An analysis of the effect of performance contracting on supply chain performance of public universities in Kenya

Abstract

Kenya Government has been implementing performance contracting in the public sector agencies with an overall goal of improve service delivery to the public. This is a performance improvement tool that assists in setting SMART objectives, clear targets, specifying agent performance in terms of results (outputs) and assigning accountability to those results, increasing the transparency of the accountability relationship in public institutions, establishing clear reporting, monitoring and evaluation mechanisms of the projects and providing for assessment of performance. Public universities in Kenya have embraced performance contracting as they implement their operational mandates in responding to public expectations. One of the key operational areas is supply chain management targeting to satisfy material and information requirements of users. This study sought to find the effect of performance on the supply chain performance of the public universities in Kenya. The study adopted a correlation design on a sample of 55 out of a population of 84 supply chain professionals in the selected public universities. Structured questionnaire was used to collect primary data upon which a regression analysis was the conducted. The results indicated that there is an average positive relationship of 58.6%(R=. 586) between performance contracting and supply chain performance of public universities in Kenya. It is clear that 34.3% of supply chain performance of public university accounted for by performance contracting (R2= 0.343). Furthermore, it indicated that F= 10.977 with p-value< 0.05 which was significant. The study concluded that performance …