EFFECT OF STRATEGIC ORGANIZATIONAL LEARNING ON PERFORMANCE OF MICRO FINANCE INSTITUTIONS IN RWANDA
Abstract
An organization’s strategy consists of the moves and approaches devised by management to produce successful organization performance. Formulating competitive brand strategy is an important problem for marketing managers but how these strategies are positioned is more important because strategies can always be replicated by competitors. The purpose of this study was to assess the effect of strategic organizational learning on performance of micro finance institutions in Rwanda. The study adopted a cross sectional survey which was descriptive in nature. This study used positivism research philosophy. The target population for the study comprised of the MFIs managers and some selected employees of the 21 Micro finance intuitions in Rusizi District. Stratified sampling was used to divide the target group into four strata. Purposive sampling was used to ensure that the elements in each stratum had certain characteristics relevant to the study. A pilot study was undertaken on four (4) firms to test the reliability and validity of the questionnaire. Data for the study was collected by use of questionnaires, interviews and observation using descriptive and inferential statistics. Data collected was analyzed through SPSS version 21. Data for the study was collected by use of questionnaires, interviews and observation using descriptive and inferential statistics to establish the relationship between the dependent and independent variable. The findings showed a coefficient of determination (R2) of 0.570, which meant that this variable alone explained up to 57.0% of the variations in the dependent variable, performance of micro-finance institutions in Rwanda. This implied that there exists a positive significant relationship between strategic organizational learning, and performance of micro-finance institutions in Rwanda. The hypothesis was tested by using multiple linear regression and determined using p-value. The acceptance/rejection criteria were that, if the p value is less than 0.05, was to reject the HA1 but if it was more than 0.05, the HA1 is not rejected. Therefore, the alternative hypothesis is that there is significant influence between strategic organizational learning on performance of micro finance institutions in Rwanda. Results indicated that the p-value was 0.021. This was supported by a calculated t-statistic of 2.112 that is larger than the critical t-statistic of 1.96. The alternative hypothesis was therefore not rejected. The study therefore adopted the alternative hypothesis that there is significant effect of strategic organization learning on performance of micro-finance institutions in Rwanda. The study concluded that strategic organizational learning was statistically significant in explaining the performance of micro finance institutions in Rwanda. The findings confirmed that Strategic organizational learning has significant influence on performance of micro finance institutions in Rwanda hence the need for organizations to consider use of good management practices to be able to focus on the organizational learning that may impact on the micro finance institutions in Rwanda. The study therefore recommended the micro finance institutions in Rwanda to consider adoption of good strategic management practices and review of policies related organizational learning from time to time
Keywords: Strategic Organization Learning, MFIs, Performance, and Rwanda
CITATION: Ngendahimana, V., Iravo, M. A., & Namusonge, G. (2021). Effect of strategic organizational learning on performance of micro finance institutions in Rwanda. The Strategic Journal of Business & Change Management, 8 (1), 936 – 943.
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DOI: http://dx.doi.org/10.61426/sjbcm.v8i1.1959
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