The Effect of Iso Certification on the Financial Performance of Public Sector Institutions
Abstract
The Government of Kenya is expressing dissatisfaction with the performance of its
institutions especially financial performance, which would prevent it from achieving
any sustainable development despite having in place very effective policies. The poor
public financial performance is attributable to lack of adoption of ISO certification,
according to academic literature, studies and other journals. There is scanty
information linking ISO certification to public financial performance in Kenya, which
caused this study to be conducted with an objective of evaluating the effects of ISO
certification on financial performance of public sector institutions in Kenya. This
study used a descriptive survey in soliciting information in the area of research and its
target population was selected from 70 public sector institutions, which were
operational between 2008 and 2012. Data was collected from secondary sources and
analyzed using both descriptive and inferential statistics. This study revealed that the
ISO certification Status affects the financial performance of public sector institutions
positively. It was found that an increase in the period after ISO certification enhances
the financial performance of public sector institutions and vice versa. The study
recommends that the Government of Kenya review its standards and audit policies to
ensure that all its institutions are compelled by regulations to adopt ISO certification
and design policies to ensure that the firms that have adopted receive support during
the ISO continuous improvements. There was a significant relationship between ISO
certification status (p-value=.029) and period after ISO certification (p-value = .004)
and financial performance of the public sector institutions.
Citation
Degree Of Master Of Business Administration, University Of Nairobi, 2014Publisher
University of Nairobi