Performance Contracting Aspects and Strategy Implementation in Public Corporations in Kenya

Stella G Kabuga ,Henry Kombo

doi:10.7176/ejbm/13-10-02

Abstract

Literature suggests that performance contracting plays a significant role in strategy implementation. Many studies have been done on performance contracting, but none has focused on the effect of performance contracting aspects on implementation of strategy. This study aimed at establishing the effect of performance contracting aspects on strategy implementation in public corporations in Kenya. The study targeted 168 public corporations in Kenya out of which a sample of 117 corporations was studied. The data was collected using questionnaires. Regression analysis was used to determine the effects of performance contracting aspects on strategy implementation. The results revealed that performance contracting aspects that is, performance agreement, evaluation and recognition singly and jointly had a positive eNffect on strategy implementation. The study therefore recommends that public corporations should embrace performance contracting to enhance strategy implementation. The study makes recommendations for further research. Keywords: Performance contracting, Performance agreement, performance evaluation, performance recognition and strategy implementation DOI: 10.7176/EJBM/13-10-02 Publication date: May 31 st 2021

Highlights

Performance contracting has been applauded as an effective and promising way of ensuring the performance success in private and government owned institutions around the globe (Kwedho, 2015)
The dimensions of performance contracting aspects and strategy implementation were subjected to reliability test and the results showed Crobach alpha of 0.923 for strategy implementation, 0.986 for performance agreement, 0.883 for performance evaluation and 0.817 for performance recognition
The aim of the study was to determine the effect of performance contracting aspects on strategy implementation

Summary

Introduction

Performance contracting has been applauded as an effective and promising way of ensuring the performance success in private and government owned institutions around the globe (Kwedho, 2015). According to Muraguri and Wagoki (2016), performance contracting plays a significant role as a promoter of strategy implementation. It has been postulated to boost the relationship between strategy implementation and organizational performance (Muraguri & Wagoki, 2016). Despite the fact that performance contracting appears to play a critical role in ensuring success in strategy implementation, there appears to be scanty empirical literature on the relationship between performance contracting aspects (Performance agreement, performance evaluation and performance recognition) and strategy implementation. Past studies on performance contracting have focused on the challenges of performance contracting with little attention on performance contracting aspects and their effect on strategy implementation. This study sought to examine the effect of performance contracting aspects (performance agreement, performance evaluation and performance recognition) singly and jointly on strategy implementation in public corporations in Kenya

Objectives

Methods

Results

Conclusion