MODERATING EFFECT OF PORTFOLIO RISK MANAGEMENT ON PERFORMANCE OF KENYA WATER SERVICE BOARDS

Abstract

The majority of water service boards are investing millions of money in different portfolios with the objective of profit maximization. Therefore, the purpose of this study was to determine the influence of project portfolio management practices on the performance of water service boards in Kenya. The specific objectives of the study were; to determine the effect of project evaluation, project selection, and prioritization and to establish the moderating effect of portfolio risk management on the relationship between project portfolio management practices and performance of water service boards in Kenya. The study was based on Modern Portfolio Theory, Multi-Criteria Utility theory. The study was population the employees of water boards in Kenya which include the coast water service board (CWSB), Rift valley water service board (RVSB), Lake Victoria North(LVNSB), Tana water, TanaAthi water service board, Athi water service board. The unit target constituted Engineers, senior management, middle management, and project team. The study targeted a population of 1310 key technical staffs in the project. SPSS version 24.0 was used to process and analyze the collected data using descriptive and Inferential statistics. Multiple regression analysis was used to test the relationship between Page 107 Licensed under Creative Common ©Author(s) project portfolio management practices and organizational performance. The study found that there is a significant influence of project evaluation as a project portfolio management practice on the performance of water service boards in Kenya. The study thus concludes that companies should consider adopting various project prioritization methods such as ranking method, scoring model, Analytic Hierarchy Process (AHP) Technique. Keywords: prioritization, allocation, portfolio management, performance, Analytic hierarchy process, water service boards