INFLUENCE OF STRATEGIC SENSITIVITY ON THE OPERATIONAL PERFORMANCE OF THE DEVELOPMENT BANK OF RWANDA
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Abstract
This study investigates the influence of strategic sensitivity on the operational performance of the Development Bank of Rwanda (BRD). Strategic sensitivity—defined as the organization’s capacity to frequently scan its environment, timely detect industry and policy trends, and flexibly adjust strategic goals—is examined as a critical driver of efficiency, service delivery, and productivity. Employing a descriptive mixed-methods research design, data were collected from 94 employees of BRD through stratified random sampling, using structured questionnaires and semi-structured interviews. Quantitative data were analyzed using descriptive and inferential statistics, including multiple regression and ANOVA, via SPSS version 27. The findings reveal a strong, statistically significant positive relationship between strategic sensitivity and operational performance (β = 0.764, p < 0.001), with strategic sensitivity explaining 58.4% of the variance in performance outcomes. The regression model, Operational Performance = 1.936 + 0.559 × Strategic Sensitivity, confirms that enhanced strategic sensitivity directly improves institutional effectiveness. The study concludes that embedding dynamic, responsive capabilities into BRD’s operational framework is essential for achieving Rwanda’s national development objectives. Recommendations include institutionalizing real-time environmental scanning, strengthening feedback mechanisms, and fostering an adaptive organizational culture. The research contributes to both academic literature on dynamic capabilities in public financial institutions and practical strategies for improving development finance performance in emerging economies.
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