Relationship between performance contracting and the implementation of strategic objectives in Kenyan public universities

Abstract

This study sought to determine the link between Performance Contracting and implementation of strategic objectives in Kenyan Public Universities. The main objective was to establish the extent of utilization of the Performance Contract (PC) as a tool for implementation for strategic objectives in Kenyan public universities. The study was anchored on the Balanced Score Card theory and used a combination of descriptive survey research design and correlation research design. The target population for this study included thirty-one (31) public universities in Kenya; a sample of 62 respondents was drawn from senior management and officers in charge of PC and strategy implementation in each University as well as 10 key informants from the Ministry of Education and the Public Service Performance Management and Coordination Office. Primary data was collected using structured questionnaires. The data were analyzed using descriptive statistics; correlation and regression analysis was computed to determine the degree of association between the performance of Kenyan public universities in performance contracting and implementation of their strategic objectives. Methodological triangulation and pilot testing were adopted to test for validity while Cronbach Alpha reliability Correlation Coefficient was used to test the reliability of the data. The study established that utilization of Performance Contracts contributes to 74.2% of the changes in strategy implementation in Public Universities in Kenya. It recommends that the universities should focus on the PC as a tool to enhance strategy implementation, allocate more funds for strategy implementation and improve their financial standing by engaging in more income-generating activities.

Keywords: {'name': 'Performance Contracts, Strategy Implementation, Balanced Score Card theory, Public Universities '}

Authors & affiliations

Elaine Chepkoskei
Affiliation not supplied

Kellen Kiambati
Affiliation not supplied

Irura Ng’ang’a
Affiliation not supplied

Deposited references

Supplied references, not a list of publications citing this article.

DOI: 10.1016/S2212-5671(16)00059-9

DOI: 10.6007/IJARBSS/v4-i10/1256

Busienei, P. K. (2010). The impact of performance contracting on the financial performance of public universities in Kenya (Doctoral dissertation).

Chacha, M. A. (2009). A study of performance contracting as a tool for strategy implementation in catering and tourism development levy trust, Kenya (Doctoral dissertation, University of Nairobi).

Chiuri, B. W. (2015). Challenges of Strategy Implementation in Higher Education Institutions in Kenya (Doctoral dissertation, JKUAT).

Choke, C. A. (2006). The perceived link between strategic planning and performance contracting in Kenyan state corporations (Doctoral dissertation).

DOI: 10.1108/09513550210448607

Ethelmary, D., Chukwuma, O. A., & Joy, O. O. Safety management and organizational performance of selected manufacturing firms in Awka Metropolis.

Fathi, M. and L. Wilson (2009). Strategic Planning in Colleges and Universities. The Business Renaissance Quarterly (4)1, pp. 91–103.

Government of Kenya (2010), Economic Recovery Strategy for Wealth and Employment Creation. Nairobi: Government Printer.

Gendi F.O. (2013). Balanced Scorecard as a Strategy Implementation Tool at the Kenya Pipeline Company Limited. Unpublished MBA Research Project, School of Business, University of Nairobi.

DOI: 10.1108/17410400610682488

DOI: 10.1080/01924036.2000.9678651

DOI: 10.1111/1467-9299.00206

DOI: 10.1111/j.1759-5436.2010.00182.x

Kaplan, R. S., & Norton, D. P. (2008). The execution premium: Linking strategy to operations for competitive advantage. Harvard Business Press.

DOI: 10.6007/IJARBSS/v7-i12/3735

Kobia, M., & Mohammed, N. (2006, December). The Kenyan experience with performance contracting. In 28th AAPAM Annual Round Table Conference.

Leseiyo, M., & Ngui, T. (2019). Influence of Employee Motivation on Performance of Public Universities in Kenya: A Case Study of Moi University, Nairobi Campus. International Journal of Research and Innovation in Social Science.

DOI: 10.1506/car.24.3.10

DOI: 10.1006/mare.2000.0154

Miles, M. B., Huberman, A. M., Huberman, M. A., & Huberman, M. (1994). Qualitative data analysis: An expanded sourcebook. sage.

Muchira, W. N. (2013). Relationship between strategy implementation and performance in commercial banks in Kenya. Unpublished MBA project, School of Business University of Nairobi.

Muraguri, N. and Wagoki, J. (2016). Influence of performance contracting on strategy implementation at Mount Kenya University. International Journal of Economics, Commerce and Management. Vol. IV, Issue 5, pp 297-330

DOI: 10.4236/oalib.1102850

Ndungu, P., & Kyalo, J. (2015). An evaluation of enterprise resource planning systems implementation experiences for selected public universities in Kenya. International Journal of Scientific Research and Innovative Technology, 2(2), 43-56.

Ngesa, A. R. (2010). Institutes in timely completion of infrastructure projects: a case study of world bank financed projects in the road sub-sector (Doctoral dissertation).

Ng'ethe, J. M. (2011). Determinants of Academic Staff Retention in Public Universities in Kenya. Retrieved from http://hdl.handle.net/123456789/1418

Njoroge, J. K. (2015). Strategy implementation, performance contracting, external environment and performance of Kenyan state corporations. University of Nairobi, Nairobi, Kenya.

Nyakeriga, C.K. (2015). Factors influencing strategic plan implementation in the newly established public universities in Kenya. Masters project. Eastern Kenya University. Kenya

Okech, T. C. (2017). Impact of performance contracting on efficiency in service delivery in the public sector. International Journal of Economics, Commerce and Management, 1(5), 198-213.

Onyango, S. O. (2015) Influence of implementation of evaluation approaches on performance of Kenya Police Service in Nakuru County, Kenya.

DOI: 10.1108/09604521311303426

Seddon, J. (2008). Systems thinking in the public sector. Triarchy Press.

Simpson, S.N. & Nyante,H. (2015). Evaluating Performance Contracting as a Tool for Evaluating State-Owned Enterprises in Two Developing Countries: A Look at the Performance Dimensions. International Institute for Science, Technology and Education (IISTE), 22(5), 2225-0972

DOI: 10.2308/bria.2006.18.1.185

Taleghani, M. (2011). Customer Complaints Management: Concepts and Applications. Journal of American Science 7(1). pp.341-347.

DOI: 10.1109/ICSSSM.2010.5530119

Trivedi, P., (1994). Memorandum of understanding – an approach to improving Public enterprise performance. International Management Publishers.

Uyar, A. (2010). Development of non-financial measures as contemporary performance measurement tools. World of Accounting Science, 12(1), 209-238.

DOI: 10.1016/j.emj.2013.10.001

Weiss, T., & Potts, V. (2012). An Evaluation of Construction Management.

Žmuk, B., Lutilsky, I. D., & Dragija, M. The choice of a sampling procedure for a (too) small target population: The case of Croatian public hospitals.