Management Control System, Institutional Leadership and Institutional Performance of Technical Training Institutions in Kenya

The purpose of this study was to determine the Moderating Effect of Management Control System (MCS) in the relationship between Institutional Leadership and Institutional Performance of Technical Training Institutions (TTIs) in Kenya. Technical Training Institutions (TTIs) that display high performance levels have an institutional leadership framework for long-term development of quality management. Further, although institutional leadership is important to TTIs, Management Control System (MCS) is key as it determines the success or failure of the institutions. There is little research that has been done to determine if Management Control System (MCS) moderates the relationship between institutional leadership and institutional performance of technical training institutions (TTIs) in Kenya. The study was cross-sectional survey in nature and used explanatory research design with the population being the TTIs that were registered with the Ministry of Education, Science and Technology (MOEST) and Technical and Vocational Education and Training Authority (TVETA) by 2015. The main research instrument was a closed ended questionnaire. The hypotheses in this study were tested using Hierarchical Moderated Multiple Regression (MMR) and the study found that institutional leadership had a significant positive influence on institutional performance of TTIs in Kenya. The study findings indicated that the estimated coefficient was 0.375 with a p-value less than 0.05 indicating that institutional leadership had a significant influence on performance. Further, the study found evidence that MCS moderates the relationship between institutional leadership and institutional performance. The coefficient of the interaction variable 1 X1 * Z was found to be 0.145 with a p-value less 0.05 and was significant. The change in R-square due to the moderating effect was found to be 0.039 with a significant F-change of p-value 0.000. This implied that MCS had a moderating effect on the relationship between institutional leadership and institutional performance of technical training institutions (TTIs) in Kenya. Institutional theory was used to anchor this study since it provides authoritative guidelines for social behaviour in TTIs through schemes, rules, norms and routines. This study is important to institutions because it will guide the managers of institutions on need to have good policies, have a suitable leadership style and an acceptable social culture.