MODERATING ROLE OF PROJECT ENVIRONMENT ON THE RELATIONSHIP BETWEEN FINANCIAL MANAGEMENT PRACTICES AND SAFETY OF ROAD CONSTRUCTION PROJECTS IN KENYA

Objective: To examine the moderating role of the project environment in the relationship between financial management practices and safety outcomes in road construction projects in Kenya. Theoretical Framework: The main underpinning concepts and theories are Construction Management Theory (CMT), Wreckers Financial Distress Theory (WFDT), Principal-Agent Theory (PAT) and Control Theory (CT), models, which provide a better understanding on the interplay of the study variables Method: The research employs a pragmatic paradigm, mixed-methods approach and cross-sectional survey design to obtain and analyze data from a randomly sampled 191 respondents in road construction projects within Nairobi County using interviews, questionnaires and observations. Results and Discussion: From the findings, effective financial planning and assessment positively influences safety (regression results: β=0.812, p<0.01; β=0.909, p<0.01) moderated by project environment (regression results: β=0.452, p<0.01). Therefore, the variables significantly influence safety, while project environment plays a critical role. The study suggests a robust financial management, combined with a project environment, which enhances safety in road construction. The study focused on Nairobi County, hence limit generalizability beyond Kenya. Research Implications: The established integrated model helps organizations and project managers match financial management techniques to environmental conditions to improve safety and assist policymakers in financial control and road safety. Originality/Value: The study contributes to literature by addressing knowledge gaps and underexplored areas of prior research on road construction, project environment and safety. Mixed methods approach provides data triangulation and utilizes larger and diverse sample to improve generalizability compared to single methodologies and limited data sources in prior studies.