Supply Chain Integration and Performance of Manufacturing SMES in Rwanda

Abstract

This study aimed to determine the relationship between Supply Chain integration and the performance of manufacturing SMEs in Rwanda. This is to address how Manufacturing SMEs in Rwanda struggle with supply chain performance due to limited integration with suppliers and customers because of weak supplier-customer integration, limited strategic partnership, poor internal coordination and data sharing, and low adoption of ICT and logistics solutions, and address the gap of limited empirical evidence on SCI practices. The study was guided by the following objectives: SC communication integration, SC Customer integration, SC Collaboration integration, and performance measurement integration, respectively. This study used the Resource-Based View theory, network Theory, and Supply Chain Operational Reference (SCOR) Model. The study adopted a cross-sectional research design and a positivist research philosophy. The study population was 682 manufacturing SMEs. A stratified random sampling technique was used to select the required sample. The pilot study was carried out in twelve (12) manufacturing SMEs, where 25 questionnaires were distributed. All the variables tested in the pilot study had a Cronbach's alpha value greater than 0.7. This suggests that all the questionnaires used in the study were reliable. Therefore, the questionnaire was both valid and reliable, and it was used to collect data for this study. Inferential statistics were employed to examine the relationship between study variables, utilizing both Pearson correlation and multiple regression analysis models. The significance of the model was tested at a 5% significance level. Data was collected through the questionnaires and the interview guide. The qualitative data were presented using descriptive statistical techniques, including frequency, mean, and standard deviation. Data were analyzed using the Statistical Package for the Social Sciences version 26, and the results were presented in the form of tables, figures, and histograms. The study likely employed tables (descriptive, correlation, regression, and factor analysis) and graphs as its primary data presentation techniques. The key findings indicate that SC communication, SC customer, SC collaboration, and performance measurement integration collectively explained 71.9% of the performance of manufacturing SMEs in Rwanda. The study offers managers actionable insights into key factors influencing SME manufacturing performance, enabling improved resource utilization and sustainable competitiveness. The study informs policy decisions aimed at addressing performance challenges, enhancing productivity, and strengthening the competitiveness of manufacturing SMEs in Rwanda. It expands the body of knowledge on supply chain integration and SME performance, identifies research gaps, and offers a foundation for future theoretical and empirical studies. The study concludes that communication integration is the strongest predictor of performance of SMEs, while information sharing shows the weakest effect, with other factors (customer, performance measurement, and collaboration integration) having a moderate influence. It recommends enhancing real-time communication, customer involvement, KPI alignment, collaborative partnerships, and cloud-based data sharing to strengthen supply chain performance.