Strategic Management Practices and Service Delivery. The Example of Kakamega County, Kenya

TABLE OF CONTENTS

DEDICATION

ACKNOWLEDGEMENTS

ABSTRACT

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES

ABBREVIATIONS AND ACRONYMS

OPERATIONAL DEFINITION OF TERMS

CHAPTER ONE
INTRODUCTION
1.0 Introduction
1.1. Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.3.1 General Objective
1.3.2 Specific Objectives
1.5 Significance of the Study
1.6 Scope of the Study
1.7 Limitations of the Study
1.8 Conceptual Framework

LITERATURE REVIEW
2.0 Introduction
2.1 Theoretical Review
2.1.1 Knowledge-Based Theory
2.1.2 Institutional Theory
2.2 The Concept of Strategic Management
2.3 The Concept of Service Delivery
2.4 Empirical Review of Literature
2.4.1 Effect of Supplier Management Practises on Service Delivery
2.4.2 Effect of Human Resources Management Practices on Service Delivery
2.4.3 Effect of Technology Adoption on Service Delivery
2.4.4 Moderating Effect of Environmental Factors on the Relationship between Strategic Management Practices and Service Delivery
2.5 Knowledge Gap
2.6 Summary of Literature Review

CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
3.1 Research Design
3.2 Area of the Study
3.3 Target Population
3.4 Sampling Procedure and Sample Size
3.5 Instruments of Data Collection
3.6 Piloting
3.6.1 Validity of the Research Instruments
3.6.2 Reliability of the Research Instruments
3.7 Data Collection Procedures
3.2.1 Response Rate
Table 3.7.1 Response rate
3.8 Data Analysis and Presentation
3.9 Ethical Considerations

CHAPTER FOUR
RESULTS PRESENTATION, ANALYSIS AND DISCUSSION
4.1. Introduction
4.2. Descriptive Statistics
4.2.1 Background Information
4.3 Inferential Statistical Analysis
4.3.1 Correlation Analysis
4.3.1.1 Relationship between Suppliers Relations Management and Service Delivery
4.3.1.2 Relationship between Human Resource Management and Service Delivery
4.3.1.3 Relationship between Technology Adoption and Service Delivery
4.3.1.4 Moderating Effects of Environmental Factors on the Relationship between Strategic Management Practices and Service Delivery
4.3.2 Regression Analysis
4.3.2.1 Regression results of Supplier Relations Management and Service Delivery
4.3.2.2 Regression analysis of Human Resource Management Practices and Service Delivery
4.3.2.3 Regression Analysis of Technology Adoption and Service Delivery
4.3.2.4 Regression analysis of the Strategic Management Practices and Service Delivery

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
5.2 Summary of Findings
5.2.1 Research objective one
5.2.2 Research objective two
5.2.3 Research objective three
5.2.4 Research objective four
5.3 Conclusion
5.4 Recommendations
5.5 Suggestions for Further Studies

References

APPENDICES
Appendix I: Study area map
Appendix IV: Letter of introduction
Appendix V: County Respondents Questionnaires

LIST OF TABLES

Table 3.1 Sampling Frame

Table 3.7.1 Response rate

Table 4.1 Respondents gender

Table 4.2 Respondents age

Table 4.3 Respondents education

Table 4.4 Years worked in the county

Table 4.5 Work Section in the county

Table 4.6 Minimum, maximum, mean and standard deviation of suppler relations management practices

Table 4.7 Minimum, maximum, mean and standard deviation of human resource management practices

Table 4.8 Minimum, maximum, mean and standard deviation of technology adoption

Table 4.9 Minimum, maximum, mean and standard deviation of moderating effects of environmental factors on strategic management practices and service delivery

Table 4.10 Relationship between suppliers’ relationship and service delivery

Table 4.11 Relationship between human resource management and service delivery

Table 4.12 Relationship between technology adoption and service delivery

Table 4.13 Correlation with environmental factors

Table 4.14 Regression results of supplier relations management and service delivery

Table 4.15 Regression results of human resource management practices and service delivery

Table 4.16 Regression results of technology adoption and service delivery

Table 4.17 Regression results of strategic management practices and service delivery

Table 4.18 Regression results with environmental factors

LIST OF FIGURES

Figure 2.1 Conceptual Framework

ABBREVIATIONS AND ACRONYMS

ATM Automated Teller Machine

HR Human resources

HRM Human Resource Management

ICT Information and Communication Technology

LGA Local Government Authorities

PPAB Public Procurement Advisory Board

PPARB Public Procurement Administrative Review Board

PPOA Public Procurement Oversight Authority

SCM Supply Chain Management

SRM Supplier Relationship Management

OPERATIONAL DEFINITION OF TERMS

Customer Satisfaction- is a term that refers to a measure of how products and services supplied by a company meet or surpass customerexpectation. In service delivery, the system of delivery must view tax payers as customers; this therefore calls for placing a high priority on delivery of personalized efficient customer service. The attitudes exhibited by service providers, employees and managers must be aimed at developing good working relations and ensuring that tax payers/citizens are handled well while being served.

- Effectiveness- Refer to the extent to which something is successful in producing desired results. In the research, it focuses on the effectiveness of the service delivery and re–examines its influence on customers' perceived service quality. In this study, the influence of four specific indicators of the service delivery effectiveness are covered namely front line employees' role performance, their adaptability to individual customer needs, the effectiveness of their coordination and the effectiveness of the service process' control on perceived service quality is tested

Efficiency- Refers to the ratio of the useful work performed by a machine or in a process to the total energy expended or heat taken in. In the research, efficiency is used in achieving a desired service,or trying to offer the right service to customers emphasizing on the selection of objectives of production process to be as important as the quality of the process.

Environmental Factors- Known characteristics in environment that impact the survival, operations, and growth of an organization, this research identified and quantified factors that affect service delivery by local government counsellors. In this case, laws and politics were identified to impact service delivery negatively

Human Resource (HR) is the available talents and energies of people who are available to an organization as the potential contributors to the creation and the realization of the organization’s mission, vision, strategy and goals. The practices performed by this department have a critical influence on the overall service delivery of the organization. The research showed that although sufficient resources were provided by the county governments for service delivery, the resources allocated were not effectively utilized due to lack of skills, poor spending capacity and lack of transparency and accountability.

Law- the system of rules which a particular country or community recognizes as regulating the actions of its members and which it may enforce by the imposition of penalties. In this research, the rules and regulations put in place by the county government have to be followed in offering services to the citizens.

Politics- in the research, political patronage manifects itself in public appointments; judicial, legal and policy framework, politics of ethnicity and tribal balancing; corruption and impunity in public service and economic influences of corruption.

Service delivery - Deliberate obligatory decision by the elected or appointed officials in county offices to serve or deliver goods and services to the constituents. In the research, tax payers have been viewed as the customers therefore need to place a high priority on delivery of personalised efficient customer service.

Strategic management practices - It encompasses supplier management practices, human resources management practices and technology adoption. In the research, strategic management has been touted as one of the effective management tools in strengthening organisational performance through effective decision making and systematic strategic formulation and implementation.

Supplier relationship - Where two or more chain members work together to create a competitive advantage through sharing information, making joint decisions and sharing benefits resulting in greater profitability of satisfying customer needs than acting alone. In the research, Supplier relations management aids in understanding the suppliers' technical knowledge, commitment to provide quality goods and services, and the capability to beat deadlines, compared to qualitative aspects such as suppliers' willingness to uncover classified data.

Technology Adoption - is where new technologies enhanced accuracy and precision in execution of operations and bringing in place significant positive correlation between automation and efficiency in task execution. In the research the use of technology to enable delivery of services has the potential to benefit both the service providers and the citizens who are the customers. While at the same time the manner in which technology is put, and the manner in which it is used, also has the potential to disenfranchise customers.

CHAPTER ONE

INTRODUCTION

1.0 Introduction

This chapter covers the background to the study, problem statement, purpose of the study, objectives of the study, research questions, significance of the study, scope of the study, limitations of the study, and definition of terms.

1.1. Background of the Study

In the contemporary world, organisations, both public and private, experience unprecedented paces of change. Consequently, they continually re-evaluate their operating models and other strategies to withstand those changes and benefit from them for sustained performance. McInerney and Barrows (2000) stated that new approaches to the public sector management were imperative as the governments entered the new millennium. The authors noted that the market dynamics were creating challenges for public entities, with the advancement in technology, the emergence of the global economy, increased societal demands, and the need to offer more social services with fewer resources. In addition, there was a widespread desire to have increased organizational scrutiny, which increased the pressure for change, owing to the availability of more accessible globalised information systems, as well as the heightened media attention critical of the inefficiencies of governments in service delivery. Within the private market structures, new response mechanisms to the above issues emerged; public organizations have been slower to respond due to the bureaucratic process axiomatic to governments and the fiscal constraints (McInerney & Barrows, 2000). However, a new approach that brings on board modern strategic management techniques would be necessary for the government to attain improved performance and the overall service quality. According to Smith (as cited in Gideon and Georgina, 2016), even though the strategic management was primarily used in the private sector, there has been a growing interest of using it in the public sector since 1980s. Strategic management has been regarded as one of the effective management tools in strengthening the performance of an entity through effective decision making, systematic strategic formulation and implementation (Juma & Okibo, 2016). McInerney and Barrows (2000) posited that the principles guiding any strategic management process, may it be in the private or public sector involve understanding the required changes, how to implement and manage them, and how to develop a roadmap for sustaining improvements that result in better performance. Strategic management has been touted to be an effective management tool in changing a bureaucratic public sector to a more responsive, as well as an innovative administration (Gideon & Georgina, 2016). However, there are difficulties in strategic management posed by the challenges of laying a foundation for success in the future while meeting the current hurdles (McInerney & Barrows, 2000).

Across the world, nations appreciate that they exist to offer quality public goods and services in the most convenient and affordable manner. As a result, majority of them have multilevel governance through decentralisation or devolution of resources, responsibilities, and powers from the central governments to the sub-national governments; also called county governments, regional governments or local governments based on the country (Ndunda, Ngahu, & Wanyoike, 2015). It is important to underscore that the devolution of power, authority and resources to county governments was intended to take developments and service delivery nearer to the citizenry by making governance more responsive to its demands. Also, it was intended to make governments more accountable to the local people.

The aspects of poverty, inequality and underdevelopment accentuate the need to address issues of social and economic development for effective delivery of services to people. According to Khalid (2010 as cited in Makanyeza, Kwandayi, & Ikobe, 2013), the Malaysian counties continued to encounter pressure to improve their service delivery. In South Africa, inadequacy of the government to operationalize fully ward communities has been the limiting factor to the delivery of the required services. In particular, Ward committees have been the focus of considerable attention by the government and civil society, with substantial investment already made in an attempt to ensure that these structures have the necessary capacity and resources required for them to fulfil their envisaged roles as the voices of communities. On the contrary, the effectiveness of these institutions as useful conduits for community involvement in local governance and create space for public participation is still questionable (Odaro, 2012). As such, it is not clear whether they are inherently capable to play the critical role expected of them and create opportunities for real power-sharing between municipalities and citizens or not. Uganda is not an exceptional case to this problem, given that service delivery has been affected by factors such as inability to attract and retain experienced personnel. Precisely, the efficiency and ability of the Ugandan government to offer health services was constrained by understaffing. Nannyonjo and Okot (2013) noted that despite the fact that the decentralisation in this nation begun in 1997, the local governments were still grappling with various challenges such as inadequate financial resources, lack of trained and experienced workforce, nepotism, and corruption among others, and which affected service delivery.

In Kenya, factors such as low employee capacitation, adoption of technology, poor communication channels and inadequate funds are among the main factors that affect delivery of quality health services in various sectors of the economy. Consequently, the Constitution of Kenya of 2010 brought many changes in the way public activities are performed. Among them was the development of many functions of the national government to the 47 county governments. Kakamega County is one of the 47 County governments established by the Constitution of Kenya of 2010. Makanyeza, Kwandayi and Ikobe (2013) stated that sound strategic human resource policies were crucial in the efficient and effective delivery of services in Kakamega County. Mugambi (2013) stated that service delivery was influenced by training, remuneration of workforce, promotional procedures, and culture of the systems among other factors. Accordingly, there is need to study the effect of strategic management practices on services delivery in Kakamega. Particularly, there is need to assess the effect of supplier management on service delivery, establish the effect of human resource practices on service delivery, determine the effect of technology adoption on service delivery and establish whether or not, environmental factors influence service delivery in Kakamega County.

1.2 Statement of the Problem

Devolution is premised on the rationale that institutions closest to citizens are the most likely to meet and properly articulate people’s needs. However, there are instances where decentralization of resources and power to the grassroots has not achieved the roles of service delivery as anticipated. In Kenya, Onyango and Ondiek (2015) noted that service delivery in Kakamega County was hampered by factors such as political patronage, corruption, lack of accountability and transparency, inadequate citizen participation, poor human resource policy, poor planning, failure to manage change, and poor monitoring and evaluation. Accordingly, the public has lost confidence in the county government’s’ ability to utilise public funds in a manner that would address their service needs. However, not many researchers have made efforts to uncover the effects of strategic management practices adopted by Kakamega County in delivering quality services, an aspect that makes this study feasible in filling this knowledge gap.

1.3 Objectives of the Study

This section presented the general and specific objectives of the study.

1.3.1 General Objective

The general objective of the study was to assess the effects of strategic management practices on services delivery in Kakamega County.

1.3.2 Specific Objectives

The specific objectives were to:

i. Determine the effect of supplier management on service delivery in Kakamega County
ii. Establish the effect of human resource practices on service delivery in Kakamega County
iii. Determine the effect of technology adoption on service delivery in Kakamega County
iv. Establish the moderating effect of environmental Factors on the relationship between strategic management practices and service delivery

1.4 Research Hypothesis

H01: Supplier management had no effect on service delivery in Kakamega County

H02: Human resource practices had no effect on service delivery in Kakamega County

H03: Technology adoption did not affect service delivery in Kakamega County

H04: Environmental factors did not affect service delivery in Kakamega County

1.5 Significance of the Study

It was hoped that the study would be useful to various stakeholders involved or affected by services delivery in county governments. First, it would facilitate establishing, adopting and following the right strategic management practices in a manner that quality services delivery to citizens would be enhanced and the value for money ensured. Also, the findings of the study would be useful to the general public in understanding their crucial roles through participation and civilian oversight. The current Constitution empowers citizens to participate in all matters pertaining to them, and could benefit from the study by understanding the importance of their public hearing meetings where they engage and discuss with the authority and experts about the intended practices and beneficiaries. Besides, since the aim of devolution is to bring services closer to the citizenry, the policy makers would benefit from the study by developing measures that county governments should to maximally meet public needs. Finally, the study may be useful to researchers and academicians as it would immensely contribute towards the existing literature on the contributions of strategic management practices on quality service delivery.

1.6 Scope of the Study

The study was performed in Kakamega County, located in the former Western Province. The focus was on the effect of strategic management practices on service delivery. The study was conducted from May to June, 2016, considering service delivery for the 2015 to 2016 fiscal year. Data was collected using various techniques and later analysed for the purposes of drawing conclusions.

1.7 Limitations of the Study

The limitations in the study were related to the generalization of findings to other counties. However, the researcher performed extensive studies before making inferences. Also, the respondents would fail to fill in the questionnaires as required. As such, a pilot study was performed on 10 participants not included in the final analysis to ensure that respondents comprehended the prompts appropriately. Also, there was the likelihood of the respondents not to be objective in their responses. Thus, the researcher had to emphasise on the importance of providing accurate and relevant responses, citing some of the benefits associated with the study.

1.8 Conceptual Framework

Figure 1.1 shows the conceptual frame work, which captured the major variables and their interrelationships. The independent variables studied were strategic management practices such as supplier relations management, human resource practices and technology adoption. Service delivery was the independent variable, whereas law and politics were the considerable moderating variables.

Independent Variable Dependent Variable

Abbildung in dieser Leseprobe nicht enthalten

Figure 2.1 Conceptual Framework

Source: Researcher self conceptualisation, 2017

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter presents the literature related to strategic management practices and delivery of services. It covered the theoretical review, the concept of strategic management practices, concept of service delivery, and empirical review of literature.

2.1 Theoretical Review

This section presents theoretical review, in which two theories, namely knowledge-based and institutional theories were discussed.

2.1.1 Knowledge-Based Theory

The rationale for this principle is that it regards knowledge as the strategically vital resource of an entity. Supporters of this theory contend that knowledge bases are socially complex and not easy to mimic. Typically, they are contributing elements of unrelenting competitive advantage and outstanding performance in the corporate world. According to this premise, the head of a department is liable for the acquisition and retaining of valuable expertise (Carla, 2006). According to the assertion’s proponents, the capability to reproduce knowledge ascertain an entity’s development rate. As established by Carla (2006), organizations can expand and avert competitive imitation only by recombining their knowledge endlessly and capitalizing it on new market openings. Knowledge-Based Theory has three fundamental features that affect a firm’s strategic value. They include; integration efficiency, the scope of integration, and flexibility of integration. In this regard, there is a significant need to explore how new knowledge is formatted with existing expertise. Also, it is essential to evaluate how change implementation knowledge bases influence service delivery in Kakamega County.

2.1.2 Institutional Theory

Scott (2008) posited that institutions are composed of cultural-cognitive and regulative elements that, together with associated activities and resources give meaning to life. He further explains the three pillars of institutions as regulatory, normative and cultural cognitive. The regulatory pillar emphasizes the use of rules, laws and sanctions as an enforcement mechanism, with expedience as the basis for compliance. The normative pillar refers to norms (how things should be done) and values (preferred or desirable), social obligation being the basis of compliance. The cultural-cognitive pillar rests on shared understanding (common beliefs, symbols, shared understanding). This theory is very important when it comes to the implementation of strategic management practices in organizations that serve the public. This is a matter of organizational culture and the degree to which the prevailing climate in an organization is supportive of sustainability and/or of change in general. In other respects, this dimension includes the extent to which there is support for strategic management practices at senior levels in an organization and the degree to which organizational processes and structures support, or retard, the development of strategic management practices (Davis, 2014).

2.2 The Concept of Strategic Management

Quoting Hamrick and Fredrickson (2001), Gnyawali and Shrestha (2008) noted that strategy is a series of decisions, commitments, and undertakings by an entity to improve its competitiveness and demonstrate superior performance by executing different activities and/or doing the same things in a different manner from the competitors. Ofunya (2013) stated that strategies are the means by which long-term objectives would be achieved. The process of strategic management involves the following key aspects: analysis of the external and internal environment; formulation of long term strategic direction which include the vision, mission, objectives, and strategies; strategies implementation; continuous performance monitoring; and taking corrective actions based on the performance outcomes and environmental changes (Gnyawali & Shrestha, 2008). Zaei, Yarahmadzehi and Abtin (2013) noted that strategic management can be viewed as a series of steps covering the tasks of analysing the opportunities and threats that exist in the external environment; analysing the organization's strengths and weaknesses within the internal environment; identifying agency stakeholders; establishing organization's mission and goals; formulating strategies by matching the organization's strengths and weaknesses with the environment's opportunities and threats; implementing the strategies; and finally engaging in strategy control activities to measure the implementation progress and ensure achievement of the stated goals.

Strategic management has been touted as one of the effective management tools in strengthening organizational performance through effective decision making and systematic strategic formulation and implementation (Zaei, Yarahmadzehi, & Abtin, 2013). The use of strategic management enables firms define their strategies which provide a central purpose and direction to its activities to people who work in the firm and often to the outside world (Ofunya, 2013). Zaei, Yarahmadzehi and Abtin (2013) asserted that the importance of strategic planning and management practice as an effective tool in strengthening the performance in the states and local governments has become a subject of interest in many developed countries since the last fifteen years.

2.3 The Concept of Service Delivery

Davis (2014) noted that in as far as the Local Government Act, the constitution or/and any other legislations that are studied, the phrase service delivery has not been defined either deliberately or ignorantly. However, the author stated that service can be viewed as a system or arrangement that supplies public needs while delivery is the periodical performance of a service. Therefore, service delivery is a system or arrangement of periodical performance of supplying public needs (Davis, 2014). According to Helmsing (1995) as contained in (Hussein & Wanyoike, 2015)’s study, service delivery to people is the deliberate obligatory decision by the elected or appointed officials to serve or deliver goods and services to the recipients.

In service delivery, the system of delivery must view tax payers as customers; this therefore calls for placing a high priority on delivery of personalized efficient customer service. The attitudes exhibited by service providers, employees and managers must be aimed at developing good working relations and ensuring that tax payers/citizens are handled well while being served. Service provision or delivery is an immediate output of the inputs into the health sector, education sector among other sectors. Increased inputs should lead to improved service delivery and enhanced access to services.

2.4 Empirical Review of Literature

This section presented empirical review using existing evidence to illustrate the effect of supplier management practices on service delivery, effect of human resources management practices on service delivery, the impact of technology adoption on service delivery and the effect of environmental factors on service delivery.

2.4.1 Effect of Supplier Management Practises on Service Delivery

Few studies have been done to assess the effect of supplier management practices on service delivery in the public sector. From the available empirical researches, comprehensive efforts have been made to develop decision methods and techniques for various supplier management practices. A research on the significance of supplier selection and evaluation criteria in the U.S illustrated that soft, non-quantifiable selection criteria, such as a supplier's strategic commitment, had a positive influence on the performance quantifiable criteria such as supplier capability, yet are never considered valuable (Edwards & Scholtz, 2012). Also, the study revealed that evaluating a supplier's willingness and ability to share information impacted the buyer significantly, yet this aspect also bears less importance.

An analysis on Kenya’s public procurement sector established the performance of public procurement to be 66% when using the BLI sub indicators (Chemjor, 2015). As such, Kenya’s regulatory and administrative framework was stable, compared to other aspects such as transparency, integrity, management capacity, institutional framework, market practices and supply management functions. However, as much the score was above the threshold of 1.5 out of 3, there is still much room for improvement to facilitate the realization of effective service delivery.

A research on supplier management practices, particularly, the selection criteria and performance of manufacturing firms listed in the Nairobi Stock Exchange established that a positive correlation between effective supplier selection and organization performance (Namu, 2016). From the study findings, entities considered quantitative factors such as suppliers' technical knowledge, commitment to provide quality goods and services, and the capability to beat deadlines, compared to qualitative aspects such as suppliers' willingness to uncover classified data. Factors such as the cost to retain the required expertise, technical capability, quality assessment, service levels, and corruption have been uncovered as the primary inhabitants of effective implementation of supply management practices to facilitate productive service delivery (Mutai & Okello, 2016).

In a study conducted by Masiko (2013), supplier management practices enhanced performance of procurement in Commercial Banks. The highlighted practices included; definition of clear organization objectives and setting quantifiable goals, developing feasible strategies and tactics, and establishing a proper supplier relationship management plan. Besides, procurement is turning out as one of the crucial and strategic functions of every organization with the possibility to make significant contribution to the success of operations, which transform to effective service delivery. In this context, strategic management sets in motion the overall acquisition process of commercial banks.

Based on Barsemoi, Mwangagi and Asienyo (2014) study, the various aspects that facilitate the best strategic management practices in the Kenya’s economic sector include employee expertise, a transparent organizational structure that promote open decision making, and appropriate management systems. In Kakamega County, these variables have not been implemented fully. For instance, employing and retaining the required expertise is hampered by finances, nepotism and the fear of replacing the existing personnel, especially if they have lower academic qualifications. In the same respect, transparency is hindered by corrupt leadership, whereby, the departmental heads do not want to come out willingly and involve the rest of the members in the decision-making process, primarily to protect their individual interests. Accordingly, re-evaluation of such practices is essential for the implementation of effective ones.

2.4.2 Effect of Human Resources Management Practices on Service Delivery

Human Resource is considered an essential asset of any enterprise. The various practices performed by this department have a critical influence on the overall service delivery of the organization. From the available empirical evidence, Decenzo, 2010 (as cited by Busungu, 2015) argued that human resource is responsible for the recruitment, training, orienting, reshaping new employees into 100% fully performing workforce. In their research regarding a results-oriented public service, Lenkeu & Maket (2012) examined various revolutionary changes meant to change the civil service towards delivering the desired results in due time. From their findings, employee development enhances service delivery. As such, they emphasized the need to train, develop and expose workers to various career advancement opportunities. The same results were established by Mugo (2015), having evaluated the moderating role of employees’ cultural orientations amongst foreign manufacturing multinational companies in Kenya. According to this study findings, training and development has a significant influence on productivity. Another research on the various factors influencing the performance of the hospitality sector in Kenya by Ongori, Iravo, & Munene (2013), in which a sample of over hundred respondents was used established some gaps in employee expertise and customer satisfaction. Particularly, entities with well trained workers realized higher levels of customer satisfaction compared to those who did not put emphasis on training its personnel. Accordingly, strategic management of these businesses recommended training and development as an important HRM skill that must be implemented for the realization of higher productivity.

Rewarding employee was identified as motivating factor most human resource managers apply to boost employee morale for higher productivity. A research was performed by Ali & Ahmed (2009) on the “impact of reward and recognition programs on employee motivation and satisfaction”. In this study, an exploratory research design was used. The sample size was 80 participants selected randomly fro of Unilever companies, before they could be administered with questionnaires. The research findings indicated a positive relationship between rewards, employee satisfaction and motivation. Among the variables identified to influence satisfaction; salaries led by 86%, promotion followed by 74%, working conditions came at the third position with 61%, while personal attitude was fourth with 37%. However, the authors recommended more research to be carried out on the influence that reward and recognition poses on motivation and work satisfaction for diverse groups of people using parameters such as gender, race and disability (Ahmed & Ali, 2008).

Another study on the influence that bonuses have on business performance, Njanja, Maina, Kibet, & Njagi (2013) aimed at uncovering the degree to which rewards implemented by the Kenya Power & Lightning Company limited affected the performance of its workforce. The study employed a correlation research design on a sample size of 80 employees. Questionnaires were used to collect data before it could be presented using descriptive statistics. The researchers utilized the chi-square method to analyze the correlation between bonuses and performance. From the findings, bonuses had no significant impact on employee performance. Accordingly, the authors recommended that the firm’s management pay a close attention to modifying the inherent nature and description of jobs.

2.4.3 Effect of Technology Adoption on Service Delivery

Mahdi & Mehrdad (2010) applied a chi-square approach in the determination of the impact of e-banking in Iran. From the customers’ point of view, e-banking facilitate self-service, which save them time and hence, derive great satisfaction from using it. Agboola (2006) researched about the use of electronic payment systems and tele-banking services in Nigeria. According to the study findings, tele-banking has expanded customer relationship, retained their loyalty and helped banks to enhance their market share. Saeed & Bampton (2013) on his study about the Impact of Information and Communication Technology on the performance of Libyan banks established that the banking sector in Libya had not automated its operations fully, a fact that has contributed to poor performance within Libyan Commercial banking operations. Niwamanya (2012) researched on the efficiency of technology on the operations of commercial banks in Uganda. Rom the research findings, technology improved the management of customers’ queues and facilitated the extension of the working hours for the banks, translating to an increase profitability, and enhanced accuracy and precision in execution of operations. In particular, a significant positive correlation was evident between automation and efficiency in task execution, implying that the adoption of new technologies had streamlined service delivery.

Warui (2014) perfumed a research the adoption and integration of internet banking in Kenya. His primary goal was to determine the underlying factors that influence the adoption of internet banking on account holders of commercial banks in Nairobi County, Kenya. The author utilized commonly applied and empirically supported approaches of the adoption of information technology in a bid to realize his objective. In the research, technology acceptance model (TAM) was extended by risk and self-efficacy as the external factors. Also, the researcher employed model a reduced version of perceived traits of innovation (PCI) as a model, without the image and voluntariness constructs. The sample size was 300 individuals, selected randomly from Nairobi, Kenya. As per the study findings, the use of internet banking is still low in Kenya. In addition, the understanding of users in regard to the various aspects of internet banking are more positive than non-users’ perceptions, except for risk. Accordingly, it is essential to analyze why such innovations have not been implemented, given their accompanying benefits such as quick service, reduction of commotion in the banking halls, as well as cost reduction.

Oluoch, Abaja, Githeko, & Mwangi (2013) studied the factors influencing the adoption of mobile banking technology in Kenya. The main rationale was to establish how vital factors affect the adoption of M-banking technology in Kenya by extending the renowned framework of Technology Acceptance Model (TAM), a case of Nakuru Municipality. According to the research findings, PU and PEOU influence the adoption of Mobile banking positively. However, PR was found to have a negative effect on Mobile banking adoption. The findings reflected those of similar studies performed in other global nations such as South Africa and Malaysia, implying that mobile banking was essential to bank customers. Still, they were not sure of their accounts safety when transacting online, hence, an aspect that needs to be addressed by stakeholders in this sector.

Mwai (2013) carried out a research on the effect of the proliferation of electronic banking on the financial performance of commercial banks in Kenya. The major focus was to analyze how transactional convenience, efficiency and service accessibility brought about by e-banking influenced the annual turn-over of the banking sector. The author utilized a causal-comparative research design on a target population of the middle management staff from all commercial banks across the country. Semi-structured questionnaires were used as the main research instrument. Also, the author used secondary research materials such as annual financial statements. The collected data was analyzed using SPSS to draw descriptive statistics, particularly, frequencies, mean and standard deviation. The study made use of multiple linear regression analysis to illustrate the relationship between independent and dependent variables. Accordingly, there was a linear dependence between the financial performance of banks and electronic banking. Typically, service accessibility, transactional convenience and service efficiency brought about by e-banking technology enhanced service delivery. In that respect, the author drew inferences that e-banking had revolutionized the way transactions are performed from making deposits to withdrawing cash, as well as confirming balances. As such, the viability of e-banking technology was established in its virtual capabilities to serve customers without requiring them to be physically present in the banking hall, thus, saving on time and costs.

2.4.4 Moderating Effect of Environmental Factors on the Relationship between Strategic Management Practices and Service Delivery

The political climate in the country in general and specifically in counties impacts on the level of service delivery. Hussein and Wanyoike (2015) noted that the political patronage manifests itself in public appointments; judicial, legal and policy frameworks; politics of ethnicity and tribal balancing; corruption and impunity in public service; and economic influences of corruption.

Akech (2005) noted that political patronage works in governments, which tend to be unpopular with the citizenry to ensure that only their narrowly-drawn and often ethnic constituencies have access to public resources, such as lucrative public contracts and employment positions. According to Akech, public resources are therefore a means through which such governments purchase legitimacy to remain in power. For instance, the common corrupt practices in public procurement involve public officers, often under the influence of powerful politicians and businessmen, only inviting preferred firms, favouring certain firms at the short-listing stage, designing tender documents to favour particular firms and releasing confidential information.

HRM policies and practices are likely to have an impact on the quality of service as the use of coherent HR strategy will enable the selection, recruitment, training, development and reward of the most appropriate human resources (Mutiso, 2010). Ishii, Rohitarachoon and Hossain (2013) noted that the recruitment and selection practices were the main areas where the power of local bosses commonly interferes. The authors added that the local civil service was majorly selected on the basis of nepotism of local power holders, and which in turn adversely affect the delivery of services. Dzansi and Dzansi (2010) postulated that the organisational setting affects the effectiveness of the HRM. One such critical factor that affects the performance of South African municipalities is the political polarization. The authors added that the employees in the municipalities were hired based on political considerations as opposed to their competence.

The supplier relations management is also likely to be affected by the procurement laws such as the Public Procurement and Asset Disposal Act 2015 created the Public Procurement Oversight Authority (PPOA), the Public Procurement Advisory Board (PPAB) and the continuance of the Public Procurement Complaints, Review and Appeals Board as the Public Procurement Administrative Review Board (PPARB) (Kiplagat, 2010). The PPAB and PPARB are autonomous bodies who are mandated with diverse responsibilities in regulating and guiding procurement policy in the public sector. The PPOA is mandated with the responsibility of: ensuring that procurement procedures established under the Act are complied with; monitoring the procurement system and reporting on its overall functioning; Initiating public procurement policy; assisting in the implementation and operation of the public procurement system by: preparing and distributing manuals and standard tender documents, providing advice and assistance to procuring entities, and developing, promoting and supporting training and professional development of staff involved in procurement (Public Procurement Oversight Authority, 2009).

2.5 Knowledge Gap

Most of the previous studies done on the effect of strategic management practices on service delivery concentrated on establishing how supplier selection criteria influenced service delivery. However, they did not try to determine the effect that supplier relations pose on service delivery. Accordingly, the author established this area to be of interest, particularly in Kakamega County. In the same context, existing researches sought to determine the influence of employee recruitment and training, as well as reward on service delivery as the best human resource practices. These studies revealed a great degree of political patronage during hiring. As such, the author sought to establish whether the same case existed in Kakamega County, by determining whether or not, the human resource management acquired labor on merit. In regard to the aspect of technology adoption and how it affected service delivery, previous researches sought to establish the impact of automation, particularly, adoption of e-services on service delivery. The findings revealed that services improved through saving time and reducing queues. However, little was done on the effect of adopting state-of-the-art technologies such as cloud computing on service delivery. Accordingly, this part became a point of focus to the author, mainly, to determine whether such technologies exist in Kakamega County and how they influence service delivery.

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