EFFECT OF PROJECT GOVERNANCE MODELS ON PERFORMANCE OF FINANCIAL INSTITUTIONS MERGERS AND ACQUISITIONS IN RWANDA. A CASE OF BPR BANK PLC

Abstract

This study had the specific objectives such as to assess the effect of project governance models on performance of Financial Institutions mergers and acquisitions in Rwanda; to examine the effect of project team accountability and responsibilities on Performance of Financial Institutions mergers and acquisitions in Rwanda; to assess the effect of stakeholder communication strategies on Performance of Financial Institutions mergers and acquisitions in Rwanda; and to determine the effect of project risk and assurance metrics on Performance of Financial Institutions mergers and acquisitions in Rwanda. Correlative research design; a mixed approach of qualitative and quantitative approaches was all used to analyze the role of project Governance on success of mergers and acquisitions in Rwanda, with making a reference to BPR. Targeted population was 237 persons and study used the stratified and purposive sampling techniques to select 149 respondents from mergers and acquisitions based on investment finance / commercial buildings project and Rural Sector Support Project of BPR. The questionnaire, interview and observation were the most commonly used tools in gathering data. Descriptive Statistic method; multiple regression model and diagnostic tests associate with the test of Spearman correlation were used to assess the project Governance and success of mergers and acquisitions in Rwanda, with making a reference to BPR. The findings revealed the correlation analysis that demonstrates a very strong positive relationship between "Project Governance" and the "Performance of financial institutions mergers and acquisitions" in Rwanda. The Pearson correlation coefficient of 0.921 indicates a highly significant and positive association. This implies that, in the context of financial institution mergers and acquisitions, strong project governance positively influences performance. The model summary reveals that the regression model, which includes predictor variables like adequate project governance models, stakeholder communication strategies, and project risk and assurance metrics, is highly effective in explaining the variance in the "Performance of financial institutions mergers and acquisitions." The R-value of 0.930 represents a strong correlation between the predictor variables and the dependent variable, with an R Square of 0.864, meaning that approximately 86.4% of the variance in performance can be explained by the predictors. The ANOVA results confirm the overall statistical significance of the regression model. The low significance level (p = 0.000) indicates that the model as a whole has a significant relationship with the performance of mergers and acquisitions in financial institutions. The F-statistic further supports the model's effectiveness in explaining the variance. The coefficients provide insights into the individual predictor variables. Adequate project governance models, stakeholder communication strategies, and project risk and assurance metrics all have statistically significant positive effects on performance. This suggests that strengthening project governance, improving stakeholder communication, and enhancing risk management practices can significantly boost the success of mergers and acquisitions. In conclusion, these findings offer valuable insights into the factors influencing the performance of mergers and acquisitions in financial institutions in Rwanda. While the results provide strong correlations and statistical significance, they do not establish causation. Therefore, further research may be needed to explore the causal relationships underlying these findings. Overall, these findings can inform strategic decisions and guide future research in the field.

Keywords:  Project Governance Models, Financial Institutions, Mergers and Acquisitions, BPR Bank PLC, Rwanda

CITATION: Karekezi, J. L., Wanjiku, C., & Bwankarikari, E. (2023). Effect of project governance models on performance of financial institutions mergers and acquisitions in Rwanda. A case of BPR Bank PLC. The Strategic Journal of Business & Change Management, 10 (4), 916 – 930. http://dx.doi.org/10.61426/sjbcm.v10i4.2796