Management control system, training model and institutional performance of technical training institutions in Kenya

Abstract

Training models are structures and methods that are applied as tools for enhancing institutional performance in Technical Training Institutions (TTIs). Management Control System (MCS) and Firm Performance have received substantial conceptual and empirical attention mainly in for-profit organisations. In countries such as Singapore and Malaysia, substantial growth in the economy has been realised mainly as a result of establishing a competent workforce. Despite the importance of a Training Model as an instrument of Institution Performance in Technical Training Institutions (TTIs), it does not yield anticipated results of providing competent graduates in Kenya. The purpose of this study therefore was to investigate the moderating effect of Management Control Systems (MCS) on the Training Model and Institutional Performance in Technical Training Institutions. The specific objectives were to establish the effect of Institutional Leadership, Organisation Processes and Human Resources Management on Institutional Performance. Further, the moderating effect of MCS in the relationships above was established. The study was anchored on the Institutional Theory and positivism research philosophy. Explanatory research design was adopted for this study. A questionnaire was used to collect data from a sample of 194 heads of academic departments from 59 TTIs by employing stratified random sampling. Hierarchical multiple regression was carried out to test the hypotheses and the study revealed that: Institutional Leadership (β=0.367, P<0.05), Organisation Processes (β=0.194, P<0.05) and Human Resources Management (β=0.268, P<0.05) significantly affect Institutional Performance. Additionally, Management Control System (MCS) was found to moderate on institutional leadership (β=0.147, P<0.05), Organisation Processes (β=0.119, P<0.05) but not on Human Resource Management (β=0.047, P=0.490) and Institutional Performance. Further, the moderator variable enhanced the predictive power of the model as indicated by the significant change of 0.103 in R 2 with an F-statistic of 35.396. Thus it can be observed that introducing MCS as a moderator enhances the three components of the Training Model. The study therefore recommends that TTIs should adopt MCS as a strategic tool to enhance the Training Model which will result in superior performance due to the introduction of the evaluation and feedback component. This will contribute immensely to the quality of trainees graduating from TTIs which should have a considerable impact to the industry and the economy in general. The study further contributes additional literature to the scanty empirical evidence on moderating effect of MCS on the relationship between the Training Model and Institutional Performance. The study findings are also expected to improve the ability of the government in policy formulation and decision making, controlling, signaling for TTIs.