PROJECT DESIGN AND IMPLEMENTATION OF COOPERATIVE MANAGEMENT SYSTEM (CMS) SOFTWARE AND ITS IMPACT ON THE EFFICIENCY AND PRODUCTIVITY OF COOPERATIVES IN RWANDA
Abstract
This research analyzed “Project design and implementation of cooperative management system (CMS) software and its impact on the efficiency and productivity of cooperatives in Rwanda” on 146 cooperatives using Cooperative Management System (CMS) across 19 districts of 4 Provinces of Rwanda (Eastern, Western, Northern, and Southern). The study used a sample of 750 respondents including 730 cooperative members from a total population of 61,320 members of 146 cooperatives plus 19 District Cooperatives Officers and 1 Director of Cooperatives Promotion and Capacity Building Unit in Rwanda Cooperative Agency (RCA). A questionnaire designed in form of five levels Likert scale was used and data was collected and analyzed through KoBo Toolbox and SPSS. The results of the research indicated that CMS has an impact on productivity and efficiency of cooperatives (x̄= 4.7; σ =.220). CMS Membership management module impacts on productivity and efficiency of cooperatives through accurate data about the members that promotes effective planning (x̄= 4.9; σ =.200); CMS Payments management module impacts on productivity and efficiency of cooperatives through promoting stakeholders’ satisfaction (x̄= 4.6; σ =.200); CMS Accounting module impacts on productivity and efficiency of cooperatives through updated, easy and quick financial reporting (x̄= 4.7; σ =.190); CMS Human resource management module impacts on productivity and efficiency of cooperatives through employee motivation and satisfaction (x̄= 4.8; σ =.200); CMS Credit management module impacts on productivity and efficiency of cooperatives through accurate and updated information about the debt owed and timely payment (x̄= 4.5; σ =.300). The main CMS challenges are the following: CMS is not free. It requires additional contribution of members to cover the cost of its installation and maintenance (x̄= 5.0; σ =.000); CMS requires the cooperatives to have among members those with advanced education level yet there are pure rural cooperatives where none have attended secondary school (x̄= 4.3; σ =.080); CMS has issue of confidentiality of the data: the data of the cooperatives are managed by the government which hosts the CMS system (x̄= 5.0; σ =.000); CMS use requires internet which incurs additional operational cost (x̄= 4.1; σ =.351); Most of cooperatives managers prefer the ordinal routine of cooperative management due to low level of understanding and flexibility to change their routine services for adopting CMS (x̄= 5.0; σ =.000). Corresponding solutions proposed by the respondents are the following: Support of the RCA on installation cost and the cooperatives should cover maintenance costs (x̄= 4.8; σ =.070); More training on even members with good primary education on the use of CMS (x̄= 4.3; σ =.380); Confederations should play important role in the management of CMS and the role of the government should be reduced with the time (x̄= 4.9; σ =.290); The government should reduce the cost of internet to be affordable for all including cooperatives using CMS system (x̄= 4.7; σ =.151); More capacity building is required for cooperative managers to open their mind on the use of ICT foe the development. Also the experience of successful cooperatives in the use of CMS should be shared among cooperatives (x̄= 4.6; σ =.400).
References
2. Joe, A. (2022). New method of data collection using the Kobo Toolbox 1. The Journal of Positive Psychology 6(4), 1527-1535.
3. Al-Shattarat, B., Hussainey, K., & Al-Shattarat, W. (2022). The impact of abnormal real earnings management to meet earnings benchmarks on future operatingperformance. . International Review of Financial Analysis, 81 , 101264.
4. ARDI. (2006). Strategic plan 2007-2009. ARDI, Kigali, Rwanda: Association Rwandaise pour la Promotion du Développement intégré .
5. Ashrafi, R., & Murtaza, M. (2018). “Use and impact of ICT on SMEs in Oman”. The electronic journal information systems evaluation 11(3) , 125- 138.
6. Azim, M. R. . (2022). E-Accounting practices of manufacturing firms in Bangladesh. International Journal of Multidisciplinary Research and Analysis, 5(9) , 2331-2338.
7. Aziz, A., Zamri, S. M. M., & Ariffin, S. A. . (2022). The challenges in implementation ofaccounting software system in Malaysia. . Quantum Journal of Social Sciences andHumanities, 3(5) , 94-106 .
8. Belyk, D & Feist, D. (2022). Software Evaluation Criteria and Terminology. The International Review of Research in Open and Distributed Learning 3(1), DOI: 10.19173/irrodl.v3i1.70.
9. Chen, D & Stroup, W. M. (2021). General Systems Theory: Toward a conceptual framework for science and technology education for all. Journal of Science Education and Technology 2(3), 447-459.
10. Chen, Y. . (2016). Spatial Autocorrelation Approaches to Testing Residuals from Least Squares Regression. . PLoS One, 11(1)., 48-61.
11. Chih-Hui L. & Sapphire, L. (2017). Systems theory In book: The International Encyclopedia of Organizational Communication. Laurie Lewis: John Wiley & Sons, Inc.Editors: Craig R. Scott.
12. Cousin,L. & Audebrand, L. K. (2019). The future of cooperative associationsin a digital era: assessing drivers and barriers of innovation. Berlin, August 2019: ICA - CCR European Research Conference.
13. Dan, V. . (2017). Empirical and Non-Empirical Methods. Munich: WileyEditors: J. Matthes, R. Potter, C. S. Davis, Ludwig-Maximilians-University of Munich.
14. Delen, D., Kuzey, C., Uyar, A. . (2013). Measuring firm performance using financial ratios: A decision tree approach. Expert System with Applications, 40, 3970-3983.
15. Develtere, P. . (2018). "Cooperative Development in Africa up to the 1990s”, in P. Develtere, I. Pollet & F. Wanyama (eds.). ILO, Geneva: Cooperating out of Poverty: The Renaissance of the African Cooperative Movement, .
16. Develtere, P., Pollet, I. & Wanyama, F., eds. (2018). Cooperating out of Poverty: The Renaissance of the African Cooperative Movement. Geneva: ILO.
17. European Parliamentary Research Service. (2019). Cooperatives: Characteristics,activities, status, challenges. PE 635.541: European Parliamentary Research Service.
18. Fatih, O. (2022). Parametric or Non-parametric: Skewness to Test Normality for Mean Comparison. International Journal of Assessment Tools in Education, 7(2), 255–265.
19. Feist, D. & Belyk, D. (2022). Software Evaluation Criteria and Terminology. The International Review of Research in Open and Distributed Learning 3(1), DOI: 10.19173/irrodl.v3i1.70.
20. GoR. (2007). Law providing for the establishment, organization and functioning of cooperative organizations in Rwanda. Official Journal no 23 bis o7, Kigali, Rwanda.
21. Habiba, Y., Azhar, M. N., Annuar, B. M.N. & Mastora, Y. (2019). Computerised accountinginformation system adoption among small and medium enterprises in Addis Ababa,Ethiopia. . International Journal of Accounting, Finance and Business (IJAFB), 4(19) , 44-60.
22. Harelimana, J.B & Mukarukaka, B. (2021). Contribution of Cooperatives to Social-Economic Development in Rwanda. Journal of Economics & Management Research, Volume 2(1), 1-5.
23. Henry, H. (2021). Cooperative Law – the translation of the cooperative principles into legal ruleswhich respect the legal concept of sustainable development. ICA: United Nations Department of Economic and Social Affairs.
24. ILO. (2002). R193 - Promotion of Cooperatives Recommendation, 2002 (No. 193). Geneva: Intenrational Labor Organisation.
25. ILO. (2022). How women fare in East African cooperatives: the case of Kenya, Tanzania and Uganda. ILO Country Office for Tanzania, Kenya, Rwanda and Uganda: Cooperative Facility for Africa (CoopAFRICA).
26. International Cooperative Alliance. (2014, July 06). Statement on the Co-operative Identity. Retrieved from https://www.westerncape.gov.za: https://www.westerncape.gov.za/text/2014/11/principles_of_a_cooperative.pdf
27. International Cooperative Alliance- Africa. (2018). Review of the existing Information Communication Technologies [ICT] in co-operatives in Africa for the purpose of establishing a flexible, user-friendly Integrated Management Information System. Nairobi, Kenya.: #Coops4dev.
28. Kapoor, R. (2022). Research methodology and Methods. AGPH: ISBN: 978-93-94339-74-3.
29. Khan, A. ( 2017). Impact of accounting information system on the organizationalperformance: a case study of Procter and Gamble. Star Research: . An InternationalOnline Journal, 5(12), 26-32.
30. Khan, Y., Afridi, F., Mumtaz, M., Shad, F. & Iqbal, A. (2022). The phisticated role of accounting information system (AIS) on the performance of Small and medium-sizedenterprises (SMEs): Evidence from an emerging economy. Competitive SocialScience Research Journal, 3(2), 199-214.
31. Lee, D. K., Junyong, I. & Sangseok, L. . (2015). Standard deviation and standard error of the mean . Korean Journal of Anesthesiology 68(3), 220-36.
32. Mabrouk, A., & Mamoghli, C. (2015). Dynamic of financial innovation and performance of banking firms: Context of an emerging banking industry. . International Research Journal of Finance and Economics, 5(3), 302-347.
33. MINICOM. (2005). Etude de base sur les coopératives au Rwanda, MINICOM, Kigali, Rwanda. Kigali: Ministry of Commerce and Industry .
34. MINICOM. (2006). National Policy on promotion of cooperatives, MINICOM, Kigali, Rwanda. Ministry of Commerce and Industry.
35. MINICOM. (2009). Rwanda Handcraft Strategic Plan Five Years (2009- 2013). Kigali: Ministry of Trade and Industry.
36. Ministry of Trade and Industry. (2018). National Policy on Cooperatives in Rwanda. Kigali: Government of Rwanda.
37. Mukarugwiza, S. (2010). The hope for rural transformation : A rejuvenating cooperative movement in Rwanda. CoopAFRICA Working Paper No.12 (p. 34). Dar es Salaam: International Labor Organisation.
38. Nassaji, H. (2019). Qualitative and descriptive research: Data type versus data analysis,. Language Teaching Research, 19(2), 129-132.
39. National Bank of Rwanda. (2022, July 31st). List of Licensed MFIs and SAC. Retrieved from https://www.bnr.rw/: file:///C:/Users/Sylvie/Downloads/List_of_Licensed_Deposit-Taking_Microfinance_Institutions_-_Non_UMURENGE_SACCOs_31-07-2022.pdf
40. Ntavyohanyuma. P. (1987). Inventaire des coopératives et groupements à vocation coopérative. Kigali : CFRC- IWACU.
41. Onduko, G. (2013). The relationship between Financial Innovation and Financial Performance among Savings and Credit Co-operatives Societies in Nairobi County, Kenya. The Quarterly Journal of Austrian Economics 5(1), 3-38.
42. Otieno,D. J. . (2016). Relationship between Financial Innovation and Financial Performance among Savings and Credit Co-operative Societies in Mombasa County, Kenya. International Journal of Bank Marketing 19( 4) , 156-65.
43. Oyebanjo, O. (2020). Adoption of Information Technology and its effect on Cooperative Performance in Egba Division, Ogun State, Nigeria. KIU Journal of Social Sciences 6(2), 343–352.
44. Pilat, D & Schreyer, P. (2021). Measuring productivity. OECD Economic Studies 2001(2), 13-13.
45. Pilat, D. (2017). Productivity in Business Services in book: Business services in European Economic GrowthPublisher: Palgrave Macmillan. DOI: 10.1057/9780230228795_4: Editors: Luis Rubalcaba, Henk Kox.
46. RCA. (2023). Statistics of cooperatives in Rwanda: Quarter Two report FY 2022-2023. Kigali: Rwanda Cooperative Agency.
47. Roopa, S. & Satya, R. M. (2017). Questionnaire Designing for a Survey. Journal of Indian Orthodontic Society, 46(4) , 37-41.
48. Stacks, D. W., & Salwen, M. B. . (2014). Integrating Theory and Practice: Starting with Questions. In D. W. Stacks & M. B. Salwen (Eds.), An Integrated Approach to Communication Theory and Research (2nd ed). New York: NY: Routledge.
49. Teijlingen, E. R. V. & Hundley, V. . (2018). The Importance of Pilot Studies. Journal of Accounting Research 11 (2018), 171–185.
50. Teodosio, V. (2017). Agricultural Cooperatives and Information Communication Technology in an emerging Asia. Proceedings at the congress on the Living Information Society: The impact of ICTs on People, Work People and Communities in Asia. . Landmark Research Journals 1(3) , 37-41.
51. Wachira, D., Muturi, P., & Sirma, J. (2014). An evaluation of the perceived effect of ICT’s on the performance of SACCO’s in Kenya. Information and Knowledge Management, 4(12), 14-32.
52. Wanyama, F. O. (2019). Cooperatives for African Development: Lessons from Eperience. Maseno University, Kenya: School of Development and Strategic Studies.
53. Wanyama, F. O., Develtere, P. & Pollet, I. . (2019). “Reinventing the Wheel? African Cooperatives in a Liberalized Economic Environment”. Annals of Public and Cooperative Economics, Vol. 80, No. 3, pp. 361-392.
54. Wanyama, F., Develtere, P. and Pollet, I. . (2009). Annals of Public and Cooperative Economic, Vol. 80, No. 3. Reinventing the Wheel? African Cooperatives in a Liberalized Economic Environment, 361-392.
55. Warmbrod, J. P. (2014). Reporting and Interpreting Scores Derived from Likert-type Scales. Journal of Agricultural Education, 55(5) , 30-47.
56. Yaghmale. (2013). Content validity and its estimation. . Journal of Medical Education Spring, 3(1)., 60.
57. Yellapu, V. . (2018). Descriptive statistics. International Journal of Academic Medicine 4(1), 60.
