Influence of Project Appraisal Approaches on Project Performance A Case of Franchise Model Project at Jibu Rwanda

Abstract

Project appraisal approaches play a big role when it comes to selecting projects the organization is interested to implement because they help to determine whether a project is worthy to be implemented. There is a relationship between performance of an organization and project appraisal approaches applied. Project appraisal approaches strongly help to establish viability of a given project considering its financialvalue in the organization. The study intended to determine influence of financial appraisal approaches on performance of a project focusing on Jibu Rwanda. The study based and applied project cycle and project appraisal theories. Descriptive survey design was used as a model of research design and forty respondents were the study’s target population from different management levels with a census sampling method. The study used questionnaires to collect data from respondents and drop and pick later technique was applied. Reliability of the research instrument was tested using the Cronbach alpha and Cronbach’s Alpha of 0.8104 was obtained from the pilot results and the study’s instruments were considered to be reliable. Frequency distribution, tables and inferential analysis using SPSS were the descriptive statistics used to analyze data collected. The study determined the relationship between dependent and independent variables using coefficient of correlation, coefficient of determination and multiple regression analysis. After analyzing data, results obtained indicate that 89.1% of the project performance is directly affected by the use of financial appraisal approaches. The study’s results obtained indicate that financial appraisal approaches and project performance have a strong positive relationship. X1: β1 = 0, since t = 8.246, p = 0.000 is less than 0.05, X1 of financial appraisal approaches has significant influence on project performance. The study draws a conclusion that the organization should continue using financial appraisal approaches to identify and assess a potential project it is implementing. In addition, the study concludes that a project’s leadership team should identify the specific elements contributing to the project performance in regard to how the organization determines a project’s success. The study recommends Jibu to continue applying financial appraisal approaches to assess projects before they are implemented. Project leadership team at Jibu should identify specific elements contributing to the project performance in regard to how the organization determines a project’s success before resources are allocated to that project.The study recommends future researchers to conduct research on the influence of financial availability on project performance, assess impact of investment policies on project performance, and assess contribution of monitoring and evaluation on the project’s success.