Organizational Capabilities that Can Improve Profitability of Micro-Finance Institutions in Periods of Economic Crisis. Experiences from the Zimbabwe

Josphat Nyoni, Precious Kwashirai, Oliver Kapepa, Linience Tsitsi Charuma, Andrew Jeremiah and Martin Dandira
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Josphat Nyoni: Women’s University in Africa, Harare , Zimbabwe
Precious Kwashirai: Women’s University in Africa, Harare , Zimbabwe
Oliver Kapepa: Colonnade Business Leadership School, Zimbabwe
Linience Tsitsi Charuma: Chinhoyi University of Technology, Chinhoyi, Zimbabwe
Andrew Jeremiah: Namibia University of Science and Technology, Zimbabwe
Martin Dandira: Namibia University of Science and Technology, Zimbabwe

International Journal of Research and Innovation in Social Science, 2021, vol. 05, issue 08, 459-466

Abstract: The main purpose of the study was to explore organizational capabilities that may improve the performance and competitiveness of Micro Finance Institutions (MFIs) operating in economic crisis business environment. The study was conducted using a sample of 43 MFIs in Harare. An explanatory research design was used. A survey in form of a questionnaire was used to collect data. Regression analysis was used to analyze the data. The main findings of the study are that innovative, leaning and strategic capabilities were commonly used by MFIs during the economic crisis. The study noted that the performance of MFIs used in this study was improved mainly by innovative, learning and strategic capabilities. Marketing and integrative capabilities had a weak influence on the profitability of MFIs. The study concluded that by innovative, learning and strategic capabilities are effective for MFIs during periods of economic crisis. It was also noted that MFIs that adopted the right organizational capabilities were useful in reducing poverty among females as well as well as acting as an accessible source of income during the COVID-18 period. This study therefore recommends that efforts be made by the MFIs to invest in the development of innovative, learning and strategic organizational capabilities. The study also recommends that the Government through the central banks take deliberate to efforts to assist MFIs to develop organizational capabilities such as by innovative, learning and strategic capabilities. This can be done by providing financial and technical support for the development of such organizational capabilities.

Date: 2021
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