Performance Contracts and Intrapreneurial Development in State Corporations: The Case of National Housing Corporation (NHC) Kenya
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Date
2009
Authors
Mwaura, Jackson Muiruri
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Preparation and .implernentation of Performance Contracts has been one of the economic
and social changes introduced by the Government of Kenya with an aim of improving
efficiency and effectiveness in management of the public sector. Intrapreneurship on the
other hand has been defined as a culture of innovation, risk taking, moving away from
"business as usual" mode of working and a spirit of recognizing opportunities. This study
examined how performance contracts had influenced intrapreneurial development in
National Housing Corporation (NHC). Overall the study established the effects of
performance contracts, as a tool of management, on intrapreneurial practices in NHC.
A descriptive study on the subject of performance contracts and intrapreneurial
development in' NHC was undertaken to collect primary data. The research site for this
study was NHC House, headquarter offices of NHC. The target population was the 357
members of staff and nine Directors of this Corporation on whom a purposive sampling
was conducted to pick only those who had a direct involvement in the process of preparing
and implementing performance contracts in the Corporation. Questionnaires were
administered on the sampled 42 employees while an interview schedule was used to
collect data from two Board Members. Through a pilot study, the researcher tested the
validity and reliability of the survey instruments before they were administered. To collect
secondary data, the researcher reviewed literature relevant to performance contracts,
entrepreneurship, intrapreneurship, and NHC. The purpose of the literature review was for
the researcher to sharpen and deepen the theoretical foundation of the study area.
The data collected was ana lysed using the Statistical Package for Social Sciences (SPSS)
to generate measures of central tendency for the sample population. The results of data
analysis was presented in frequency distribution tables and also converted into graphs.
Analysis and presentation of data was done around the five specific objectives of this
research and on the characteristics of the sample
The study concluded that performance contracts can be implemented in a corporation
where intrapreneurial development is also encouraged. The two are not only compatible
but complementary. It was further concluded that management autonomy in a corporation
is a necessary condition for both intrapreneurial development and efficient implementation
of performance contracts. This study identified a need for further research on the two
variables of intrapreneurship and performance contracts in state corporations. The
research should aim at bringing out the apparent correlation in these variables so as to
recommend areas of possible support to ensure enhanced productivity.
The results of this study will fill the information gap on intrapreneurial practices in state
corporations particularly after introduction of performance contracts and the resultant
effects on productivity. The research report will be a valuable reference in the ongoing
public sector reform process.
Description
A Research Project Submitted to the School of Business in Partial Fulfillment of the Requirements of the Degree of Master of Business Administration of Kenyatta University, October 2009