Influence of Financial Resources Management on Project Performance in Public Institutions: A Case of Kigali City (2018-2022)

Authors

DOI:

https://doi.org/10.51867/ajernet.5.2.35

Keywords:

Financial Resources Management, Kigali City, Project Performance

Abstract

In this study, we examine the impact of financial resource management on project performance. Projects in Kigali City were poorly implemented due to misappropriation of public funds and insufficient measurement of project performance, especially in subdivisions and surrounding villages, leading to project failure. In directing this research project, two purposes were set: to assess the impact of financial resource management planning on project performance in Kigali City and to examine the impact of financial resource control on project performance in Kigali City. Both financial literacy and resource dependency theories were used, furthermore in order to achieve these objectives, literature was reviewed on the subject matter including definitions of key concepts, conceptual review, theoretical framework, conceptual framework and research gap analysis, additionally the target population of the study was 312 employees of Kigali City and out of them a sample size of 175 employees were selected by using stratified sampling technique. Questionnaires, interview guides and documents were used as data collection tools. Data was processed through editing, coding and tabulation and the data also was analyzed by using descriptive statistics. Findings indicated that there is a significance relationship between financial resources management and City of Kigali’s project performance; and it was found that holding all the financial resources management to a constant zero, project performance of Kigali City will be 30.6 percent, a unit increase in the use of financial resource planning will lead to a 0.731% improvement in project performance in Kigali City, the use of financial resource management will lead to a 1% improvement in project performance in Kigali City.  The regression analysis revealed significant coefficients indicating the impact of financial resource management on project performance in Kigali City. With a constant of 0.346, when financial resource management is absent, the project performance is estimated to be 30.6%. For every unit increase in financial resource planning, there is a corresponding 0.731% rise in project performance (Beta = 0.731, t = 6.008, p < 0.001), and similarly, a 1% increase in financial resource control leads to enhanced project performance (Beta = 0.500, t = 2.550, p = 0.025). Notably, financial resource planning exerts the strongest influence on project performance, followed by financial resource control. Both variables demonstrated statistical significance, with p-values of 0.000 and 0.025 respectively, at a 95% confidence level. Thus, all factors examined are deemed significant (p < 0.05). Therefore, based on the findings, the researchers recommend that the public entity Kigali City should continuously ensure that it has financial control expertise to ensure organizational performance.

References

Al-Dioji, M. H., & Musa, E. A. (2022). Contextual Integration in Iraqi City Center Development Projects. International Journal of Innovative Science, Engineering & Technology, 9(4), 182-197.

Allen, F., Otchere, I., & Senbet, L. W. (2011). African financial systems: A review. Review of Development Finance, 1(2), 79-113. https://doi.org/10.1016/j.rdf.2011.03.003 DOI: https://doi.org/10.1016/j.rdf.2011.03.003

Anxo, D., & Karlsson, M. (2019). Overtime work: A review of literature and initial empirical analysis. International Labour Office, Inclusive Labour Markets, Labour Relations and Working Conditions Branch.

Atkinson, R. (1999). Project management: cost, time and quality, two best guesses and a phenomenon, its time to accept other success criteria. International journal of project management, 17(6), 337-342.

https://doi.org/10.1016/S0263-7863(98)00069-6 DOI: https://doi.org/10.1016/S0263-7863(98)00069-6

Baffoe, G., Ahmad, S., & Bhandari, R. (2020). The road to sustainable Kigali: A contextualized analysis of the challenges. Cities, 105, 102-138. https://doi.org/10.1016/j.cities.2020.102838 DOI: https://doi.org/10.1016/j.cities.2020.102838

Bearman, P. S., Jones, J., & Udry, J. R. (1997). The National Longitudinal Study of Adolescent Health: Research Design. University of North Carolina, Carolina Population Center. http://www.cpc.unc.edu/projects/addhealth/design.html

Bosire, K. K. (2016). The impact of integrated financial management information system (IFMIS) on financial probity in the public sector in Kenya (Doctoral Dissertation, University of Nairobi).

Chepngetich, P. (2016). Effect of financial literacy and performance SMEs. Evidence from Kenya. Evidence from Kenya. American Based Research Journal, 11 (2016), 26-35.

Chou, J. S., & Yang, J. G. (2012). Project management knowledge and effects on construction project outcomes: An empirical study. Project Management Journal, 43(5), 47-67. https://doi.org/10.1002/pmj.21293 DOI: https://doi.org/10.1002/pmj.21293

Dahl, O., Rundmo, T., & Olsen, E. (2022). The impact of business leaders' formal health and safety training on the establishment of robust occupational safety and health management systems: Three studies based on data from labour inspections. International Journal of Environmental Research and Public Health, 19(3), 1269.

https://doi.org/10.3390/ijerph19031269 DOI: https://doi.org/10.3390/ijerph19031269

Dikko, M. (2016). Establishing construct validity and reliability: Pilot testing of a qualitative interview for research in Takaful (Islamic insurance). The qualitative report, 21(3), 521-528. https://doi.org/10.46743/2160-3715/2016.2243 DOI: https://doi.org/10.46743/2160-3715/2016.2243

Dossou-Yovo, A. (2016). Business Environment and Small Business Growth: Does Confidence in the Business Environment Influence Small Business Owners' Intention to Grow and Growth Decisions? United States Association for Small Business and Entrepreneurship. Conference Proceedings, GZ1. United States: United States Association for Small Business and Entrepreneurship.

Drees, J. M., & Heugens, P. P. (2013). Synthesizing and extending resource dependence theory: A meta-analysis. Journal of management, 39(6), 1666-1698. https://doi.org/10.1177/0149206312471391 DOI: https://doi.org/10.1177/0149206312471391

Evans, C., & Lambert, H. (2008). The limits of behaviour change theory: condom use and contexts of HIV risk in the Kolkata sex industry. Culture, health & sexuality, 10(1), 27-41. https://doi.org/10.1080/13691050701561393 DOI: https://doi.org/10.1080/13691050701561393

Furlong, I., Jin, X., & Osei-Kyei, R. (2017). A holistic review of research studies on financial risk management in public-private partnership projects. Engineering, construction and architectural management, 28(9), 2549-2569.

https://doi.org/10.1108/ECAM-02-2020-0103 DOI: https://doi.org/10.1108/ECAM-02-2020-0103

Gallery, N., Newton, C., & Palm, C. (2011). Framework for assessing financial literacy and superannuation investment choice decisions. Australasian Accounting, Business and Finance Journal, 5(2), 3-22. https://doi.org/10.1111/j.1468-0408.2011.00526.x DOI: https://doi.org/10.1111/j.1468-0408.2011.00526.x

Gawronski, B., & Creighton, L. A. (2013). Dual Process Theories. In B. Gawronski & L. A. Creighton (Eds.), The Oxford Handbook of Social Cognition (pp. 282-312). Oxford University Press. https://doi.org/10.1093/oxfordhb/9780199730018.013.0014 DOI: https://doi.org/10.1093/oxfordhb/9780199730018.013.0014

Handoyo, B. R. M., & Bayunitri, B. I. (2021). The influence of internal audit and internal control toward fraud prevention. International Journal of Financial, Accounting, and Management, 3(1), 45-64. https://doi.org/10.35912/ijfam.v3i1.181 DOI: https://doi.org/10.35912/ijfam.v3i1.181

Hanna, S. D. (2011). The demand for financial planning services. Journal of Personal Finance, 10(1), 36-62.

Heaton, S., Teece, D., & Agronin, E. (2023). Dynamic capabilities and governance: An empirical investigation of financial performance of the higher education sector. Strategic Management Journal, 44(2), 520-548.

https://doi.org/10.1002/smj.3444 DOI: https://doi.org/10.1002/smj.3444

https://www.oag.gov.rw/fileadmin/REPORTS/Annual_Performance_Report_2023.pdf

Ionici, Octavian, & Evans C. (2023). Cash Management and Fraud Prevention. In Working Capital Management: Concepts and Strategies (pp. 183-202). https://doi.org/10.1142/9789811259661_0009 DOI: https://doi.org/10.1142/9789811259661_0009

Jobe, J. B., & Mingay, D. J. (1990). Cognitive laboratory approach to designing questionnaires for surveys of the elderly. Public Health Reports, 105(5), 518.

Kerzner, H. (2022). Project management metrics, KPIs, and dashboards: a guide to measuring and monitoring project performance. John Wiley & Sons. https://doi.org/10.1002/9781119851592 DOI: https://doi.org/10.1002/9781119851592

Kim, J., Kang, C., & Hwang, I. (2012). A practical approach to project scheduling: considering the potential quality loss cost in the time-cost tradeoff problem. International Journal of Project Management, 30(2), 264-272.

https://doi.org/10.1016/j.ijproman.2011.05.004 DOI: https://doi.org/10.1016/j.ijproman.2011.05.004

Koitaba, E., Waiganjo, M., & Wanyoike, S. (2015). An analysis of factors influencing financial control practices in community based organizations in Baringo County, Kenya. Journal of Economics, Management and Trade, 11(2), 1-10. https://doi.org/10.9734/BJEMT/2016/20158 DOI: https://doi.org/10.9734/BJEMT/2016/20158

Konchar, M., & Sanvido, V. (1999). Seven steps to on-time delivery. School Planning and Management, 38(6), 26-28.

Kunduru, A. R. (2023). Effective usage of artificial intelligence in enterprise resource planning applications. International Journal of Computer Trends and Technology, 71(4), 73-80.

https://doi.org/10.14445/22312803/IJCTT-V71I4P109 DOI: https://doi.org/10.14445/22312803/IJCTT-V71I4P109

Masson, S., Jain, R., Ganesh, N. M., & George, S. A. (2016). Operational efficiency and service delivery performance: A comparative analysis of Indian telecom service providers. Benchmarking: An International Journal, 23(4), 893-915.

https://doi.org/10.1108/BIJ-02-2014-0014 DOI: https://doi.org/10.1108/BIJ-02-2014-0014

Micheni, E. (2017). Analysis of the Critical Success Factors of Integrated Financial Management Information Systems in Selected Kenyan Counties. Journal of Finance and Accounting, 5(5), 185-192. https://doi.org/10.11648/j.jfa.20170505.12 DOI: https://doi.org/10.11648/j.jfa.20170505.12

Mishra, A.; Verma, D. & Sinha, K. K. (2011). The development and application of a process model for R&D project management in a high tech firm: A field study. Journal of Operations Management, 29(5), 462-476.

https://doi.org/10.1016/j.jom.2010.11.010 DOI: https://doi.org/10.1016/j.jom.2010.11.010

Morris, J. L., Bernard, F., Bérubé, M., Dubé, J. N., Houle, J., Laporta, D., Morin, S. N., Perreault, M., Williamson, D., & Gélinas, C. (2021). Determinants of pain assessment documentation in intensive care units. Déterminants de la documentation de l'évaluation de la douleur dans les unités de soins intensifs. Canadian journal of anaesthesia = Journal canadien d'anesthesie, 68(8), 1176-1184. https://doi.org/10.1007/s12630-021-02022-1 DOI: https://doi.org/10.1007/s12630-021-02022-1

Murindahabi, C. (2016). The trajectory of public administration in Rwanda: an appraisal. Public Policy and Administration, 6(4), 46-54.

Ndayisaba, O., & Mulungi, P. (2018). Effect of Resources Management on Project Success Implementation. A Case of Strengthening Livelihoods in Rural Rwanda Project. International Journal of Research in Management, Economics and Commerce, 8(5), 32-41.

Nkurunziza, S. (2022). Audit Standards 'Compliance and Efficiency of Government Agencies in Rwanda: A Survey of Government Agencies (Doctoral dissertation, University of Rwanda).

Omollo, B. (2018). Public financial management reforms and fiscal policy-a qualitative content analysis of the impact of PFM reforms on country budget income in Sub-Sahara Africa: A case for Kenya and Rwanda. OECD Journal on Budgeting, 18(1), 167-201. https://doi.org/10.1787/budget-18-5j8l804fvj8v DOI: https://doi.org/10.1787/budget-18-5j8l804fvj8v

Ovaska, T., & Takashima, R. (2006). Economic policy and the level of self-perceived well-being: An international comparison. The Journal of Socio-Economics, 35(2), 308-325. https://doi.org/10.1016/j.socec.2005.11.054 DOI: https://doi.org/10.1016/j.socec.2005.11.054

Pfeffer, J., & Salancik, G. R. (2003). The External Control of Organizations: A Resource Dependence Perspective. Stanford, CA: Stanford University Press.

Pride, W. M., Hughes, R. J., &Kapoor, J. R. (2018). Foundations of business. Cengage Learning.

Rezvani, A., & Khosravi, P. (2018). A comprehensive assessment of project success within various large projects. The Journal of Modern Project Management, 6(1).

Saunders, M., Lewis, P., & Thornhill, A. (2016) Research Methods for Business Students (7th ed). Pearson, Harlow.

Sebestyen, Z. (2017). Further considerations in project success. Procedia engineering, 196, 571-577. https://doi.org/10.1016/j.proeng.2017.08.032 DOI: https://doi.org/10.1016/j.proeng.2017.08.032

Serrador, P., & Turner, J. R. (2014). The relationship between project success and project efficiency. Procedia-Social and Behavioral Sciences, 119, 75-84. https://doi.org/10.1016/j.sbspro.2014.03.011 DOI: https://doi.org/10.1016/j.sbspro.2014.03.011

Setyaningsih, P. R., & Nengzih, N. (2020). Internal Control, Organizational Culture, and Quality of Information Accounting to Prevent Fraud: Case Study from Indonesia's Agriculture Industry. International Journal of Financial Research, 11(4), 316-328. https://doi.org/10.5430/ijfr.v11n4p316 DOI: https://doi.org/10.5430/ijfr.v11n4p316

Shahu, R., Pundir, A.K., & Ganapathy, L. (2012) An Empirical Study on Flexibility: A Critical Success Factor of Construction Projects. Glob J Flex Syst Manag., 13, 123-128. https://doi.org/10.1007/s40171-012-0014-5 DOI: https://doi.org/10.1007/s40171-012-0014-5

Sounders, P. S. (2016). Sampling of populations: methods and applications. John Wiley & Sons.

Stratton, S. J. (2021). Population research: convenience sampling strategies. Prehospital and disaster Medicine, 36(4), 373-374. https://doi.org/10.1017/S1049023X21000649 DOI: https://doi.org/10.1017/S1049023X21000649

Sydow, J., Lindkvist, L., & DeFillippi, R. (2004). Project-based organizations, embeddedness and repositories of knowledge. Organization studies, 25(9), 1475-1489. https://doi.org/10.1177/0170840604048162 DOI: https://doi.org/10.1177/0170840604048162

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.

Wickham, H., & Wickham, H. (2016). Data analysis (pp. 189-201). Springer International Publishing. https://doi.org/10.1007/978-3-319-24277-4_9 DOI: https://doi.org/10.1007/978-3-319-24277-4_9

Downloads

Published

2024-05-16

How to Cite

Aradukunda, A., & Sikubwabo, C. (2024). Influence of Financial Resources Management on Project Performance in Public Institutions: A Case of Kigali City (2018-2022). African Journal of Empirical Research, 5(2), 411–425. https://doi.org/10.51867/ajernet.5.2.35

Most read articles by the same author(s)