The Effect of Asset Management On Company’s Logistical Performance. A Case of Strong Construction Ltd

Abstract

The efficiency of asset management for various reasons has been the focus for companies, Managers and investors doing construction businesses. The main objective of this research is to ascertain the effect of asset management practices on logistical performance within Strong Construction Ltd. To accomplish the main objective, three specific objectives were formulated. These include; to analyze the effect of standards compliance logistical performance within Strong Construction Ltd; to examine the effect of assets maintenance on logistical performance within Strong Construction Ltd and to assess the effect of budget allocation of funds on logistical performance within Strong Construction Ltd. The related theories including the resource based theory and the contingency theory, were used and analyzed. The population of the research are 200 participants and sample size is 66 respondents. The research tools for data collection are questionnaire, interview and documentation. The findings indicated that each unit of compliance with standards do not significantly influence each unit of logistical performance in Strong Construction Ltd. There is increase in each unit of logistical performance when the unit of budget allocation of funds increases at 55.7% in Strong Construction Ltd. There is an increase in each unit of operation performance when the unit of assets maintenance increases at 30.7% in Strong Construction Ltd. Budget allocation of funds affects logistical performance more than assets maintenance in the same perspective compliance with standards in asset management is on the third priority to affect logistical performance in Strong Construction Ltd. The results indicated that there is a positive auto-correlation between asset management (assets maintenance, compliance with standards, budget allocation of funds) and logistical performance in Strong Construction Ltd. This means that asset management can be associated with logistical performance in Strong Construction Ltd. There is a positive strong correlation between asset management and logistical performance (R=0.993). The study concludes also that asset management (compliance with standards; assets maintenance and budget allocation of funds) had positive and significant effect cost efficiency in Strong Construction Ltd. This means that as much as asset management is taught to the employees, there was an improvement on logistical performance that will results in cost effective use of resources in Strong Construction Ltd. This indicates that once employees are integrated in asset management system they will have accountability that will contribute to logistical performance toward the achievement of the set goals within Strong construction Ltd.