Project Team Rewards and Performance of Information Technology-Based Projects in Commercial Banks in Kenya

Abstract

Purpose: The expected outcome of projects is to achieve a positive performance consistently. Yet, there is no agreed definition of project performance, which complicates the achievement of the purpose. Projects in Kenya are mostly complex and difficult to manage and project team management practices are mostly used in projects for effective functioning. However, project managers in Kenya have been focusing on technical constraints of projects and neglecting project teams’ related constraints. The objective of the study was to investigate the influence of project team rewards on project performance in commercial banks in Kenya. Methods: The study adopted a pragmatic research approach. A cross-sectional study design and explanatory research design were adopted in the study. The unit of analysis was 429 projects in the 39 commercial banks operating in Kenya as of close of business on 31st December 2020 categorized into 20 types of Information technology projects. The target population was 195 Information Technology project managers as well as 78 staff working in human resource department, 78 staff working in finance department, and 78 staff working in operations departments in the 39 commercial banks operating in Kenya. The study used stratified random sampling to choose 206 respondents from the study population. Secondary and primary data was employed in this study. Annual reports of commercial banks provided secondary data. In addition, a semi-structured questionnaire was adopted to obtain data. Qualitative data, which was obtained from open-ended questions, was analyzed by use of thematic analysis, and the results were presented in a descriptive form. Inferential and descriptive statistics will be used to analyze quantitative data with the help of Statistical Package for Social Sciences (SPSS version 26). Descriptive statistics included frequency distribution, mean, standard deviation, and percentages. Inferential statistics included univariate regression analysis and Pearson correlation. Results: The study found that project team rewards had a significant effect on performance of information technology-based projects in commercial banks in Kenya. Conclusion: The study recommends that commercial banks should also diversify and strengthen their reward structures to better align with team members’ contributions and achievements. They should further strengthen their recognition and promotion programs to ensure that these elements are consistently applied and effectively contribute to team performance.