The strategic importance of a well-established banking sector in an economy and the pivotal role trust plays in this sector is well-documented in banking literature. Given this accepted importance of trust, it is surprising that some banks are still exhibiting more signals of distrust than of trust as expected, shattering consumer trust and confidence in the process. In response, governments, through their central banks, occasionally resort to implementing policies that focus heavily on regulation and control. These interventions are usually designed to restore consumer confidence in the banks’ future behaviours as well as providing assurance that exchanges taking place within a banking sector are safe and secure. Surprisingly, consumer trust and confidence are still elusive in some banking sectors, despite all these measures. This mixed-methods, sequential explanatory study explores the concept of trustworthiness by investigating trustworthiness dimensions of banks that drive consumer trust in the Zimbabwean banking sector that is experiencing low trust and confidence levels. To fulfil the objectives of this study, a quantitative research approach (survey) was first employed to explore bank customers’ trustworthiness perceptions on a sample of 400 customers. A qualitative research approach (semi-structured interviews), was then employed to gain a better understanding and clarification of the survey findings. Structural Equation Modeling (SEM) was applied to determine the statistical model that sought to explain the relationship among the variables. Hypotheses were then tested between model constructs to determine their influence on one another. Study findings revealed that shared values, structural assurance and integrity (consistency) are the trustworthiness determinants with the highest positive influence on bank trustworthiness. A negative relationship was found between communication and bank trustworthiness. Competence was found to have an insignificant correlation with trustworthiness. Additionally, both behavioural intentions and affective commitment (relational outcomes) were found to positively influence bank trustworthiness. This study has brought to light how trustworthiness of banks is perceived in a banking sector that is not only experiencing a confidence crisis but also in a country that is experiencing an uncertain economic and political environment within an African banking context. The final model presented in this study can be applied in trustworthiness studies in the financial services sectors, particularly in sectors that are operating in similar uncertain environments. In order to reignite consumer confidence in the banking sector, the RBZ is advised to set tighter corporate governance measures that can put a stop to activities such as insider lending that end up defrauding depositors within the banks. It is also imperative that departments such as Treasury, Risk and Credit within the RBZ and in banks are managed by competent personnel who adhere to the prudential standards of banking. Bank custodians are advised to continuously exhibit trustworthiness behaviours because customers’ trust and confidence can only be restored if there is evidence of sincere behaviours that are regarded as reflecting a trustworthy image. Planning for peak periods in terms of cash and personnel, to avoid prolonged queues and cash shortages that have become an everyday occurrence in the Zimbabwean banking sector is one way banks can improve trust and confidence. Banks should also consider providing services such as financial hardship advisory services and extended loan repayment options that can go a long way in not only assisting their customers to manage their debts, but also to show that banks are taking into consideration their customers’ current challenges and needs. Key stakeholders in the banking sector are also encouraged to share information on key developments integral to the smooth functioning of the banking sector. This information should then be disseminated to the banking public in a unified voice to avoid distortion of information that leads to financial anxiety and further erosion of trust. In the absence of formal timeous communication, bank customers may resort to relying on the grapevine and engage in speculative behaviours which can be very destructive and difficult to correct. / Business Management / D.B.L.

Doctor Legum - LLD / This thesis examines the legal framework of Zimbabwe to determine if the laws and policies which are in place create opportunities for, or barriers to, economic development. Specifically, it examines the legal framework governing trade, investment and financial services. The thesis focuses on Zimbabwe as a case study and draws lessons from South Africa. It proceeds from the premise that despite the numerous attempts made at international, regional and domestic levels to increase economic development (such as through liberalisation of markets and access to international development finance), Zimbabwe has failed to attain 'developed country' status. The purpose of the thesis is to examine the causes of poor economic performance in Zimbabwe postindependence (post-1980).

The first part of the article seeks to highlight the importance that increasingly electronic trading experience in the field of financial services, and as a result of that the new expressions that arise in providing financial transactions through a conceptual distinction of services and financial channels. In this context, new challenges for the industry players requiring them continuing specialization and innovation in product design, in order to satisfy the current demands ofconsumers who have configured one profile increasingly informed, sophisticated technology in making their consumption decisions.In the second part of the article, I will describe the local regulation which applies to electronic contracting in comparison with the regulation that applies to the traditional contracting which use printed information and oral presentations. This section identifies also the main regulatory implications for the consumer and the industry, with reference of compared experiences that may be interesting to comment on the formulation of considerations if applicable. / En la primera parte del artículo se propone destacar la importancia que crecientemente experimenta la contratación electrónica en el ámbito de los servicios financieros, y como consecuencia de ello, las nuevas expresiones que surgen en la prestación de operaciones financieras pasando por una distinciónconceptual de servicios y canales financieros. En este contexto, se configuran nuevos retos para los actores de la industria de este tipo de servicios que les exige continua especialización e innovación en el diseño de productos, de modo que éstos estén en grado de satisfacer las exigencias actuales de consumidores que cuentan con un perfil cada vez más informado, sofisticado y tecnológico en la adopción de sus decisiones de consumo.En la segunda parte del artículo se describirá el tratamiento regulatorio local aplicable a la contratación electrónica de servicios financieros, destacando aquellos aspectos regulatorios que la distinguen respecto de la contratación tradicional, esto es, la contratación presencial por medios escritos. En esta sección se identificará a su vez las principales implicancias regulatoriasde cara al consumidor y a la industria, tomando como referencia experiencias regulatorias a nivel comparado que puedan resultar interesantes de comentar en la formulación de consideraciones a que hubiera lugar.

According to the Financial Sector (FS) Charter, in August 2002, at the NEDLAC Financial Sector Summit, "the financial sector committed itself to the development of a Black Economic Empowerment (BEE) charter. It made this commitment, noting that: "Despite significant progress since the establishment of a democratic government in 1994, South African society remains characterised by racially based income and social services inequalities. This is not only unjust, but inhibits the country's ability to achieve its full economic potential. BEE is a mechanism aimed at addressing inequalities and mobilising the energies of all South Africans. It will contribute towards sustained economic growth, development and social transformation in South Africa. Inequalities also manifest themselves in the country's financial sector. A positive and proactive response from the sector through the implementation of BEE will further unlock the sector's potential, promote its global competitiveness, and enhance its world class status". Parties of the Financial Sector Charter agreed on the seven pillars below: 1) Human resource management - provide resources to develop skills of black people with the aim of increasing black participation in all levels of management in the sector. 2) Procurement policies - implement a targeted procurement strategy to enhance BEE. 3) Enterprise development - improve the level of support provided to BEE companies in all sectors of the economy. This would be achieved through skills transfer, administration and technical support. 4) Access to financial services - provide affordable financial services to the previously disadvantaged groups and making sure financial services are accessible to these groups. 5) Empowerment financing - work closely with government and government financial institutions to increase resources for empowerment financing. 6) Ownership in the financial sector - 25% of shares in each party of the FS Charter should be owned by black people by 2010. 7) Corporate social investrnent (CSI) - Each financial institution will have to spend 0.5% of their after-tax profit on corporate social investment projects. The projects should be targeted at black groups with a strong focus on transformation. The research evaluates the applicability of Lewin's Force Field Analysis (a change management model) in the implementation of the Financial Sector Charter at Standard Bank of South Africa. It attempts to achieve this by looking at how the Financial Sector Charter is being implemented at Standard Bank. The research looks at three main areas: 1) The "context" of the research problem, by seeking to understand Standard Bank's understanding of the FS Charter, the importance of implementing the FS Charter by the bank, the progress made thus far in the FS Charter implementation and comparison to the BEE scorecards of the other three main bank. 2) The "process", i.e. how the FS Charter is implemented in the bank, the driving and restraining forces of successful implementation of the FS Charter and the lessons learnt. 3) The "outcome" , i.e. benefits of implementing the FS Charter and what could be done to ensure that change management processes are successfully implemented. Personal interviews were used to discover other valuable information which was not available on the bank's published documents, and other related sources such as the Financial Sector Charter document. The sample size for the study was ten Standard Bank employees from different areas of the bank who are either senior managers or directors, in the bank. Internal publications available on the Standard Bank intranet such as the bank's employment equity plans, and the bank's sustainability reports from 2004 to 2011 (Standard Bank, 2004-2011) were analysed for the purpose of the study. The researcher also analysed public documents such as the bank's annual financial reports, bank's equity reports and internal publications on related topics of the research question. Lewin's Forces Field Analysis (FFA) points out that in any environment where change is required; there are both driving and restraining forces that influence the implementation of a change programme. The FFA is a valuable change management tool at trying to transform the behaviour of an individual, and this will lead to transformation of groups and, ultimately the organisation. It also helps to establish the balance between the driving and restraining forces of the change programme. Lewin's (1951) theory put forward the idea that change occurs in three stages: the first stage of change is unfreezing; the second stage is moving and lastly, the third stage is refreezing. In the unfreezing stage, the bank's change management initiatives would need to be directed at giving the individuals a desire and motivation to be ready and open about a planned change initiative. This could be achieved by clearly communicating why change is important, benefits of change and the compelling reasons for change. In moving, the bank would need to give support and confidence to the people affected by change in order to start accepting and buying-in to new perspectives, which enable them to realise that change will improve the current situation. In the refreezing stage, the bank would need to ensure that new patterns of behaviour are reinforced. This will ensure that the changes are applied in everyday business, and this helps create a sense of stability, where those affected by change feel comfortable and confident with the new approach of doing things. The research concludes that managers should recognise the sensitivity around transformation, and should always try to ensure that change management initiatives directed at transformation are unifying, fair and transparent. This should be done to avoid a situation where an employee (or prospective employees) and other stakeholders feel under-appreciated or overlooked because of their gender or race. This demands a carefully crafted and implemented change management programme, whose results will not only unify the bank's employees, but also create a competitive edge for the bank. Lewin's Force Field Analysis (FFA) model is a change management tool that could be used to produce such results.

Submitted by Leonardo Barros (lbbpinho@hotmail.com) on 2017-09-11T21:09:17Z No. of bitstreams: 1 Ind Serv Financeiros e PIB_Reg Quantilica_vfinal.pdf: 1283647 bytes, checksum: 8ddccbe33173406c2f4c6ff48d41296a (MD5) / Approved for entry into archive by Joana Martorini (joana.martorini@fgv.br) on 2017-09-11T21:10:50Z (GMT) No. of bitstreams: 1 Ind Serv Financeiros e PIB_Reg Quantilica_vfinal.pdf: 1283647 bytes, checksum: 8ddccbe33173406c2f4c6ff48d41296a (MD5) / Made available in DSpace on 2017-09-12T16:05:45Z (GMT). No. of bitstreams: 1 Ind Serv Financeiros e PIB_Reg Quantilica_vfinal.pdf: 1283647 bytes, checksum: 8ddccbe33173406c2f4c6ff48d41296a (MD5) Previous issue date: 2017-08-09 / This paper aims to analyze theoretically and empirically the positive relationship between the development of the financial services industry and economic growth and, based on these results, reflect the importance of this industry for Brazilian economic growth. The financial services industry influences economic growth due to the functions that its agents play in the financial system, such as: a) mobilization of resources; b) allocation of resources in space and time; c) risk management; d) selection and monitoring of companies; e) production and dissemination of information. Therefore, this work also aims to contribute with a historical review of the Financial Services industry in Brazil until the present day, collaborating with the academic literature of the lines of research on this industry. To analyze the correlation reported in many economic literatures, it was decided to apply the quantile regression technique, based on data from 81 countries, which allow an analysis of the positive impact generated by the financial system development indicators and their agents in the distribution Conditional response variable (measures of economic growth). The estimates obtained allow us to conclude: there is a positive relationship between a developed financial services industry and economic growth. And our conclusion is that Brazil has a mature and growing Financial Services industry, and according to the empirical results of this study; This segment is an important contributor to Brazilian economic growth. / Este trabalho tem o objetivo de analisar teórica e empiricamente a relação positiva existente entre desenvolvimento da indústria de serviços financeiros e crescimento econômico e, a partir desses resultados, refletir a importância dessa indústria para o crescimento econômico brasileiro. A indústria de serviços financeiros influencia o crescimento econômico devido às funções que seus agentes desempenham no sistema financeiro, tais como: a) mobilização de recursos; b) alocação dos recursos no espaço e no tempo; c) administração do risco; d) seleção e monitoramento de empresas; e) produção e divulgação de informação. Por isso, esse trabalho também tem como propósito contribuir com uma revisão histórica da indústria de Serviços Financeiros no Brasil até os dias atuais, colaborando com a literatura acadêmica das linhas de pesquisa sobre essa indústria. Para analisar a correlação relatada em tantas literaturas econômicas, decidiu-se por aplicar a técnica de Regressão Quantílica, a partir de dados de 81 países, o que permitiu uma análise da influência positiva gerada pelos indicadores de desenvolvimento do sistema financeiro e seus agentes na distribuição condicional da variável resposta (medidas de crescimento econômico). As estimativas obtidas permitem concluir: há uma relação positiva entre uma indústria de serviços financeiros desenvolvida e crescimento econômico. E nossa conclusão é que o Brasil possui uma madura e crescente indústria de Serviços Financeiros, e segundo os resultados empíricos desse estudo; esse segmento é um importante contribuinte para o crescimento econômico brasileiro.

Made available in DSpace on 2010-04-20T20:14:33Z (GMT). No. of bitstreams: 1 61070100599.pdf: 913078 bytes, checksum: 2e1dc4c65b55c3145bbab188f3146ef0 (MD5) Previous issue date: 2009-03-20T00:00:00Z / Algumas abordagens recentes chamaram a atenção para a importância das empresas mobilizarem sua capacidade produtiva para solucionar problemas das classes menos favorecidas da sociedade. Especificamente para o caso de serviços financeiros, defende-se que a atuação na baixa renda tem implicações positivas na sociedade como um todo, ao promover sua re-inclusão no sistema tradicional. Dentro desse cenário, as iniciativas de microfinanças parecem jogar luz a esse problema ao tentar levar acesso a serviços financeiros para a população de baixa renda. Porém, tais iniciativas ainda parecem não ter demonstrado o seu real potencial, e prova disso é a persistência dos crônicos indicadores de pobreza e de desigualdade social. Isso acontece porque as abordagens atuais de microfinanças apresentam limitações, dentre as quais as tecnológicas são uma das mais importantes. Por outro lado, existe um fenômeno que se manifesta especificamente no Brasil e que se refere ao grande crescimento dos chamados correspondentes bancários (CBs), em que o correspondente, que, na maior parte das vezes, é um varejo, oferta serviços em nome do banco. Alguns estudos relacionam esses dois conceitos, microfinanças e CBs, e propõem o CB como um canal tecnológico para a promoção das microfinanças. Dentro desse cenário, uma pergunta pertinente e ainda pouco explorada na literatura é: como ocorrem a adoção, implementação e uso das tecnologias de correspondentes bancários na oferta de serviços financeiros para a população de baixa renda no Brasil? De posse dessa pergunta de pesquisa, procedeu-se a um estudo de caso em profundidade e o objeto de estudo foi a forma de atuação do Banco Lemon, em especial, por possuir uma extensa rede de CBs, ser baseado exclusivamente em CBs (não tem agências físicas) e estar focado na baixa renda. A partir de uma abordagem que inclui contribuições das escolas do estruturacionismo, do construtuvismo e do contextualismo, foi possível entender como ocorreu o processo de negociação entre dois grupos relevantes, o Banco Lemon e o gestor de redes, que é um intermediário entre o banco e o varejo, na formação da tecnologia que foi adotada, implementada e usada. Os principais achados da pesquisa referem-se ao entendimento de como a tecnologia é usada para prover os serviços que o Banco Lemon quer ofertar e como dois grupos relevantes interagem, negociam e produzem a tecnologia na prática. / Recent approaches highlighted the importance of companies to redirect their productive capacity in order to meet the needs of lower-income people. When it touches financial services, some advocate participating in the lower-income segment has positive impacts on the whole society, since it brings them back to the formal market. In this context, since microfinance initiatives try to deliver financial services to the poor, they seem to throw light on this issue. On the other hand, these initiatives have not yet shown their full potential– persistent chronic poverty and inequity indicators are still at high rates. This may happen because the current microfinance initiatives have limitations, and the technological aspects are among the most important ones. At the same time, another phenomenon that takes place in Brazil is the great growth of the so-called correspondent banking (CB), where the correspondent, most of it retail shops, offer services on behalf of the bank. Some recent studies relate these two concepts–microfinance and CB–, and propose the CB as a technological channel to foster microfinance. In this regard, there is a pertinent but still scarcely developed question in the literature: how do adoption, implementation and use of the correspondent banking technology take place in the supply of financial services to the lowerincome population in Brazil? Taking this research question into account, a deep case study was conducted and its object was Banco Lemon’s way of running businesses, mainly, because it possesses a large CB network, it is based exclusively on CBs–no branches–and it is focused on the lower-income population. Using an approach that included contributions from the body of knowledge of structuralism, constructivism and contextualism, it was possible to understand how was the negotiation held between two relevant groups–Banco Lemon itself and the network integrators, which are intermediaries between Banco Lemon and the retail–in the formation of the adopted, implemented and used technology. Main findings of this research refer to the understanding of how technology is used to provide the services Banco Lemon wants to deliver and how two different relevant groups interact, negotiate and produce the technology in the practice.

Submitted by Farah Diba Mary Anni Abrantes Braga (farahdiba2010@hotmail.com) on 2018-04-06T20:06:21Z No. of bitstreams: 1 Tese Versao Final 2018.pdf: 1089729 bytes, checksum: 97fc99ec7c690fe5a2013481054451ac (MD5) / Approved for entry into archive by Debora Nunes Ferreira (debora.nunes@fgv.br) on 2018-04-06T21:46:58Z (GMT) No. of bitstreams: 1 Tese Versao Final 2018.pdf: 1089729 bytes, checksum: 97fc99ec7c690fe5a2013481054451ac (MD5) / Approved for entry into archive by Suzane Guimarães (suzane.guimaraes@fgv.br) on 2018-04-09T12:55:27Z (GMT) No. of bitstreams: 1 Tese Versao Final 2018.pdf: 1089729 bytes, checksum: 97fc99ec7c690fe5a2013481054451ac (MD5) / Made available in DSpace on 2018-04-09T12:55:27Z (GMT). No. of bitstreams: 1 Tese Versao Final 2018.pdf: 1089729 bytes, checksum: 97fc99ec7c690fe5a2013481054451ac (MD5) Previous issue date: 2018-03-09 / The findings of this research bring out how relevant are personal factors (e.g., traits), buying, and financial behaviors in predicting individuals’ indebtedness and financial well-being, if compared to predictors of debt and determinants of credit limits commonly used in used in academia and the finance industry (e.g., income, debt/income ratio, past credit usage behavior, the number of credit cards, past debt behavior, gender, age, schooling, marital status). Consumer credit has undergone a tremendous increase during recent decades in both developed and emerging economies. Brazil, which has one of the highest consumer credit interest rates in the world, has also experienced a substantial credit expansion, providing credit access to consumers who had never had access to it before, notably those in the low-income group. Both previous experience and the literature associate the access to massive amounts of credit with suboptimal and destructive forms of behavior such as impulsive buying and over-indebtedness. This kind of behavior undermines the individual’s financial well-being. In the context of financial services and the emerging Brazilian economy, this research project proposes the concept of financial preparedness for emergency (FPE), defined as ‘an individual’s state of being financially prepared to cope with a financial shock. This research posits that FPE is a critical component of financial well-being and extending on previous literature framework of drivers and consequences of financial well-being, it proposes an integrative model that investigates the role of consumer credit, money attitudes, impulsive buying and indebtedness behavior, in predicting consumers’ financial preparedness for an emergency. Employing a covariance-based structural equation modeling (CB-SEM) method to test the proposed model empirically, this study finds that personal factors, buying, and financial behaviors play a key role as antecedents of individuals’ financial preparedness. The findings suggest that individuals who see their credit limits as part of their income or are anxious about money are more prone to engage in impulsive buying and risky indebtedness behavior. Consequently, by engaging in such patterns of behavior, individuals weaken their state to cope with financial shock, which in its turn might affect their financial well-being. This research further finds that the belief that credit limits serve as income does not change the risky indebtedness behavior of low-income consumers. Furthermore, the findings suggest that the number of credit cards, gender, schooling, and age does not play any role in financial preparedness nor any of the model’s relationships. An explanation of the outcomes and various of their implications is addressed in this study. Overall, the recommendations made focus on individuals, institutions, and policymakers and the responsibility of each of these players to adopt sustainable forms of behavior, such as, building credit usage awareness, adopting and regulating tools that better identify consumers’ traits and behaviors that might lead them, and eventually society as a whole, into sound financial well-being. / Os resultados desta pesquisa revelam quão importantes são os fatores pessoais (por exemplo, traços de comportamento), o comportamento de compra e crenças financeiras, na previsão do endividamento e bem-estar financeiro dos indivíduos, em comparação indicadores financeiros comumente utilizados pela a academia e indústria financeira (por exemplo, renda, relação dívida / renda, sexo, idade, escolaridade). O crédito ao consumo sofreu um tremendo aumento durante as últimas décadas, tanto em economias desenvolvidas quanto nas emergentes. O Brasil, que tem uma das maiores taxas de juros de crédito ao consumidor do mundo, também experimentou uma substancial expansão de crédito, proporcionando acesso ao crédito a consumidores que nunca tiveram acesso a ele antes, notadamente aqueles do grupo de baixa renda. A literatura e experiência de outros países associam o acesso a enormes quantidades de crédito a comportamentos não ideias e ou destrutivos, como, a compra impulsiva e o superendividamento. Esse tipo de comportamento prejudica o bem-estar financeiro do indivíduo. No contexto dos serviços financeiros e da economia brasileira emergente, este projeto de pesquisa propõe o conceito de ‘preparação financeira para emergências’ (FPE), definido como 'o estado de um indivíduo estar financeiramente preparado para lidar com um choque financeiro'. Esta pesquisa postula que FPE é um componente crítico do bem-estar financeiro, e empregando a literatura existente propõe um modelo integrativo de causas e consequências do bem-estar financeiro. Esse modelo investiga o papel do crédito ao consumidor, atitudes monetárias, comportamento impulsivo de compra e endividamento, na previsão da preparação financeira dos consumidores para uma emergência. Empregando um método de modelagem de equações estruturais baseado em covariância (CB-SEM) para testar o modelo proposto empiricamente, este estudo descobriu que fatores pessoais, compras e comportamentos financeiros desempenham um papel fundamental como antecedentes da preparação financeira dos indivíduos. As descobertas sugerem que indivíduos que veem seus limites de crédito como parte de sua renda ou estão ansiosos em relação ao dinheiro são mais propensos a se engajar em comportamentos impulsivos de compra e endividamento. Consequentemente, ao se envolver em tais padrões de comportamento, os indivíduos enfraquecem seu estado para lidar com o choque financeiro, o que, por sua vez, pode afetar seu bem-estar financeiro. Esta pesquisa revela ainda que a crença de que os limites de crédito servem como renda não altera o comportamento arriscado de endividamento dos consumidores de baixa renda. Além disso, os resultados sugerem que o número de cartões de crédito, sexo, escolaridade e idade não desempenha nenhum papel na preparação financeira nem em nenhum dos relacionamentos do modelo. Uma explicação dos resultados e várias de suas implicações é abordada neste estudo. No geral, as recomendações focaram nos indivíduos, instituições e formuladores de políticas e na responsabilidade de cada um deles em adotar formas sustentáveis de comportamento, tais como conscientizar o uso do crédito, adotar e regular ferramentas que identifiquem melhor os traços e comportamentos dos consumidores que possam levá-los, e eventualmente a sociedade como um todo, a um bem-estar financeiro sólido.

The main objective of this study was to explain top management perceptions of industry and firm effects on firm performance through the mediation of competitive advantage in financial service firms operating in a regulated industry in a developing Ethiopian economy. The resource-based and industry-based views, constituting the two main schools of thought explaining performance variations among firms, were used as theoretical foundation of this study. Porter’s five-forces framework was used during this process. The researcher employed a post-positivist paradigm using a cross-sectional survey design. A total of 27 financial service firms (15 banks and 12 insurance firms) that had functioned for three and more years were selected for the study. The unit of analysis was ‘firms’, while respondents were top level managers with a total target population of less than 300. A census survey rather than a sample survey was undertaken. A total of 287 survey questionnaires were distributed (banks 180 and insurance industry 107), of which 215 were collected from 26 firms (15 banks and 11 insurance firms). Of the questionnaires 206 were properly completed leading to a valid response rate of 71%. These were used for the data analysis. A variance-based PLS-SEM approach, which is relevant to evaluate the predictive effects of the industry and firm factors on firm performance, was used to explain the hypothesized model using SmartPLS 2.00 software as well as the Statistical Package for the Social Sciences program. The assessment of the hypothesized model indicated that the R2 result on firm performance variance due to the combined industry effects and firm effects was 39%, indicating a moderately significant predictive accuracy of the model. The relative direct effect size (f2) of the industry on firm performance was 3%, while firm had a direct effect size of 2%, which was small. The combined indirect relative predictive accuracy of industry and firm effect sizes on firm performance through competitive advantage was high at 27%. This was driven by the relative substantial predictive power of firm effect on competitive advantage (f2 = 65%). Furthermore, the predictive capability (Q2) assessment result of the model indicated that both industry and firm effects had a 23% relevant predictive power on firm performance. The direct relative measure of the predictive relevance (q2) value of industry effect (q2 = 0.02) on firm performance was relatively higher than that of the firm effect (q2 = 0.01). Competitive advantage had a relative predictive power of 0.12, which was driven by the direct relative predictive capability of firm effect (q2 = 0.25) on competitive advantage. The overall assessment results of the structural model revealed that the model had satisfactory statistical power to predict the hypothetical research model. The hypothesis that industry effects had an influence on the performance of financial service firms was not supported. The result indicated that industry effects had a positive and non-significant relationship with firm performance, which points to competitiveness in the financial services industry. These results were achieved against the tenets of Porter’s five-forces framework. The hypothesis that firm effects had a positive predictive effect on firm performance was also not supported, indicating that resources and capabilities do not directly lead to improved firm performance. The direct effect of competitive advantage on firm performance was supported. The mediating effect of competitive advantage between industry effects and firm performance was not significant, while the mediation of competitive advantage between firm effects and firm performance was highly significant. The findings of this study revealed that firm effects were relevant through the mediation of competitive advantage in explaining performance variances among financial service firms, operating in a strictly regulated industry. The relative predictive power of firm effect on competitive advantage was high. Firm resources, particularly intangible resources and dynamic capabilities, are the key predictors of firm performance indirectly through the mediation of competitive advantage. Such an advantage may not last long given the excessive supervision and regulations that exist and the fact that firms are being dictated to by the government to comply with its strategic direction as opposed to pursuing their own firm specific strategies. Such practice could encourage competing financial firms to converge and pursue similar types of strategies and encourage imitations to gain short term competitive advantage and superior performance. This finding contradicts the fundamental premise of the resource-based view and firm heterogeneity even though it tentatively supports the argument made by Foss and Knudsen (2003) who argue that heterogeneity is not a necessary condition to gain competitive advantage and superior firm performance. Financial service firms should not only develop and manage their resources and capabilities, but they should also monitor the changes in the industry. This finding highlights the fact that firms can create competitive advantage and enjoy superior performance in a closed and regulated industry. The findings of this research make a significant contribution to the existing debate on the resource-based and industry-based views in explaining the causes of firms’ performance variations specifically in a regulated environment. / Business Management / D.B.L.

As a medium-sized life insurance company Assupol Life provide life insurance products to clients within government departments, although the company entered the broader private market. The enactment of the Financial Advisory and Intermediary Services Act, 2002 and the Financial Intelligence Centre Act, 2001 impacted financial service providers and the research analysed the influence of regulation on managerial decision making, marketing and sales, finance, human resources, training and the structures within the organisation to comply with the legislation. The study endeavoured to determine the influence of regulation on the company and the measures implemented by the management of Assupol Life. The research results confirmed that the primary challenge faced by the company is to find a balance between compliance, managing human capital and creating value for shareholders. The major impact of the legislation involves the human resource- and training functions and the study illustrated that other influences was less severe. / Business Administration / M. Tech. (Business Administration)

The main objective of this study was to explain top management perceptions of industry and firm effects on firm performance through the mediation of competitive advantage in financial service firms operating in a regulated industry in a developing Ethiopian economy. The resource-based and industry-based views, constituting the two main schools of thought explaining performance variations among firms, were used as theoretical foundation of this study. Porter’s five-forces framework was used during this process. The researcher employed a post-positivist paradigm using a cross-sectional survey design. A total of 27 financial service firms (15 banks and 12 insurance firms) that had functioned for three and more years were selected for the study. The unit of analysis was ‘firms’, while respondents were top level managers with a total target population of less than 300. A census survey rather than a sample survey was undertaken. A total of 287 survey questionnaires were distributed (banks 180 and insurance industry 107), of which 215 were collected from 26 firms (15 banks and 11 insurance firms). Of the questionnaires 206 were properly completed leading to a valid response rate of 71%. These were used for the data analysis. A variance-based PLS-SEM approach, which is relevant to evaluate the predictive effects of the industry and firm factors on firm performance, was used to explain the hypothesized model using SmartPLS 2.00 software as well as the Statistical Package for the Social Sciences program. The assessment of the hypothesized model indicated that the R2 result on firm performance variance due to the combined industry effects and firm effects was 39%, indicating a moderately significant predictive accuracy of the model. The relative direct effect size (f2) of the industry on firm performance was 3%, while firm had a direct effect size of 2%, which was small. The combined indirect relative predictive accuracy of industry and firm effect sizes on firm performance through competitive advantage was high at 27%. This was driven by the relative substantial predictive power of firm effect on competitive advantage (f2 = 65%). Furthermore, the predictive capability (Q2) assessment result of the model indicated that both industry and firm effects had a 23% relevant predictive power on firm performance. The direct relative measure of the predictive relevance (q2) value of industry effect (q2 = 0.02) on firm performance was relatively higher than that of the firm effect (q2 = 0.01). Competitive advantage had a relative predictive power of 0.12, which was driven by the direct relative predictive capability of firm effect (q2 = 0.25) on competitive advantage. The overall assessment results of the structural model revealed that the model had satisfactory statistical power to predict the hypothetical research model. The hypothesis that industry effects had an influence on the performance of financial service firms was not supported. The result indicated that industry effects had a positive and non-significant relationship with firm performance, which points to competitiveness in the financial services industry. These results were achieved against the tenets of Porter’s five-forces framework. The hypothesis that firm effects had a positive predictive effect on firm performance was also not supported, indicating that resources and capabilities do not directly lead to improved firm performance. The direct effect of competitive advantage on firm performance was supported. The mediating effect of competitive advantage between industry effects and firm performance was not significant, while the mediation of competitive advantage between firm effects and firm performance was highly significant. The findings of this study revealed that firm effects were relevant through the mediation of competitive advantage in explaining performance variances among financial service firms, operating in a strictly regulated industry. The relative predictive power of firm effect on competitive advantage was high. Firm resources, particularly intangible resources and dynamic capabilities, are the key predictors of firm performance indirectly through the mediation of competitive advantage. Such an advantage may not last long given the excessive supervision and regulations that exist and the fact that firms are being dictated to by the government to comply with its strategic direction as opposed to pursuing their own firm specific strategies. Such practice could encourage competing financial firms to converge and pursue similar types of strategies and encourage imitations to gain short term competitive advantage and superior performance. This finding contradicts the fundamental premise of the resource-based view and firm heterogeneity even though it tentatively supports the argument made by Foss and Knudsen (2003) who argue that heterogeneity is not a necessary condition to gain competitive advantage and superior firm performance. Financial service firms should not only develop and manage their resources and capabilities, but they should also monitor the changes in the industry. This finding highlights the fact that firms can create competitive advantage and enjoy superior performance in a closed and regulated industry. The findings of this research make a significant contribution to the existing debate on the resource-based and industry-based views in explaining the causes of firms’ performance variations specifically in a regulated environment. / Business Management / D.B.L.