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.