Cost Control Mechanisms and The Performance of Digital Transformation Projects in Milk Processing Firms in Kenya
DOI:
https://doi.org/10.53819/81018102t3163Abstract
The study aimed to assess how cost-control mechanisms influence the performance of digital transformation projects in milk-processing plants in Kenya. A descriptive research design was used, focusing on ICT staff, project managers, and finance officials in milk processing companies in Kenya. The study targeted 51 licensed milk processing plants in Kenya. The unit of observation was 561 individuals involved in digital transformation projects in milk processing in Kenya and a sample of 234 was used. The study cost control (B = .438, β = .391, p < .001) emerged as the strongest predictors of digital project performance, highlighting the importance of accurate forecasting and real-time monitoring in reducing overruns and enhancing efficiency. The study reinforces the Activity-Based Costing theory that cost allocation based on actual resource consumption by activities rather than traditional cost accounting. In addition, it emphasizes the need to adopt digital transformation in milk processing sector. Cost control is significant to ensure improved performance of digital transformation projects and all projects. Firms need to implement real-time financial tracking systems and performance dashboards to monitor expenditures throughout project lifecycles. Strengthening accountability through regular audits and variance analysis will enhance efficiency and minimize wastage.
Keywords: Cost Control, Mechanisms, Performance, Digital Transformation, Projects, Milk Processing Firms, Kenya
References
Albtoush, A. M., Doh, S. I., Rahman, A. R., & Albtoush, J. A. (2020). Factors effecting the cost management in construction projects. International Journal of Civil Engineering and Technology, 11(1), 105-111.
Alu, A. J., Muritala, T. A., Ogedengbe, F. A., Gambo, N., & Nwoye, M. I. (2024). "Impact of Project Cost Control on the Financial Performance of the Nigerian Construction Industry: A Qualitative Approach". Open Journal of Business and Management, 12, 2812-2823. Retrieved from https://doi.org/10.4236/ojbm.2024.124145
Bahr, S. (2020). "Innovation Transforming Dairy farming in Kenya". Retrieved from https://borgenproject.org/dairy-farming-in-kenya/
Bennett, S. (2025). "Project Cost Management Statistics". Retrieved from https://llcbuddy.com/data/project-cost-management-statistics
Biery, M. E. (2014). "A sure-fire way to boost the bottom line." Retrieved from https://www.forbes.com/sites/sageworks/2014/01/12/control-overhead-compare-industry-data
Bridges, J. (2024). "Project Cost Management Basics". Retrieved from https://www.projectmanager.com/training/basics-project-cost-management
Bwankarikari, A., & Irechukwu, E. N. (2022). "Project Cost Control and Performance of Bugarama Rice Project in Rwanda". Journal of Entrepreneurship & Project Management, 6(2), 60-81.
Cooper, R., & Kaplan, R. S. (1998). "Cost & Effect: Using Integrated Cost Systems to Drive Profitability and Performance". Harvard Business Press.
Debela, S. L. (2019). "Assessment of proejct cost management on the overall success of project management: The case of Suzo industries". MA in project management, St Mary's University.
Goldfarb, A. (2025). "Project Cost Management: Steps, Basics and Benefits". Retrieved from https://aliresources.hexagon.com/enterprise-project-performance/project-cost-management
Hooijer, E. (2024). "Activity Based Costing (ABC) : A Detailed Definition and Explanation". Retrieved from https://www.costperform.com/activity-based-costing-abc-a-detailed-definition-and-explanation
Kenya Diary Board. (2024). "Kenya Dairy Board report highlights key cost drivers in milk production". Nairobi: KDB.
Kenya Diary Board. (2025). "Kenya Diary Board". Retrieved from https://www.kdb.go.ke/
Kimiti, P. (2020). "Nexus between Cost Leadership Strategy and Performance: Fact or Fallacy in Milk Processing Firms in Kenya". International Business Research, 13(10).
KPMG. (2023). "2023 US Technology Survey". KPMG.
Meredith, J. R., Shafer, S. M., & Mantel-Jr, S. J. (2021). "Project Management: A Managerial Approach". Wiley.
Neves, J. (2023). 'project cost control: best practices and tools'. Retrieved from day.io/blog/project-cost-control/: https://day.io/blog/project-cost-control/
New KCC. (2024). "New Kenya Cooperative Creameries Ltd". Retrieved from https://www.newkcc.co.ke/
Njogu, J. K., & Murigi, E. M. (2023). "Growth strategies and performance of milk processing firms in Kenya". The Strategic Journal of Business & Change Management, 10(2), 815-838.
PMI. (2021). "A Guide to the Project Management Body of Knowledge (PMBOK guide) (7th ed.)". Newton Square, PA: Project Management Institute.
SAP news. (2020). "SAP Technology Makes New KCC ‘Cream of the Crop’ in East Africa". Retrieved from https://news.sap.com/africa/2020/10/sap-technology-makes-new-kcc-cream-of-the-crop-in-east-africa/
Yarbrough, Q. (2024). "Cost Control in Project and Business Management". Retrieved from https://www.projectmanager.com/blog/better-cost-expense-control
