Strategic Management Practices and Sustainability of Small and Medium Sized Enterprises in Processing and Manufacturing Sector in Rwanda: A Case of 7 Selected Small and Medium Sized Enterprises in Rwanda
DOI:
https://doi.org/10.53819/81018102t2249Abstract
This study aimed to investigate the influence of strategic management practices on the sustainable growth of small and medium-sized enterprises (SMEs) in Rwanda's processing and manufacturing sector, with Royal Drains Services Ltd, Tets Chaussures, Brodd Wines Ltd, The Power Ltd, Incuti Foods Ltd, Vynes Ltd, and Hope of Destiny Ltd as the focus companies. The research objectives encompassed examining the effects of strategic formulation, implementation, and evaluation on SME sustainability. The study employed a descriptive research design, focusing on seven SMEs in Rwanda's processing and manufacturing sector. The target population consisted of 97 managers and board members. Data were collected through a structured questionnaire and document review, and analyzed using descriptive statistics and regression analysis. Ethical considerations included informed consent, confidentiality, and voluntary participation. Firstly, the results on the effect of strategic formulation on SME sustainability in the processing and manufacturing sector in Rwanda was evident, with a strong mean of 4.1 and standard deviation of 0.82, demonstrating the importance of effective strategy formulation. Secondly, the contribution of strategy implementation was highlighted, with a significant mean of 4.07 and standard deviation of 0.81, emphasizing the necessity of clearly defined structures and resource allocation. Thirdly, the influence of strategy evaluation on SME sustainability was underscored, with a robust mean of 3.95 and a standard deviation of 0.91, emphasizing the critical role of well-defined key performance indicators and effective feedback mechanisms. Furthermore, the sustainable growth indicators revealed that SMEs in the processing and manufacturing sector in Rwanda are consistently focusing on sustainable practices, evidenced by means ranging from 4.1 to 4.38 and standard deviations from 0.64 to 0.92. Lastly, the strong correlations (0.859, 0.882, and 0.841) and regression coefficients (0.215, 0.222, and 0.207) confirmed the significance of strategic management practices in fostering sustainable growth for SMEs in Rwanda. The study's findings, which rejected all hypotheses, emphasized the significant influence of strategic management practices on SME sustainability. In conclusion, strategic formulation, implementation, and evaluation were identified as key contributors to sustainable business growth and performance. As a recommendation, Small and Medium Enterprises should prioritize effective strategic planning and implementation, coupled with adaptable management practices, to ensure their long-term viability in a dynamic business landscape.
Keywords: Strategic Management Practices, Sustainability of Small and Medium Sized Enterprises, Processing and Manufacturing Sector, Rwanda.
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