Performance Measurement Integration And Performance Of Manufacturing Firms in Rwanda

Abstract

Rwanda's manufacturing industry is essential to the country's economic growth and employment generation. Achieving sustainable development and global competitiveness necessitates the integration of performance assessment effectively. This entails measuring and optimizing organizational performance, especially in supply chains, using a variety of measures. Global market trends and resource limitations are two ongoing challenges that emphasize the necessity for reliable measuring methods. In order to give policymakers and business practitioners useful information, this study aims to assess the effect of performance measurement integration on manufacturing company performance in Rwanda, concentrating on important industries and geographical areas. Expectancy Theory and the Balanced Scorecard Framework (BSC), two important theoretical frameworks related to performance measurement integration in manufacturing businesses, are examined in the literature study. According to expectation theory, people are driven by their conviction that performance, effort, and results are all related. The BSC provides a strategy-based framework for decision-making at various organizational levels. It was created by Kaplan and Norton. The significance of integrating performance assessment in order to increase productivity, quality, customer happiness, and decision-making for small and medium-sized enterprises (SMEs) is underscored by empirical research. Performance in manufacturing is evaluated and optimized via the use of a variety of instruments and methods, including the BSC and KPIs. The study methodology utilized a quantitative analytic strategy with an explanatory approach to comprehend the relationship between manufacturing company performance and supply chain integration. The research philosophy was shaped by positivism, which prioritized quantitative approaches. Semi-structured questionnaires were used to gather data from 213 manufacturing companies; 94% of the respondents answered the questions. The integration of performance measurement has been found to have a favorable influence on the performance of manufacturing organizations through effective communication, information exchange, and strategic supplier relationships. These findings were supported by descriptive statistics. The findings showed a positive relationship between measurement integration and company performance, with integration accounting for 49.9% of the variance in performance. The results showed that efficient decision-making and information exchange among supply chain participants were influenced. Notably, framework agreements with key suppliers were frequently used in emergency situations. The functions of logistics companies, funders, governments, media, and security personnel in relief efforts were emphasized using qualitative analysis. Issues with inadequate coordination and information exchange were noted. Enhancing IT infrastructure, adopting emerging technologies, collaborating with many stakeholders, and establishing legal frameworks for production readiness are among the recommendations. The study emphasizes how crucial technology, collaboration, and integration are to maximizing the performance of industrial firms and disaster relief in Rwanda.