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Domitille Uwanyiligira.Pdf MANAGEMENT INFORMATION SYSTEM UTILIZATION AND MARABA COFFEE COMPANY PERORMANCE, IN RWANDA A Thesis Presented to the School of Postgraduate Studies and Research Kampala International University Kampala, Uganda In Partial Fulfillment of the Requirements for the Degree Master of Business Ad ministration Option Management By: Domitille UWANYILIGIRA Registration number: MBA/20030/82/DF June, 2011 DECLARATION A “This thesis is my original work and has not been presented for a Degree or any other academic award in any University or Institution of Learning”. omitille UWANYIRIGIRA J ne, 2011 / 4- I I R •\ DECLARATION B “I confirm that the work reported in this thesis was carried out by the candidate under my supervision”. Ylv~’ Name and Signature of Supervisor Date APPROVAL SHEET This thesis entitled “MANAGEMENT INFORMATION SYSTEM UTILIZATION AND MARABA COFFEE COMPANY PERFORMANCE IN RWANDA” prepared and submitted by Domitille UWANYIRIGIRA in partial fulfillment of the requirements for the degree of Masters of Business Administration, Option Management, has been examined and approved by the panel on or xamination. N e and Sig. of Chairperson ~ndS~Jr~~ ~ Name and Sig. of Panelist Name and Sig. of Panelist Date of Comprehensive Examinatiorr 2011 Grade: Name and Sig. of Director, SPGSR Name and Sig. of DVC, SPGSR DEDICATION This thesis is dedicated to the Almighty God, my Children, my husband, my brothers and sisters in God and to all who contributed to my studies. iv ACKNOWLEDGEMENTS Researcher is highly grateful to God who granted me life, health and protection during the study and research. Researcher also recognizes and appreciates the good roles of the lecturers, Staff members of postgraduate at KIU and colleagues for the rich ideas they have provided which were instrumental to the success of this work. Researcher is highly grateful to all staff members of Maraba Coffee for the cooperation and steadfastness during the period of collecting data. Researcher is highly grateful to DVC, SPGSR Novembrieta R. Sumil Ph.D., Chairperson of panel Dr. Manuel 0. Sumil and members of penal Dr. Kabir Haruna and Dr. Jones Orumwense for the correction ideas they have provided which rendered the high quality this research. Researcher is very grateful to the supervisor, Mr. Malinga Ramadhan, for his invaluable criticisms and advice which gave him meaningful directions throughout the period of the research work. Research is grateful to my family for the financial and to all persons who contributed to my studies. V ABSTRACT This research was carried out to contribute to the greater understanding of management information system utilization and Maraba coffee performance. Despite the fact that Maraba coffee made tremendous progress in selling its products, it is still suffering from low internal and external information operation connected to its profitability. This study was guided by three of the following objectives. The first is to determine profile of respondents, the second the level of management information systems used by various business units of Maraba coffee in the production operation. The third is to determine the extent of the company performance in Maraba coffee company, and the last is to determine if there is a significant relationship between MIS and the performance of Maraba coffee company. The research used descriptive and correlational design, and used questionnaire and interview guide questions as instruments to collect data from sample size of 332 respondents derived from a total population of 1338 employees using stratified and random sampling method. The findings discovered that business activities performance in which MIS is intensively used in the company are transaction processing, Products processing, information processing, and advertisement processing. It was concluded that MIS application! operation and the performance of Maraba coffee company have significantly the relationship. This finding was supported by the findings which stated that there is a significant relationship between MIS application and organization performance. vi TABLE OF CONTENTS CHAPTER ONE 1 THE PROBLEM AND ITS SCOPE 1 Background Information 1 Statement of the Problem 2 Purpose of the Study 3 Objectives of the Study 3 Research Questions 3 Research hypothesis 4 Scope of the Study 4 Significance of the Study 5 Operational Definitions of Key Terms 5 CHAPTER TWO 7 REVIEW OF Related LITERATURE 7 Introduction 7 Concepts, Ideas, Opinions from Authors! Experts 7 Theoretical Perspectives 20 Related Studies 20 CHAPTER THREE 22 RESEARCH METHODOLOGY 22 Research design 22 Research Population 22 Sample Size 23 Sampling Procedures 23 vii Research Instruments 24 Validity and Reliability of research instruments 24 Data Gathering Procedures 25 Data Analysis 25 Ethical Considerations 25 Limitations of the Study 26 CHAPTER FOUR 27 PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 27 Introduction 27 Profile of respondents 27 Results of research through questionnaire and interview 27 Description data by objectives 29 Pearson’s Linear Correlation Coefficient results correlating 40 CHAPTER FIVE 42 FINDINGS, CONCLUSIONS, RECOMMENDATIONS 42 FINDINGS 42 CONCLUSIONS 44 RECOMMENDATIONS 46 REFERENCES 48 viii LIST OF TABLES Table Page Maraba coffee employees departments 22 The sample size of this study using Slovin’s formula 23 Profile of respondents 27 Level of MIS 29 Extent of company performance 32 Verify hypothesis: Pearson’s Linear Correlation Coefficient.~. 40 ix LIST OF ABREVIATIONS MIS: Management Information System RWASHOSCCO: Rwanda Small Holder Specialty Coffee Company USAID: United States Agency for International Development SMEs: Small Medium Enterprises DSS: Decision Support Systems IS: Information Systems USA: United States of American IT: Information Technology US$: United States Dollar NUR: National University of Rwanda PEARL: Partnership for Enhancing Agriculture in Rwanda through Linkages TPS: Transaction Processing System ESS: Executive Support System SPSS: Statistical Package for Social Scientists C: the standard grade traded PLCC: Pearson’s Linear Correlation Coefficient x APPENDIX APPENDIX I: QUESTIONNAIRE FOR MANAGER,STAFF AND EMLPOYEES 52 APPENDIX II: INTERVIEW GUIDE 58 APPENDIX III: RESEACHERS CURRICULUM VITAE 60 xi CHAPTER ONE THE PROBLEM AND ITS SCOPE Background Information of the study Steven, (2010) defined Management Information Systems (MIS) as being the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organization. According to Geerders, (2004) Management Information Systems (MIS) can be used to facilitate access to a wide range of integrated data sets however its application is something new that came with information technology to organizations, institutions and companies. MIS application involves some strategies that support data processing of information while operating in an organization (Steven, 2010). Since 1900 Rwandans had no the strategies of MIS application for producing the commercial products. Thus, it leads to the majority of products to be below grade C (the standard grade traded) due to the lack of fine quality consistency of the products. According to Steven,(2010) the use of management information system were confined to specific business functional activities such as office operations only and not other production operations thus it lead to poor performance of Maraba coffee company. From the year 2000 the farmers were supported by the National University of Rwanda (NUR) and the partnerships who want to enhance agriculture in Rwanda such as United States Agency for International Development (USAID). These Partnerships supported Agriculture of Maraba coffee and improved the quality of the products but its aspects of MIS were ignored a bit. The products were going to the markets Union Hand Roasted Company based on the United Kingdom in England and other products to the Community Coffee Company based in Louisiana in United States of American. (Steven, 2010) 1 In the year 2003, the Maraba coffee made a progress and gained 35 000 $ net profits because of selling its products to these markets but its aspects of MIS is still ignored not well managed. The issue of MIS application is something new it came with information technology it is not used well in Rwanda .This research wants to establish effectiveness of management information system (MIS) utilization and the performance of Maraba coffee company. (Steven, 2010) Maraba coffee products were among these products and were classed below Grade C (the standard grade traded) on the global coffee markets. The smallholders had no better means to prepare their coffee. This meant that the buyers paid only US$0.33 per kilogram of coffee, and the farmers were living in extreme poverty. Within the time limit the farmers needed to produce excellent coffee. They hoped that they would be able to increase their revenue by selling directly to the exporters in Kigali rather than having intermediary transports. (Steven, 2010) Statement of the Prob’em Since before and after the year 1900 lack of proper information processing facilities caused Rwandese farmers to get low price for their products. This situation worsened after the 1994 genocide, when the entire country’s social, economy and infrastructures broke down and placed the greater number of population into poverty. Thus, Maraba coffee production deteriorated as well (Janzen, 1999). In the year 2000, Maraba coffee began to reform its products and has been supported by the National University
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