EFFECT OF STRATEGY FORMULATION PRACTICE ON PERFORMANCE OF PUBLIC INSTITUTIONS IN RWANDA CASE STUDY OF MINISTRY OF LOCAL GOVERNMENT RWANDA

Abstract

This study investigated the effect of strategy formulation practice on the performance of public institutions in Rwanda, with a specific focus on the Ministry of Local Government. Effective strategy formulation is a crucial element in the achievement of organizational goals and the delivery of services to citizens. The study was based on Strategic Fit Theory. The research employed a descriptive survey design to systematically gather quantitative data from representative samples within the Ministry of Local Government, allowing for a quantitative description of the prevailing practices, beliefs, and attitudes related to strategy formulation. The population under consideration comprised the present workforce of 136 individuals employed at MINALOC. The study employed a methodology known as stratified sampling. The participants were instructed to complete questionnaires and participate in planned interviews in order to provide the majority of the data for the study. The aforementioned sources constituted the primary information reservoirs for the conducted study. Additionally, this study utilized secondary data, notably sourced from annual reports published by MINALOC. The analysis of the acquired data was conducted using SPSS. Percentages, rates, and counts are illustrative instances of descriptive statistical tests, while inferential statistical tests encompass the utilization of multiple regression. Once the qualitative data has been analyzed using a thematic framework, relevant quotations from respondents were incorporated into the narratives. The results of the study indicated that there was a strong positive correlation between the Strategy planning practice (β=0.559, t=1.558, p value = 0.000) emerged as the most notable and favorable factor impacting the performance of public institutions in Rwanda. In conclusion, this study's findings have important implications for our understanding of how strategic planning affects Rwanda's public institutions. The results of the regression analysis showed a strong and positive relationship between the strategic planning approaches implemented by the aforementioned public institutions and their performance outcomes. Strong correlation was found by correlation analysis, adding weight to the positive connection. Consistent evidence from a variety of analytic approaches shows that strategic planning is positively correlated with the success of Rwanda's public institutions. This indicates that businesses can significantly and measurable increase their overall performance if they make conscious efforts to improve their strategy planning methods, concentrating on variables such as external orientation, internal orientation, and functional integration. Further research in the area of strategy planning practice and its impact on organizational performance could take several directions. Investigating the moderating variables that might influence the relationship between strategy planning practice and performance could provide a deeper understanding. Factors such as organizational culture, leadership styles, and external environmental factors might play a significant role in shaping this relationship and warrant more in-depth exploration. Keywords: Strategy Formulation Practice, Performance of public institutions, Rwanda, Ministry of Local Government CITATION : Niyigaba, B. H., & Njenga, S. G. (2023). Effect of strategy formulation practice on performance of public institutions in Rwanda case study of ministry of local government Rwanda. The Strategic Journal of Business & Change Management, 10 (4), 651 – 667. http://dx.doi.org/10.61426/sjbcm.v10i4.2780.