Performance Contracting Aspects and Strategy Implementation in Public Corporations in Kenya

Stella G. Kabuga, Henry K. Kombo


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 31st 2021

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