The Impact of Asset Management on Company’s Operational Performance A Case of Horizon Construction Ltd

Gikongo Kayitare Sam

doi:10.18535/ijsrm/v9i10.em06

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 operational performance within Horizon Construction Ltd. To accomplish the main objective, three specific objectives were formulated. These include; to analyze the effect of standards compliance operational performance within Horizon Construction Ltd; to examine the effect of assets maintenance on operational performance within Horizon Construction Ltd and to assess the effect of budget allocation of funds on operational performance within Horizon 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 operational performance in Horizon Construction Ltd. There is increase in each unit of operational performance when the unit of budget allocation of funds increases at 55.7% in Horizon Construction Ltd. There is an increase in each unit of operation performance when the unit of assets maintenance increases at 30.7% in Horizon Construction Ltd. Budget allocation of funds affects operational performance more than assets maintenance in the same perspective compliance with standards in asset management is on the third priority to affect operational performance in Horizon 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 operational performance in Horizon Construction Ltd. This means that asset management can be associated with operational performance in Horizon Construction Ltd. There is a positive strong correlation between asset management and operational 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 Horizon Construction Ltd. This means that as much as asset management is taught to the employees, there was an improvement on operational performance that will results in cost effective use of resources in Horizon Construction Ltd. This indicates that once employees are integrated in asset management system they will have accountability that will contribute to operational performance toward the achievement of the set goals within horizon construction Ltd.

References

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[refR-1] Adalia, A., & Marolle, D. (2017). Operational and Employees Performance of Sernian Industrial Companies with ISO 9001 Certificate. Journal of Engineering Management and Competitiveness (JEMEC), 35-43.Google Scholar ↗

[refR-2] Allan W. (2016). Improvement in Construction Industry. United Kingdom: World Economic Forum.Google Scholar ↗

[refR-3] Arcadis , L. (2014). Asset Management for the Road sector. Journal for management and development, 33.Google Scholar ↗

[refR-4] Arcadis. (2015). The future of asset management. Washington: International journal of innovation, management and technology,.Google Scholar ↗

[refR-5] Arcadis, L. (2016). Tropica City: The future of International Construction.Google Scholar ↗

[refR-6] Arcadis.K. (2015). Asset management asset survey: Relative maturity asset.Google Scholar ↗

[refR-7] Azzone. (2005). Enterprise risk Management and Internal audit. Portugar: Managerial Auditing Journal.Google Scholar ↗

[refR-8] Barney, F. (1995). Efficiency of Resource Managment. Washington DC.Google Scholar ↗

[refR-9] Best.R, C. (2003). Workplace strategies and facilities management. London: Butterwork Heineman.Google Scholar ↗

[refR-10] Connor , J. (2002). Managing Resources in Development Countries. India.Google Scholar ↗

[refR-11] Davis.R. (2003). Introduction to the management of physical assets.Google Scholar ↗

[refR-12] Delaney, C. (2011). Asset management to Achieve the Goals in Construction Industry. USA.Google Scholar ↗

[refR-13] Eisenhard, L., & Martin, A. (2000). Management of Resource in Bridge Building. Texas.Google Scholar ↗

[refR-14] Enmon, P. (2014). Organizational performance. In Achievement of organization (p. 102). United Kingdom.Google Scholar ↗

[refR-15] Fred, K. (2018). An Evaluation of Rwanda Vision 2020's Achievements. Kigali City, 55.Google Scholar ↗

[refR-16] Grawtz, D. (2016). The Usefulness of Qualitative and Quantitative Approaches and Methods in Researching Problem-Solving Ability in Science Education Curriculum. Journal of Education and Practice, 10-11.Google Scholar ↗

[refR-17] Gross.I. (2006). Risk Management and the Role of the audit Committee Head of Internal Audit & Projects. England: Institute of Internal Auditors.Google Scholar ↗

[refR-18] Gulick, P., & Uruick, S. (2001). Theory of Leading an Organizations. United Kingdom.Google Scholar ↗

[refR-19] James, L., & Isabel, B. (2013). The Basic Budgeting Problem. Management, 38.Google Scholar ↗

[refR-20] Kaplan. (1988). Measures that drive performance. Rio de janerio: Editora Campos.Google Scholar ↗

[refR-21] Karim, A. (2013). An Evaluation of Financial Performance of Private Commercial Banks in Bangladesh. Bangladesh: Journal of business studies quarterly. .Google Scholar ↗

[refR-22] Katz, L., & Kahn, P. (1966). Achievement to Company's Organizationa. Chicago.Google Scholar ↗

[refR-23] Khan, F., & James, P. (2014). An Economic Analysis of the Sector. United Kingdom.Google Scholar ↗

[refR-24] Kitaka, P. (2014). Project delays and financial implications on construction firms in rwanda a case study of construction projects for cavicon consultants based in kigali city. Kigali: Mount Kenya University Rwanda.Google Scholar ↗

[refR-25] Kuhn. (2011). Research on asset management for safety and operations. Texas department of Transport.Google Scholar ↗

[refR-26] Kumar.A. (2006). Strategic approach to infrastructure asset management. London: Queensland University of Technology.Google Scholar ↗

[refR-27] Leving, P., & Nigro, S. (1995). Flexibility in Business Management. Boduin.Google Scholar ↗

[refR-28] M.D, A. (2015). Operational performance and profitability. Bangladesh: International journal of entrepreneurship and development studies. .Google Scholar ↗

[refR-29] Mann, L. (1988). Decision making in practice. Australia: Curriculum Development Centre.Google Scholar ↗

[refR-30] Mann.L. (1988). Decision making in practice. Australia: Curriculum Development Centre.Google Scholar ↗

[refR-31] Mugenda. (2006). Impact of statistical analysis in companys of kenya. KENYA.Google Scholar ↗

[refR-32] Nagalingan, E. (2011). Construction in Development Country. Timex.Google Scholar ↗

[refR-33] Nel, F., & Jooste, P. (2010). Effectifce of quality management System(QMS) On construction projects. International Journal of Marketing Studies, 13.Google Scholar ↗

[refR-34] Nel.T. (2016). A technologically-driven asset management approach to managing physical assets. Southen Africa: South African journal of industrial engineering.Google Scholar ↗

[refR-35] Neyestani, M., & Uanzon, J. (2016). Competition in Construction Industry. United Kingdom.Google Scholar ↗

[refR-36] OECD. (2010). Effective Asset Management . UK.Google Scholar ↗

[refR-37] OECD. (2010). Effective of Asset Management. UK: OECD.Google Scholar ↗

[refR-38] Onyango, F. (2019). Business organization between efficiency and effectiveness. International Scientific Journal, 33.Google Scholar ↗

[refR-39] Potocan. (2011). Business operations between efficiency and effectiveness. Journal for management and development,2, 50-62.Google Scholar ↗

[refR-40] Roethlisberger, V., & Dickson, K. (1997). Organisational Performance Theory. Belgrade.Google Scholar ↗

[refR-41] Rosengard.F. (2011). Importance of microfinance on development of small and medium enterprises. California: Building Capacities for Change.Google Scholar ↗

[refR-42] RPPA. (2014). Categorization of companies operating in the field of building and civil engineering works. Kigali: Republic of Rwanda.Google Scholar ↗

[refR-43] Siborurema, J. B. (2015). The effects of projects funding on their performance in Rwanda: A case study of Bukomane-Gikoma road. International Journal of Economics, Commerce and Management, 3(8), 564-594.Google Scholar ↗

[refR-44] SKORUPKA. (2008). Identification and initial risk assessment of construction projects in Poland. Poland: Journal of management in engineering.Google Scholar ↗

[refR-45] Sporta. (2018). The effect of operational efficiency as a financial distress factor on Financial Performance on Commercial Banks in Kenya. Kenya: International journal of business management,.Google Scholar ↗

[refR-46] Springer. (2004). International Standards for the Professional Practice of Internal Auditing. Brazile: The Institute of Internal Auditors.Google Scholar ↗

[refR-47] T.W, C. (2000). Asset management in transportation research record. Washington D.C: TRB National Research Council.Google Scholar ↗

[refR-48] Truong. (2011). Operational performance. Kigali: INILAK.Google Scholar ↗

[refR-49] Truong, V. K. (2008). Performance measurement of construction firms in developing countries.Google Scholar ↗

[refR-50] Wasana; Rosemann. (2012). Measuring process -modelling sucess and structuring. Washington DC: Peter Bombger.Google Scholar ↗