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

TANUI ARON KIPKEMOI, MORONGE MAKORI

Abstract


The study sought to establish the influence of contract management practices on operational performance of state corporations in Kenya. The study adopted descriptive research design to establish influence of contract management practices on operational performance of state corporations in Kenya. The target population comprised of head of departments in state corporations in Kenya which totals to 162. This study was a census survey of all 162 state corporations in Kenya.  Primary data was collected using questionnaires as the main data collection instruments. Piloting of the questionnaire was done using employees in state corporations who were not included in the final study. Mixed methods data analysis techniques were employed in this study incorporating both descriptive and inferential data analysis. Descriptive statistics which included means, SD, percentages and frequencies were applied in analysing quantitative data and the findings displayed in tables and figures. Qualitative information was tested using content analysis. The study conducted a correlation analysis to establish the strength of the relationship between the independent and the dependent variable. Multiple regressions were done establish the influence of contract management practices on operational performance of state corporations in Kenya. The study also found that the relationship between contract panning and operational performance was significance. The study found that contract administration has a positive effect on operational performance. The study found that contract evaluation has a positive effect on operational performance. The study also found that dispute resolution has positive effect on operational performance. There is need for state corporations in Kenya to have proper contract plans that are in line with the organization objectives. The procurement staff at state corporations in Kenya should ensure that they do proper contract administration by allocating all the necessary resources to a contract to avoid cost overruns. There is need for regular contract evaluation through monitoring and evaluation of contract performance. The study also recommends management of state corporations in Kenya to incorporate disputes resolution mechanisms such as negotiations and arbitration in every contract.

Keyword: Contract Administration, Contract Closure, Contract Management, Operational Performance.


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