Effects of Procurement Plan on Financial Performance of Public Institutions in Rwanda: A Case of Rwanda Transport Development Agency

Authors

  • Musoni Jacques Mount Kenya University, Kigali, Rwanda
  • Dr. Martin Kimemia Gathiru, PhD Mount Kenya University, Kigali, Rwanda

DOI:

https://doi.org/10.53819/81018102t2265

Abstract

The purpose of this study was to examine effects of procurement plan to the financial performance of public institutions from 2017 to 2023 using a case of RTDA. The specific objectives were to study the effects of needs assessments to the effective use of budget in RTDA, to analyse the effects of quality specification on the effective use of budget in RTDA, to study the effects of proper cost estimation to the revenues/expenditure’s relationship of RTDA, and to study the impacts of terms of payment to the value of invoices pending of RTDA. The study guided by the principal-agent theory, institutional theory, and collective action theory. The study used descriptive and correlational research design, in the context of the present research it was pertinent to employ a descriptive and correlational research designs. The population for this research was 72 Rwanda Transport Development Agency staff members which use public procurement and public funds to fulfill their responsibilities. From 72 Rwanda Transport Development Agency staff members, the researcher conducted a survey to collect data from RTDA staffs amounted to 62. In this study, researcher used cluster sampling. Respondents were selected from the clusters using a basic random sampling method for the study. During this research, the data that used were primary data to collect by use of structured interview guide and secondary data that collected from existing information that has been compiled, audited, approved and published with competent organs. These reports included any written documents and published financial statements that contain information about the issue worked on. The researcher collected data from text books, journals, financial statements and reports or any other relevant publication of the institution under study within a given scope of time. The researcher analysed quantitative data using both descriptive frequencies, mean and standard deviation) and inferential statistics (correlation and regression analysis), qualitative data analysed using content analysis. The results showed p=0.000<0.05 and a 0.731 Pearson correlation value. This suggests that there is a strong connection between the effectiveness of RTDA and the assessment of need identification. The findings of the correlation show a probability value of 0.000, which is less than the level of significance (0.05), and a Pearson coefficient of 0.754, which shows that the performance of RTDA is highly correlated with the assessment of quality specifications. The outcomes showed p=0.000<0.05 and a 0.772 Pearson correlation value. This suggests that there is a strong correlation between the effectiveness of RTDA and proper cost estimation. Correlation results indicate a probability value of 0.000 that is less than significant level (0.05) and a Pearson coefficient of 0.794 indicating that Terms of payment is highly correlated with the performance of RTDA. RTDA should strengthen needs assessment by engaging stakeholders and forecasting future requirements.

Author Biographies

Musoni Jacques, Mount Kenya University, Kigali, Rwanda

Master of Science Degree in Procurement and Supply Chain Management, Mount Kenya University, Kigali, Rwanda

Dr. Martin Kimemia Gathiru, PhD, Mount Kenya University, Kigali, Rwanda

Lecturer, Mount Kenya University, Kigali, Rwanda

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Published

2023-11-09

How to Cite

Musoni, J., & Gathiru, M. K. (2023). Effects of Procurement Plan on Financial Performance of Public Institutions in Rwanda: A Case of Rwanda Transport Development Agency. Journal of Procurement & Supply Chain, 7(3), 74–86. https://doi.org/10.53819/81018102t2265

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Articles