Effect of Procurement Planning on Public Institutions Performance: A Case of Rwanda Development Board

Abstract

The purpose of this study was to assess the effect of procurement planning on public institutions performance. The Rwandan Development Board (RDB) has included state agencies in the creation of procurement strategies, but their efforts have been fruitless so far. An everyday scenario would be an organization's signed contracts with its contractors seeing a rise in the amounts due to the unexpectedly high pricing on global marketplaces. In conducting this research, three objectives were laid out to assess the effects of procurement needs identification and specifications on performance of Rwanda Development Board, to find out the effect of procurement budgeting on performance of Rwanda Development Board and to examine the effect of procurement risk management on the performance of Rwanda Development Board. To accomplish these goals, we first conducted a literature study that centered on the resource-based perspective, stakeholder theory, and relationship management theory; then, we used a census sample approach to choose 156 RDB workers from whom we gathered data. Methods for gathering information included an interview guide, documentation, and a questionnaire. We used quantitative and qualitative data to examine the data. The results show that, with all procurement planning set to zero, the performance of RDB will be 147.4 percent; there will be a 36.8 percent boost in RDB performance with an increase of one unit in the use of procurement needs identification and specifications; a 63.2% boost in RDB performance with an increase of one percent in the use of procurement budgeting; and a 68.4 percent boost in RDB performance with an increase of one percentage point in the use of procurement risk management planning. From a high level of analysis, it was found that procurement risk management planning, procurement budgeting, and procurement requirements identification and specifications were the three factors that had the most impact on the performance of public institutions at RDB. Procurement requirements identification and specifications, procurement budgeting, and procurement risk management planning all had 0.011, 0.018, and 0.31 levels of significance, respectively, at a 5% level of significance and a 95% level of confidence. With p<0.05, all of the factors were considerably different. Also, the Rwanda Development Board's procurement plans and the performance of public institutions are significantly different (p=.000), according to the ANOVA test. Public sector organizations' efficiency and effectiveness are both improved by procurement planning, according to the research. Procurement planning allows the government agency to save money by consolidating comparable needs under a single contract and by dividing more complicated needs into smaller, more manageable packages. The researcher concluded that RDB could benefit from identifying possible product issues before purchase through procurement needs identification and specifications; as a result, the researcher advised that RDB and suppliers typically enter into a transactional relationship. It is recommended to collaborate with suppliers when acquiring commodities that have a greater supply risk.