asked to indicate firstly,
whether project implementation involves three types of activities: operational activities,
supporting activities and managerial activities. 77.2% of the respondents agreed with the
statement, 13.6% were neutral, while 9.1% disagreed with a mean of 3.98 and a standard
deviation of 0.902. Secondly, whether the operational activities, consist of transforming and
development of project input data into an expected result. 79.6% of the respondents agreed
59
with the statement, 15.9% were neutral, while 4.7 disagreed with a mean of 4.07 and a standard
deviation 0.900. Thirdly, whether the supportive activities are backup for operational and
managerial actions by creating conditions for their efficient and effective implementation.
79.6% of the respondents agreed with the statement, 11.4% were neutral, while 9.1% disagreed
with a mean of 4.05 and a standard deviation of 0.987.
Thus, majority of the respondents (79.6%) strongly agreed that whether the supportive
activities are backup for operational and managerial actions by creating conditions for their
efficient and effective implementation. Therefore, findings were in line with the study
conducted by Muller and Turner (2010). According to Muller and Turner (2010) Managerial
competence is an indispensable skill for a top manager, who must manage the entire project
team to achieve the implementation of expenditure capital projects. Managerial competence
embodies the following seven attributes: namely resource management, team management,
engaging communication, empowering, developing, target achieving, and management
experience (Dainty et al., 2005; Dulewicz and Higgs, 2005; Müller and Turner, 2010; Yang et
al., 2011; Müller et al., 2012).
Under intellectual competence, respondents of the study were asked to indicate firstly, whether
the supportive activities are backup for operational and managerial actions by creating
conditions for their efficient and effective implementation. 75% of the respondents agreed with
the statement, 20.5% were neutral, while 4.5% disagreed with a mean of 4.07 and a standard
deviation of 0.873. Secondly, whether the competencies of a project manager result directly
from the performed functions and roles, as well as the implementation of tasks. 81.8% of the
respondents agreed with the statement, 13.6 were neutral, while 4.5% disagreed with a mean
of 4.25 and a standard deviation of 0.866. Thirdly, whether professional competencies are
technical, e.g. are needed to solve technical problems, to make decisions in specialized areas
and also to train others. 70.4% of the respondents agreed with the statement, 25% were neutral,
while 4.5% disagreed with a mean of 4.07 and a standard deviation of 0.925.
Thus, majority of the respondents (81.8%) strongly agreed that the competencies of a project
manager result directly from the performed functions and roles, as well as the implementation
of tasks. Therefore, findings were in line with the study conducted by Dulewicz and Higgs
(2005) According to Dulewicz and Higgs (2005), The top managers’ IQ is an influential factor
60
involving three attributes, including critical analysis and judgment, cognitive ability, and
strategic vision (Müller and Turner, 2010; Müller et al., 2012). Critical analysis and judgment
refer to the top managers’ competence in terms of, for example, providing advice and
suggestions; understanding the project feasibility, design, and proposal; offering judgment and
decision making according to the available project information; understanding the potential
consequences of decisions; resolving dynamic and complex problems; and displaying insight
into the relationships and interests of project participants. Cognitive ability is measured by
awareness of both the advantages and disadvantages in the internal and external project
environment, recognition of the potential project risks, and skills in manager-level creative
thinking.
Under emotional competence, respondents of the study were asked to indicate firstly, whether
social competencies are based on the ability to cooperate with other people, to understand their
needs and aspirations and to motivate them. 72.7% of the respondents agreed with the
statement, 25% were neutral, while 23 disagreed with a mean of 4.09 and a standard deviation
of 0.936. Secondly, whether conceptual competencies represent the ability to coordinate and
integrate all interests and directions of the carried-out activities. 79.5% of the respondents
agreed with statement, 18.2% were neutral, 23% disagreed with a mean of 4.14 and a standard
deviation of 0.878. Thirdly, whether personality competencies are based on the ability of
project managers in matching their team personality in participating in endeavors. 68.2% of
the respondent agreed with statement, 25% were neutral, 6.8% disagreed with a mean of 3.98
and a standard deviation of 0.952.
Thus, majority of the respondents (79.5%) strongly agreed that conceptual competencies
represent the ability to coordinate and integrate all interests and directions of the carried-out
activities. Therefore, findings were in line with the study conducted by Zhang and Fan (2013).
According to Zhang and Fan (2013), EQ is measured by eight attributes: self-awareness,
organizational awareness, emotional resilience, intuitiveness, interpersonal relationships,
influence, motivation, and conscientiousness (Dulewicz and Higgs, 2005; Butler and
Chinowsky, 2006; Hawkins and Dulewicz, 2007; Sunindijo et al., 2007; Zhang and Fan,
2013). Self-awareness means the top managers’ ability to identify their own consciousness,
effectively managing and controlling their own emotions, and maintaining a degree of self-
61
belief. Organizational awareness refers to the capability to correctly recognize the emotional
and political atmosphere within the work team and to contribute to the development of the
team so that members regard themselves as partners in the enterprise. Emotional resilience
depends on maintaining emotional consistency under pressure, balancing emotional needs
between tasks in different situations and when confronting different concerns, and keeping
calm when faced with challenges and criticism. Intuitiveness means the ability to make clear
decisions by taking advantage of perceptual cognition when there is information asymmetry or
distortion.
5.3.3 Effective Communication on Implementation of Capital Expenditure Projects
The findings on the influence of effective communication on implementation of capital
expenditure projects Thus, factors of effective communication were communication
relationship, communication behavior, and communication design.
Under communication relationship, respondents of the study were asked to indicate firstly,
whether effective communication is a process of not only exchange information, news, ideas
and feelings but also create and share meaning. 86.4% of the respondents agreed with the
statement, 9.1% were neutral, while 4.5% disagreed with a mean of 4.27 and a standard
deviation of 0.817. Secondly, whether effective communication is about what language to use,
how to convey the message with respect to tone, feeling and body language. 86.4% of the
respondents agreed with the statement, 11.4% were neutral, while 2.3% disagreed with a mean
of 4.34 and a standard deviation of 0.776. Thirdly, whether effective communication helps the
team to come up with plan and strategy, and make it possible to keep everyone up to date and
informed. 81.8% of the respondents agreed with the statement, 18.2% were neutral, while none
disagreed with a mean of 4.34 and a standard deviation of 0.776.
Thus, majority of the respondents (86.4%) strongly agreed that effective communication is a
process of not only exchange information, news, ideas and feelings but also create and share
meaning. These findings were in line with the study conducted by Gibson and Cohen (2003).
According to Gibson and Cohen (2003), The project communication must focus on the
relationship between communication (i.e. data and information flow) and progress (Badir et
al., 2003). Here communication is looked at as a factor in the success or failure of projects and
62
project management (Söderlund, 2011). Katz’s (1982) seminal study about the longevity of
research and development (R & D) project groups brought attention to this research trajectory.
While looking to conceptualize temporal frameworks for changes that occur in project teams,
Katz found that poor communication impacts team performance negatively. And because Katz
discussed variations in communication activities, folded into this trajectory are investigations
into the strategies and instruments used for project communication such as such as reports,
dashboards, meetings and presentations (Henderson and Stackman, 2010).
Under communication behavior, respondents of the study were asked to indicate firstly,
whether effective communication helps diverse team which can be cultural, geographical, age
related, level of education to work in harmony. 86.4% of the respondents agreed with the
statement, 13.6% were neutral, while none disagreed with a mean of 4.23 and a standard
deviation of 0.677. Secondly, whether effective communication helps project manager to
consider the changes and challenges all the way until the end of the project. 77.2% of the
respondents agreed with the statement, 20.5% were neutral, while 2.3% disagreed with a mean
of 4.14 and a standard deviation of 0.824. Thirdly, whether effective communication helps
team and stakeholders with issues and progress so that there will be no nasty surprises for them
to discover later. 68.1% of the respondents agreed with the statement, 27.3% were neutral,
while 4.5% disagreed with a mean of 3.93 and a standard deviation of 0.873.
Thus, majority of the respondents (86.4%) strongly agreed that effective communication helps
diverse team which can be cultural, geographical, age related, level of education to work in
harmony. These findings were in line with the study conducted by Soderlund (2011).
According to Soderlund (2011) A common theme in the research on communication as either
a competency is that it is a process of moving information to project stakeholders as outlined
in project plans as well as various ad hoc requests (Pinto and Pinto, 1990; Richardson, 2010).
There is an emphasis on networks and necessary data (Slevin and Pinto, 1987), transmission
of information (Henderson, 2008) and the amount of information that moves among team
members (Pinto and Pinto, 1990; Griffen and Hauser, 1996; Hauptman and Hirji, 1996). What
best describes this approach is Dow and Taylor’s (2008) description of the three major
components of project management communication: communicating in a timely manner,
generating the right information and collecting, distributing and storing information. While
63
understanding the process of accumulating and transmitting data is important, there needs to
be more of a shift from the emphasis on data management to social interaction. Communication
is about how projects are created, directions decided and outcomes determined. In other words,
communication constitutes the dialogue between project managers and project stakeholders
that ultimately shapes the scope of projects (Söderlund, 2004; Winter et al., 2006).
Under communication design, respondents of the study were asked to indicate firstly, whether
effective project management communication is about being there for everyone, being in touch
with the real challenges of the project. 61.3% of the respondents agreed with the statement,
29.5% were neutral, while 9.1% disagreed with a mean of 3.75 with a standard deviation of
0.918. Secondly, whether effective project management communication is about
understanding the real issues within the team who must deliver the project. 72.8% of the
respondents agreed with the statement, 20.5% were neutral, while 6.8% disagreed with a mean
of 4.02 and a standard deviation of 0.927. Thirdly, whether effective project management
communication is about understanding the issues of the sponsors who the team delivers the
project for. 79.5% of the respondents agreed with the statement, 15.9% were neutral, while
4.5% disagreed with a mean of 4.16 and a standard deviation of 0.861.
Thus, majority of the respondents (79.5%) strongly agreed that effective project management
communication is about understanding the issues of the sponsors who the team delivers the
project for. These findings were in line with the study conducted by Jacobs (1994). According
to Jacobs (1994), Communication design takes the demands of interaction as a central
animating force in shaping the built-up human environment. According to Aakhus
(2007) and Aakhus and Jackson (2005) there are three interrelated starting points to
understanding communication design. First, communication design is a natural activity evident
in language use and the ability to utilize mutual knowledge for the purposes of communication
(Jacobs, 1994). Second, the built-up human environment reveals both designs for
communication and communication design work. Design is an open-ended process where
individual socio-technical and cognitive efforts yields interaction. And finally, artificial
environments from this perspective can be studied to advance knowledge about
communication because it examines how communication is enacted and institutionalized in
society.
64
5.4 Conclusions
5.4.1 Resource Allocation on Implementation of Capital Expenditure Projects
This study established that the resources of an organization consist of people, materials,
equipment, knowledge and time. Organizations typically have limited resources; therefore,
tradeoffs on what project resources are expended and when are made every day within
organizations. A resource allocation plan is an important tool in effective management of
scarce resources. The timing of the need of those resources can be and should be determined
within the project schedules. A resource plan, which describes the type of resource needed and
the timing of that need, is critical to effective resource management. Therefore, study
concluded that as the project schedule changes, the resource plan must also be flexible enough
to adjust as these changes occur.
5.4.2 Leadership Competence on Implementation of Capital Expenditure Projects
This study established that a qualified top manager should also possess strategic vision, which
encompasses the priorities for future working arrangements, a clear understanding of the
project’s future development, anticipation of potential changes during project construction, and
the ability to trade-off between the short- and long-term benefits of the project and between
economic social environment benefits. Therefore, the study concluded that as for the top
managers in the information and telecommunication industry, their IQ, and their ability to bring
the project to a successful conclusion, especially implementation part, relies heavily on their
critical analysis abilities and judgment, their cognitive ability, and their strategic vision.
5.4.3 Effective Communication on Implementation of Capital Expenditure Projects
This study established that successful project management communication is about being there
for everyone, being in touch with the real challenges of the project, understanding the real
issues within the team who must deliver the project as well as understanding the issues of the
sponsors who the team delivers the project for. Being present, visible and engaged with
everyone is important – during the good times and the challenging times. Communication is
not only about speaking to and hearing from people; it’s about understanding the complete
message. What language to use, how to convey the message with respect to tone, feeling and
body language all play an important role in the communication process. Therefore, the study
65
concluded that, a successful project manager can only maximize the effectiveness of
communication within the team by being prepared to lead by example. A big part of leadership
is to be present, and be prepared to communicate with all stakeholders at their respective levels.
5.5 Recommendations
5.5.1 Resource Allocation on Implementation of Capital Expenditure Projects
Resource allocation in project management is so important because it gives a clear picture on
the amount of work that has to be done. It also helps to schedule ahead and have an insight into
the team’s progress, including allocating the right amount of time to everyone on the team.
Resource allocation allows planning and preparing for the project’s implementation or
achieving goals. It is also possible to analyze existing threats and risks to the project.
Therefore, the study recommended that resource allocation should help to control all the
workload. This, as a result, contributed to team’s effectiveness to achieve satisfying and
exhaustive project.
5.5.2 Leadership Competence on Implementation of Capital Expenditure Projects
A qualified top manager should also possess strategic vision, which encompasses the priorities
for future working arrangements, a clear understanding of the project’s future development,
anticipation of potential changes during project construction, and the ability to trade-off
between the short- and long-term benefits of the project and between economic social
environment benefits. Therefore, the study recommended that top managers should relies
heavily on their critical analysis abilities and judgment, their cognitive ability, and their
strategic vision to bring the project to a successful conclusion especially on implementation
part.
5.5.3 Effective Communication on Implementation of Capital Expenditure Projects
Effective communication in project management should have three components:
communicating in a timely manner, should be generating the right information, collecting and
distributing, and storing information. While understanding the process of accumulating and
transmitting data is important, there needs to be more of a shift from the emphasis on data
management to social interaction. Therefore, the study recommended that effective
66
communication should be about how projects are created, directions decided and outcomes
determined through dialogue between project managers and project stakeholders that
ultimately shapes the scope of projects.
5.5.2 Recommendation for Further Research
This study focused on factors affecting implementation of capital expenditure projects and the
objectives were on resource allocation, leadership competence, and effective communication.
These objectives showed that the success in project was to achieve the requisite prospect of
the stakeholders and accomplished the project motive. However, these factors are not
exhaustive in terms what constitutes implementation of capital expenditure projects.
Researchers and academicians desiring to further studies on implementation of capital
expenditure projects, should explore other factors not considered in this study.
67
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APPENDICES
APPENDIX I: COVER LETTER
Joshua Mumo Nzuki
P.O. Box 14634-00800
Nairobi
Dear Respondent,
RE: REQUEST FOR YOUR PARTICIPATION IN MY RESEARCH PROJECT
My name is Joshua Nzuki currently pursuing a course towards completion of Global Master
of Business Administration (GMBA) from United States International University-Africa
(USIU-A). In partial fulfilment of the requirements of the award of the degree, I am required
to write a research project in the area of my study. My project topic is: Impact of
Implementation of capital expenditure projects by Airtel Kenya Limited.
You have been selected to participate in this study. Participation is voluntary. Kindly spare a
few minutes of your time to fill in the questionnaire to the best of your knowledge. Please note
that all the information gathered through this questionnaire will be treated with utmost
confidentiality.
Your participation in this study will be highly appreciated.
Yours Sincerely,
Joshua Mumo Nzuki
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APPENDIX II: RESEARCH QUESTIONNAIRE
Section 1: Demographic Information
Kindly Respond to the questions below by ticking in the boxes
1.What is your gender?
Male Female
2. What is your age?
20 – 24 Years 25 – 29 Years 30 – 34 Years Over 35 Years
3. What department do you work in?
Finance
Customer Service
Marketing/Sales
Human Resources
Operations
Other (Specify)
4. What are your years of work at Airtel Kenya Limited?
0 – 4 Years 5 – 9 Years 10 – 14 Years Over 15 Years
5. Kindly indicate your designation at Airtel Kenya Limited
Supervisor Middle-Level Manager Top-Level Manager
75
Section 2: Resources Allocation on Implementation of Capital Expenditure Projects
Kindly tick the appropriate answer. (Strongly Disagree = 1; Disagree = 2; Neutral = 3; Agree
= 4; and Strongly Agree = 5).
Resource Allocation 1 2 3 4 5
Resource allocation is the process of assigning
and managing assets in a manner that supports an
organization's strategic goals.
Resource allocation includes managing tangible
assets such as hardware to make the best use of
softer assets such as human capital.
Resource allocation involves balancing competing
needs in order to maximize limited resources and
gain the best return on investment.
In practicing resource allocation, organization must
increase revenue, improve productivity, and better
brand recognition.
Resource allocation in project management is
concerned with creating a plan which can help
achieve future goals.
Resource allocation in project management is so
important because it gives a clear picture on the
amount of work that has to be done.
Resource allocation helps to schedule ahead and
have an insight into the team’s progress, including
the right amount of time to everyone on the team.
Resource allocation allows planning and preparing
for the project’s implementation and to analyse
existing threats and risks to the project.
As the project schedule changes, the resource
allocation plan must also be flexible enough to
adjust as these changes occur.
76
Section 3: Leadership Competence on Implementation of Capital Expenditure Projects
Kindly tick the appropriate answer. (Strongly Disagree = 1; Agree = 2; Neutral = 3; Agree =
4; and Strongly Agree = 5).
Leadership Competence 1 2 3 4 5
Project implementation involves three types of
activities: operational activities, supporting
activities and managerial activities.
The operational activities, consist of transforming
and development of project input data into an
expected result.
The supportive activities are backup for
operational and managerial actions by creating
conditions for their efficient and effective
implementation.
The managerial activities consisting of
harmonizing operational and supporting activities
and recognizing the competencies of the team.
The competencies of a project manager result
directly from the performed functions and roles, as
well as the implementation of tasks.
Professional competencies are technical, e.g. are
needed to solve technical problems, to make
decisions in specialized areas and also to train
others.
Social competencies are based on the ability to
cooperate with other people, to understand their
needs and aspirations and to motivate them.
Conceptual competencies represent the ability to
coordinate and integrate all interests and directions
of the carried-out activities.
Personality competencies are based on the ability
of project managers in matching their team
personality in participating in endeavours.
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Section 4: Effective Communication on Implementation of Capital Expenditure Projects
Kindly tick the appropriate answer. (Strongly Disagree = 1; Disagree = 2; Neutral = 3; Agree
= 4; and Strongly Agree = 5).
Effective Communication 1 2 3 4 5
Effective communication is a process of not only
exchange information, news, ideas and feelings but
also create and share meaning.
Effective communication is about what language to
use, how to convey the message with respect to
tone, feeling and body language.
Effective communication helps the team to come
up with plan and strategy, and make it possible to
keep everyone up to date and informed.
Effective communication helps diverse team which
can be cultural, geographical, age related, level of
education to work in harmony.
Effective communication helps project manager to
consider the changes and challenges all the way
until the end of the project.
Effective communication helps team and
stakeholders with issues and progress so that there
will be no nasty surprises for them to discover later.
Effective project management communication is
about being there for everyone, being in touch with
the real challenges of the project.
Effective project management communication is
about understanding the real issues within the
team who must deliver the project.
Effective project management communication is
about understanding the issues of the sponsors who
the team delivers the project for.
The End of Questionnaire
