- Title
- A corporate strategy framework to increase financial performance in Zimbabwean firms
- Creator
- Matanhire, Farai
- Subject
- Business enterprises -- Zimbabwe -- Finance -- Management
- Date Issued
- 2021-12
- Date
- 2021-12
- Type
- Doctoral theses
- Type
- text
- Identifier
- http://hdl.handle.net/10948/54047
- Identifier
- vital:46206
- Description
- The world over, contrasting company performance by firms in the same operating environment and industry has been a conundrum. Firms do not operate in a vacuum, but within spheres where various factors around them affect their performances. To that end, heterogeneous firm performance is a common phenomenon that is influenced by a number of factors, including how management develops appropriate selections, trade-offs and calculated choices to be dissimilar from other players in the market in order to gain a competitive advantage that will lead to superior financial performance. A collection of actions that management puts in place to out-perform competing firms in order to achieve greater profitability is called corporate strategy. These plans of action include the effective management of the socio-political and cultural institutions in a manner beneficial to the organisation. This plan of action on the socio-political and cultural institutions gives rise to institutional strategic management. The formulation of corporate strategies is done through a process that involves a set of rules, ideas or beliefs called frameworks, which include the Resource Based Strategy Framework, Business Models, Innovation and Institutionalism. Research has shown that the financial performance of firms is driven by a number of factors, namely corporate strategy, industry competitiveness, operating environment and core competencies amongst other factors. There is a plethora of determinants for the performance of firms and the complexity in the current business environment that has contributed to some models becoming obsolete while others remain relevant. It is against this background that the primary research objective of establishing a corporate strategy framework used by Zimbabwean firms to increase financial performance was developed. To answer this primary research objective, secondary objectives to (a) determine the impact of the Resource-Based Strategy Framework on the financial performance of firms in Zimbabwe; (b) ascertain the impact of business models using Porter’s Generic Strategies Framework on the financial performance of firms in Zimbabwe; (c) determine the impact of the Institutional Strategy Framework on the financial performance of firms in Zimbabwe; (d) determine the impact of the Innovation Strategy Framework on the financial performance of firms in Zimbabwe; (e) establish the joint impact of the Resource-Based Strategy framework, Business Models, Institutional Strategies and Innovation Strategies on the financial performance of firms in Zimbabwe; and (f) establish other corporate strategy frameworks used by Zimbabwean firms to increase financial performance, were developed. The study population was the Zimbabwe Stock Exchange (ZSE) listed firms that fairly represented all the major operating sectors and firms in Zimbabwe. The researcher adopted a mixed research design incorporating both qualitative and quantitative methods in order to best reflect the critical strategy elements that were increasing financial performance in Zimbabwean firms. Qualitative data was collected through interviews conducted with executive managers of ZSE firms. Triangulation was achieved by comparing and contrasting data collected from interviews to secondary data extracted from websites, reports and audited financial statements. Both qualitative and quantitative data analysis was done using RQDA, an open-source computer-aided data software. ZSE listed firms were categorised into the five sectors of basic materials, consumer goods, consumer services, financial services and industrials. These firms were further categorised into excellent, medium, poor and very poor performers. Collected data was analysed to establish strategies that were used by excellent, medium, poor and very poor firms to see if they were using the same and figure out the impact of the various strategy frameworks on the financial performance on Zimbabwean firms. Data was analysed using univariate, ordinal and binomial logistics regression analysis. These data analysis models confirmed that RBS was a significant driver of financial performance for ZSE listed firms when all the strategy frameworks were combined. However, evaluating the impact of each strategy framework separately showed that all the frameworks were significant in driving financial performance, with the exception of the Institutional Strategy Framework. All the firms were doing more or less the same on Institutional Strategy Framework (ISF), hence it could not be a predictor of financial performance under the regression models. However, the ISF had a high score on univariate evaluation method. It is against this background that the study recommended the use of the Resource Based Strategy Framework (RBS) in pursuit of increasing financial performance of firms as this has been empirically found to have a significant impact on the financial performance of firms in Zimbabwe.
- Description
- Thesis (DBA) -- Faculty of Business and Economic Sciences, 2021
- Format
- computer
- Format
- online resource
- Format
- Format
- 1 online resource (xxvii, 299 pages)
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- rights holder
- Rights
- All Rights Reserved
- Rights
- Open Access
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Matanhire, F.pdf | 4 MB | Adobe Acrobat PDF | View Details Download |