Research on Education
Journal of Microbiology Research
Prime Journal of Business Administration and
5, Issue 11, pp.
© Prime Journals
Does performance contracting
matter? The moderating influence of performance contracting on
the relationship between strategy implementation and performance
of Kenya State Corporations
GP (D.Sc. Ph.D), 3Ongeti W. J., (PhD), 4Kinuu
candidate at the School of Business, University of Nairobi,
in School of Mathematics, University of Nairobi, Kenya.
in Strategic Management, Pan African Christian University
scholar and a managerial practitioner in the Telecommunications
Njoroge JK, Pokhariyal GP, Ongeti WJ, Kinuu D (2015).
Does performance contracting matter? The moderating influence of performance
contracting on the relationship between strategy implementation and performance
of Kenya State Corporations. Prim. J. Bus.
Admin. Manage. 5(11):
Strategy implementation has
been established to influence organizational performance. However, its influence
on organizational performance could be subject to a number of other variables
including performance contracting. The mutually agreed contracts through
negotiations between principals and agents are conventionally used with the
purpose of enhancing implementation of strategy. This study therefore sought to
investigate the effects of performance contracting on the relationship between
strategy implementation and performance of Kenyan state corporations. The
results showed that performance contracting significantly moderated the
relationship between strategy implementation and performance. Markedly, this
moderating effect was negative which was conspicuously unconventional. It is
most likely, from the findings, that there exists a disconnect between
performance contracting and strategy implementation in Kenyan state
corporations. The study further observed that although performance contracting
was established to operationalize strategy implementation, it seems the process
has acquired a trajectory of itís on. The study recommends a relook at the
process to ensure a linkage between performance contracting and strategy
implementation to ensure better performance of Kenyan state corporations.
Key words: Performance contracting; strategy implementation; state
corporations; organizational performance.
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