Strategic Planning and Sustainability of Selected Start-Up Manufacturing Companies in Rwanda
DOI:
https://doi.org/10.53819/81018102t2573Abstract
Start-up manufacturing companies are vital drivers of industrial innovation and economic transformation, yet their long-term sustainability remains highly contingent on effective strategic planning practices. In Rwanda, many nascent manufacturing firms struggle with operational inefficiencies, resource constraints, and market volatility, underscoring the need for robust strategic frameworks. This study examined the effect of strategic planning dimensions specifically mission formulation, environmental scanning, strategic goal setting, and strategy formulation on the sustainability of selected start-up manufacturing companies in Kigali, Rwanda. A descriptive research design was employed, targeting a population of 187 registered start-up manufacturing firms employing 2–25 staff members. Using stratified proportional sampling, a sample of 127 firms was selected. Data were collected via a structured questionnaire that demonstrated high content validity (CVI = 0.967) and internal consistency (Cronbach’s α = 0.756–0.952). Data analysis involved descriptive statistics, Pearson correlation, and multiple regression using SPSS version 27. Results revealed that strategic planning collectively explains 83.2% of the variance in sustainability (R² = 0.832, F = 131.028, p < 0.001). Mission formulation emerged as the strongest predictor (β = 0.653, p < 0.000), followed by environmental scanning (β = 0.190, p = 0.002) and strategic goal setting (β = 0.094, p = 0.032). Strategy formulation showed a positive but statistically insignificant effect (β = 0.202, p = 0.076), likely due to implementation bottlenecks. The study concludes that structured strategic planning significantly enhances sustainability in start-up manufacturing firms. It is recommended that firms institutionalize clear mission communication, invest in systematic environmental “scanning, align goals with operational resources, and strengthen strategy implementation mechanisms. Policymakers should facilitate capacity-building initiatives and market intelligence platforms to support strategic management among manufacturing start-ups. Future research should adopt longitudinal designs and incorporate moderating variables such as leadership style and technological innovation.
Keywords: Strategic Planning, Sustainability, Start-up Manufacturing, Mission Formulation, Environmental Scanning, Goal Setting, Strategy Formulation, Rwanda.
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