Role of Performance Planning On Strategy Implementation in Commercial State Corporations in Kenya

The purpose of this study was to look at the role of performance contracting in strategy implementation in commercial state corporations in Kenya.Strategy development and execution is key in enhancing organizational competitiveness.Among the strategy implementation tools, performance contracting plays a key role in engaging organizational staff.Problems in performance contracting and strategy implementation in state corporations led the researcher to formulating a research problem which guided the research process.The results will be used to solve strategy implementation problems thus improving performance.The general objective of this study was to analyse the role of performance contracting in strategy implementation in commercial state corporations in Kenya.The study used descriptive research design.The strategy implementation (dependent) variable was measured by Resource allocation and deployment; and the Performance Contracting (Independent) variables include Performance Target Setting, Performance Planning, and Performance Monitoring and Reporting.The study was based on the Resource Based theory and the Goal Setting theory.The target population for this study was the 32 Commercial State Corporations in Kenya as listed in the State Corporations Advisory Committee (SCAC) website (2016).Primary data was collected using structured questionnaires.The data was analyzed using descriptive statistics; correlation and regression analysis was computed to determine the degree of association between performance contracting and strategy implementation.The study established that Performance planning have a significant influence on strategy implementation.The study contribute significantly to new knowledge, in policy formulation, effective implementation of the Kenya Vision 2030, effective implementation of strategy using performance contracting, enhanced service delivery by the state corporations, and general performance of State Corporations in fulfillment of their mandates.