ABSTRACT

The internal environment of organizations is one of the main factors that determine project performance in different industries. The study specifically examined how various variables such as the structure, culture, resource capability and employee competency affect projects success. The resource dependency theory, resource-based view, and the open systems theories were used with a descriptive research design. The research targeted responses from 49 registered local construction firms. The study further adopted census survey, obtaining a response of 98 employees from Nairobi. Secondary and primary data was used. The research used means and standard deviation in the descriptive analysis while for the inferential statistics the research utilized correlation and regression tests. A response rate of 80% was obtained. The research results showed that internal organization environment determined (R 2=.794) project success. The study showed that there was significant effect of organization structures, organization culture, resource capability and employee competency on project performance. The study concluded that leadership skills, enhanced employee competency and better resource mobilization and utilization were key predictors of project performance. It was the researcher’s recommendation that the management equips the employees with better technical skills will lead to project results. Further, organization should adopt an elaborate rewards and recognition system. The study also recommends that organizations should implement a robust internal structure that will foster coordination within the firm.