Effect of Contract Compliance on Organizational Performance: A Case of MTN Rwanda
Nicolas Shyaka and Joseph Akumuntu
University of Kigali
https://orcid.org/0009-0002-5740-3372
Email: shyakanico@gmail.com
Abstract: This study assessed the effect of contract compliance on organizational performance of MTN Rwanda. Contract terms adherence, contract legal compliance, contract implementation compliance, and contract monitoring were examined as predictors of organizational performance. Transaction Cost Economics Theory, Agency Theory, Institutional Theory, and Stakeholder Theory guided the analysis. A descriptive and explanatory design combined quantitative and qualitative approaches. The target population comprised 300 employees, from whom 172 respondents were selected through stratified and simple random sampling. Questionnaires, interviews, and documentation were used to collect data, while 158 complete questionnaires were analysed using SPSS through descriptive statistics, Pearson correlation, and multiple regression. Contract terms adherence had a positive significant effect on organizational performance (B = 0.209; t = 2.843; p = 0.005), as did contract legal compliance (B = 0.195; t = 2.596; p = 0.010), contract implementation compliance (B = 0.285; t = 3.632; p = 0.000), and contract monitoring (B = 0.271; t = 3.505; p = 0.001). The model explained 68.2% of the variation in organizational performance. The study concluded that disciplined contractual execution, lawful compliance, implementation control, and continuous monitoring strengthened organizational performance. It recommended obligation registers, compliance reviews, controlled implementation procedures, and supplier-performance monitoring.
