Journal of Emerging Trends in Economics and Management Sciences: Home

Article Title:
Competitive Survival and Business Model Adaptability during Covi-19. A Case of the Microfinance Sector in Zimbabwe
by Kudzayi Ziki and More Chinakidzwa

Abstract:
The study explored how adaptations to the business models of micro-finance institutions resulted in competitive survival between 2016 and 2020. A number of significant changes in the external environment happened during this period which includes the abrupt currency changes and the Covid-19 associated measures such as lockdown, travel restrictions among many others. For the players in this sector to survive, some adaptations or innovations around the business model were made. However, these adaptations were expected to impact on the competitive advantage of the firm so as to allow it to survive, hence competitive survival. This study was mainly interested in establishing the exact adaptations and the impact of those adaptations to the business model on the competitive advantage of the firms during this period. The study covered the period between January 2016 and December 2020 which was a period of major changes in the external environment. The population for this study included all the non-banking micro-finance institutions in Zimbabwe totalling 209. A sample of 132 was derived using Krejcie and Morgan 1970 sample size table. A questionnaire was used to gather data from the respondents and it was administered online due to travel restrictions. A response rate of 37% was garnered and this was deemed very reliable as the total acceptable response rate of online surveys is often ranging from as low as 20%. Data analysis was carried out using IBM?s Statistical Package for Social Scientists (SPSS).The results revealed that there is a direct but weak correlation between business model and competitive survival and this was realised to be as a result of lack of unique resources and absence of dynamic capabilities. Only 18% change in competitive advantage was as a result of business model innovations carried out during this period. It is therefore the reason why the majority of these micro-finance institutions have been finding it very difficult to survive. It was recommended that for them to effectively innovate the business model so as to realise great changes in competitive advantage under hostile external environments, these institutions should acquire unique resources. These should include technological resources which would allow them to develop dynamic capabilities required for effective absorption, adaptation and innovation.

Keywords: Competitive Advantage, Survival, Business Model Adaptations, Covid-19, Organisational Resources

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