The Impact of Computerized Systems on Efficiency and Productivity of Cooperatives in Rwanda. A Case Study of Cooperative Management System (CMS) Software Developed by MNK Digital Group Ltd

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 descriptive statistics showed that overall appreciation of CMS by cooperatives managers is “Good” (x̄= 3.8; σ = .270). The regression results revealed that CMS Membership management module was positive and significant to Cooperative productivity and efficiency (β1= 0.049; p< 0.05); CMS Payments management module was positive and significant to Cooperative productivity and efficiency (β2= 0.258; p< 0.05); Accounting management module was positive and significant to Cooperative productivity and efficiency (β3= 0.242; p< 0.05); CMS Human resource management module was positive and significant to Cooperative productivity and efficiency (β4= 0.016; p< 0.05); CMS Requisitioning management module was positive and significant to Cooperative productivity and efficiency (β5= 0.020; p< 0.05); CMS Credit management module was positive and significant to Cooperative productivity and efficiency (β6= 0.206; p< 0.05). The coefficient of determination R-squared value for this study is 0.705 (r > 0.7) indicating strong effect size. It shows how that the model fits the data at strong extent. These results indicate that 70.5% of variance in dependent variable was explained by independent variables meaning that 70.5% of change in Cooperative productivity and efficiency come from CMSMembMgtMod, CMSPayMgtMod, CMSAccMgtMod, CMSHrMgtMod, CMSRequisMgtMod, CMSCreditMgtMod. The main CMS challenges outline by the respondents include CMS is not free and requires additional installation and maintenance fees (x̄= 5.0; σ =.000); CMS requires advanced education level (x̄= 4.3; σ =.080); CMS has issue of confidentiality of the data managed by the government which hosts the CMS system (x̄= 5.0; σ =.000); CMS use requires additional cost for internet (x̄= 4.1; σ =.351). Proposed solutions are: Support from 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 (x̄= 4.9; σ =.290); The government should reduce the cost of internet (x̄= 4.7; σ =.151); More capacity building for cooperative managers.