Influence of Strategic Contract Management on Performance of Devolved Systems of Government in Kenya

Abstract

Many organizations have striven to cut down cost, in order to increase profits so as to gain competitive advantage this is realized through strategic procurement practices which helps an organization gain a competitive advantage through its contribution to the strategic goals of an organization and its ability to significantly increase performance and productivity. The purpose of this study was to investigate the influence of strategic contract management practice on performance of devolve system of government in Kenya, the study adopted cross-sectional survey design using both quantitative and qualitative approaches. The target population for this study were all employees working in finance and procurement departments in 10 counties namely; Garissa, Kisii, Nyamira, Narok, Marsabit, Murang’a, Bomet, Nairobi, Kiambu and Homa Bay .the study used stratified random sampling to pick 186 respondents from finance and procurement department. Data was collected by using questionnaires Descriptive and inferential statistics was used aided by Statistical Packages for Social Sciences version 24 to compute percentages of respondents’ answers.  Hypothesis testing was carried using multiple regression analysis and standard F tests. The study found out that there is a moderate positive correlation association between strategic contract management and performance of devolved systems of government. The study recommends that all devolved systems of government should have explicit standards and measures of performance between different stakeholders and themselves and further the devolved systems of government should ensure obligations and responsibilities are well defined under contract before formalizing and signing the contracts.

Keywords: strategic contract management, supply chain performance, devolved systems of government.

DOI: 10.7176/EJBM/12-21-12

Publication date:July 31^st 2020