The Zimbabwean Banking Sector in the 21st Century: A Journey Towards Organisational Learning

Abstract

Organisational Learning (OL) has become a crucial strategic and dynamic capability, enabling firms to adapt their business models for sustained relevance and competitiveness in today's dynamic business environment. However, its adoption in the developing world has been slow. The collapse of nearly half (48.6%) of Zimbabwean banks, primarily indigenous institutions, within two decades starkly illustrates this challenge, especially considering the banking sector's critical role in any economy. This study examines the extent to which organisational learning has been adopted within the Zimbabwean banking sector and its impact on bank performance. A mixed methods approach was used, employing a self-administered questionnaire with openended questions distributed to 211 executives and senior managers at nineteen Zimbabwean banks, yielding a 79.6% response rate. Data were analysed using the Framework Analysis method. The findings suggest a positive trend in organisational learning levels, with most banks progressing from single loop to adaptive or generative learning. Significantly, foreign and dually owned banks were more likely to demonstrate generative learning, a level associated with greater effectiveness in turbulent environments, potentially explaining the disproportionate failure of indigenous banks between 1998 and 2018. This study contributed to the academic understanding of organisational learning, a concept that remained underexplored and under-appreciated in developing economies. Moreover, it emphasised the importance of continuously challenging existing business models to navigate dynamic market conditions like those in Zimbabwe. It is essential for organisational survival and success to continue to develop and actively promote higher levels of organisational learning.