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

Author

Listed:
  • Elaine Chepkoskei

    (School of Business, Karatina University, Nyeri, Kenya)

  • Kellen Kiambati

    (Lecturer, Strategic Management,School of Business, Karatina University, Nyeri, Kenya)

  • Irura Ng’ang’a

    (Planning & Entrepreneurship, Garissa University, Kenya)

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. Key Words: Performance Contracts, Strategy Implementation, Balanced Score Card theory, Public Universities

Suggested Citation

  • Elaine Chepkoskei & Kellen Kiambati & Irura Ng’ang’a, 2021. "Relationship between performance contracting and the implementation of strategic objectives in Kenyan public universities," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(2), pages 170-182, March.
    • Handle: RePEc:rbs:ijbrss:v:10:y:2021:i:2:p:170-182
    DOI: 10.20525/ijrbs.v10i2.1009
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    References listed on IDEAS

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    1. Kipkoech Sammy Kimutai & Mercy Kwambai, 2017. "Effect of Office Automation on Organizational Effectiveness of Public Universities in Kenya," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(12), pages 1061-1071, December.
    2. Mary A. Malina & Hanne S. O. Nørreklit & Frank H. Selto, 2007. "Relations among Measures, Climate of Control, and Performance Measurement Models," Contemporary Accounting Research, John Wiley & Sons, vol. 24(3), pages 935-982, September.
    3. John Seddon & Carlton Brand, 2008. "Debate: Systems Thinking and Public Sector Performance," Public Money & Management, Taylor & Francis Journals, vol. 28(1), pages 7-9, February.
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    5. Emily J. Bomett & Jonah N. Kindiki & Jackson K. Too, 2014. "Employee Perception towards Signing Performance Contract in Public Universities in Kenya," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(10), pages 580-600, October.
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