INFLUENCE OF CONTRACT MANAGEMENT PRACTICES ON PERFORMANCE OF STATE CORPORATIONS IN KENYA

Abstract

Purpose: The study helped unearth the influence of contract management practices on performance of state corporations in Kenya.Methodology: This study employed descriptive research design. The study reviewed both theoretical and empirical literature and then proposed the research methodology that addressed the gaps identified in literature as well as to validate the statistical hypotheses. The study preferred this method because it allows an in-depth study of the subject. The target population was all the 187 state corporations in Kenya. Questionnaires were administered to collect qualitative and quantitative data from a sample of 127 heads of procurement, who were selected using simple random sampling, from the four strata. After data collection, quantitative data was coded using Statistical Package for Social Science (SPSS) version 20.0. Data was analyzed through descriptive statistical methods such as means, standard deviation, frequencies and percentage. Inferential analyses was used in relation to correlation analysis and regression analysis to test the relationship between the four explanatory variables and the explained variable.Results: The response rate of the study was 82%. The findings of the study indicated that administration strategy, monitoring and evaluation, stakeholder management and conflict management have a positive relationship with performance of state corporations in Kenya.Conclusion: Based on the study findings, the study concludes that performance of state corporations can be improved by administration strategy, monitoring and evaluation, stakeholder management and conflict management. First, in regard to administration strategy, the regression coefficients of the study show that it has a significant influence on performance of state corporations.Policy recommendation: the study recommended that public institutions should embrace contract management practices so as to improve performance and further researches should to be carried out in other public institutions to find out if the same results can be obtained.