Effect of Contract Management Practices on Organizational Performance of Rwanda Development Board (2017-2022)

Authors

DOI:

https://doi.org/10.51867/scimundi.4.1.9

Keywords:

Contract Implementation, Contract Management, Contract Monitoring, Contract Negotiation, Organizational Performance

Abstract

The general objective of this research project was to assess the effect of contract management on organizational performance. The following were specific objectives of the study: to analyze the effect of contract planning on performance of Rwanda Development Board, find out the effect of contract negotiation on performance of Rwanda Development Board, assess the effect of contract implementation on performance of Rwanda Development Board and assess the effect of contract monitoring on performance of Rwanda Development Board. To achieve these objectives, literature was reviewed on the subject matter, and then data was collected from 156 employees of RDB and they were chosen by using census sampling technique. Questionnaire, observation, interview guide and documentation were used as tools of data collection. Data was analyzed by using both quantitative data and qualitative data by presenting the findings of respondents through the mean and standard deviation. Findings indicated that there is positive link between contract management and organizational performance whereas it was found that the effect of all contract management on organizational performance will be 1.462 percent; a unit increase in the use of contract planning would lead to an increase in RDB's performance by 19.2%; a one percent increase in the use of contract implementation would lead to an increase in RDB's performance by 3.8%; a one percent increase in the use of contract monitoring would lead to an increase in RDB's performance by 11.5%; and lastly, a one percent increase in the use of contract monitoring would lead to a 35% increase in RDB’s performance. Overall, contract monitoring had the greatest effect on RDB’s performance, followed by contract implementation, while contract planning took third place, and lastly, contract negotiation. At a 5% level of significance and a 95% level of confidence, contract planning varies at a 0.010 level of significance; contract negotiation had a 0.048 level of significance; contract implementation had a 0.031 level of significance; and contract monitoring had a 0.029 level of significance. All the variables were significant (p<0.05). The study also concludes that the main objective of contract management is to ensure that the borrower's contractors, suppliers, or consultants meet agreed project specifications and completion dates.

References

Adıgüzel, Z. (2019). Competitiveness of international business: Management, economics, technology, environment, and social study of cultural perspective. In Handbook of Research on Decision-Making Techniques in Financial Marketing (pp. 412-428). IGI Global. https://doi.org/10.4018/978-1-7998-2559-3.ch004 DOI: https://doi.org/10.4018/978-1-7998-2559-3.ch004

Aksom, H., & Tymchenko, I. (2020). How institutional theories explain and fail to explain organizations. Journal of Organizational Change Management, 33(7), 1223-1252.

https://doi.org/10.1108/JOCM-05-2019-0130 DOI: https://doi.org/10.1108/JOCM-05-2019-0130

Ali, S., Uppal, M. A., & Gulliver, S. R. (2018). A conceptual framework highlighting e-learning implementation barriers. Information Technology & People, 31(1), 156-180.

https://doi.org/10.1108/ITP-10-2016-0246 DOI: https://doi.org/10.1108/ITP-10-2016-0246

Braun, D., & Guston, D. H. (2003). Principal-agent theory and research policy: an introduction. Science and public policy, 30(5), 302-308. https://doi.org/10.3152/147154303781780290 DOI: https://doi.org/10.3152/147154303781780290

Cai, Y., & Mehari, Y. (2015). The use of institutional theory in higher education research. In Theory and method in higher education research (pp. 1-25). Emerald Group Publishing Limited. https://doi.org/10.1108/S2056-375220150000001001 DOI: https://doi.org/10.1108/S2056-375220150000001001

Druckman, D. (1986). Stages, turning points, and crises: Negotiating military base rights, Spain and the United States. Journal of Conflict Resolution, 30(2), 327-360. https://doi.org/10.1177/0022002786030002006 DOI: https://doi.org/10.1177/0022002786030002006

Dwivedi, R., & Dwivedi, P. (2021). Role of Stakeholders in Project Success: Theoretical Background and Approach. International Journal of Finance, Insurance and Risk Management, 1, 38-49. https://doi.org/10.35808/ijfirm/248 DOI: https://doi.org/10.35808/ijfirm/248

Gamariel, M., & Faustin, B. (2021). Effect of Contract Management on Purchasing Performance in Procuring Entities: A Case of Rwanda Energy Group (Reg), Kigali. Social Science Learning Education Journal, 6(11), 751-757.

Garen, J. E. (1994). Executive compensation and principal-agent theory. Journal of political economy, 102(6), 1175-1199.

https://doi.org/10.1086/261967 DOI: https://doi.org/10.1086/261967

Gordon, M. D., Morris, J. C., & Steinfeld, J. (2019). Deepwater or troubled water? Principal- Agent theory and performance-based contracting in the coast guard's deepwater modernization program. International Journal of Public Administration, 42(4), 298-309. https://doi.org/10.1080/01900692.2018.1439061 DOI: https://doi.org/10.1080/01900692.2018.1439061

Hassan, A., & Omwenga, J. Q. (2023). Contract Management and Procurement Performance of State Corporation in Kenya. International Journal of Social Science and Humanities Research (IJSSHR), 1(1), 47-73. https://doi.org/10.61108/ijsshr.v1i1.9 DOI: https://doi.org/10.61108/ijsshr.v1i1.9

Jolly, K. (2022). Effect of Contract Management Practices on Procurement Performance a Case of Nyarugenge District. International Journal of Scientific Research and Management (IJSRM), 10(12), 4293-4302. https://doi.org/10.18535/ijsrm/v10i12.em03 DOI: https://doi.org/10.18535/ijsrm/v10i12.em03

Kauppi, K. (2013). Extending the use of institutional theory in operations and supply chain management research: Review and research suggestions. International Journal of Operations & Production Management, 33(10), 1318-1345.

https://doi.org/10.1108/IJOPM-10-2011-0364 DOI: https://doi.org/10.1108/IJOPM-10-2011-0364

Khan, A. W., Khan, S. U., & Khan, F. (2017). A Case Study Protocol for Outsourcing Contract Management Model (OCMM). J. Softw., 12(5), 348-354. https://doi.org/10.17706/jsw.12.5.348-354 DOI: https://doi.org/10.17706/jsw.12.5.348-354

Kiamba, C. (2016). An innovative model of funding higher education in Kenya: The universities fund. Towards innovative models for funding higher education in Africa, 25-38.

Kim, S. (2015). Toward financially effective contract management: comparing perceptions of contract managers in the public and private sectors (Doctoral dissertation, Rutgers University-Graduate School-Newark).

Kipkemoi, E., & Gacuiri, J. (2018). The Influence of Budgetary Allocations on Effective Procurement Contract Administration in Public Secondary Schools in Mogotio Sub County, Kenya. International Journal of Business Management and Processes (ISSN 2616-3209), 2(3), 9-9.

Marwanga, J. M. (2015). Challenges of the Implementation of Performance Contracting Strategy at The National Aids Control Council, Kenya (Doctoral dissertation, University of Nairobi).

Matto, M. C., Ame, A. M., & Nsimbila, P. M. (2021). Tender process and value for money in Tanzania public procurement. International Journal of Logistics Economics and Globalisation, 9(1), 1-23. https://doi.org/10.1504/IJLEG.2021.116218 DOI: https://doi.org/10.1504/IJLEG.2021.116218

Obanda, W. P. (2010). Fighting corruption in tactical procurement (Doctoral dissertation, PHD dissertation).

Odhiambo, B. N., & Kwasira, J. (2019). Determinants of successful procurement contract awards in the county government of Migori, Kenya. International Journal of Social Sciences and Information Technology, 4(11), 13-32.

Sriboonchitta, S., & Wiboonpoongse, A. (2008). Overview of Contract Farming in Thailand: Lessons learned. ADBI Discussion Paper 112. Tokyo: Asian Development Bank Institute. https://www.adb.org/sites/default/files/publication/156751/adbi-dp112.pdf

Tallam, L. K., & Kibet, Y., (2018). Monitoring Intensity and Procurement Performance. Empirical Evidence from Elgeyo Marakwet County, Kenya. International Journal of Scientific and Technological Research (IJSTER), 1(1) 97-108.

Thai, K. V. (2017). International public procurement: Concepts and practices. In International handbook of public procurement (pp. 1-24). Routledge. https://doi.org/10.4324/9781315092539-1 DOI: https://doi.org/10.4324/9781315092539-1

https://doi.org/10.4324/9781315092539 DOI: https://doi.org/10.4324/9781315092539

Tumuramye, B., Ntayi, J. M., & Muhwezi, M. (2018). Whistle-blowing intentions and behaviour in Ugandan public procurement. Journal of Public Procurement, 18(2), 111-130.

https://doi.org/10.1108/JOPP-06-2018-008 DOI: https://doi.org/10.1108/JOPP-06-2018-008

Umulisa, A., Mbabazize, M., & Shukla, J. (2015). Effects of project resource planning practices on project performance of Agaseke project in Kigali, Rwanda. International Journal of Business and Management Review, 3(5), 29-51.

Yegon, B., & Mbeche, W. (2018). Determinants of Procurement Contract Management of selected State Corporations in Nakuru County, Kenya. International Journal of Economics, Commerce and Management United Kingdom, 6(5), 628-644.

Downloads

Published

2024-05-15

How to Cite

Ruhuka, I., & Dushimimana, J. D. D. (2024). Effect of Contract Management Practices on Organizational Performance of Rwanda Development Board (2017-2022). SCIENCE MUNDI, 4(1), 100–111. https://doi.org/10.51867/scimundi.4.1.9