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Predictor variables and the mediating effect of organisational levers and capabilities on organisational fitness in Zimbabwe's volatile environment

Thesis presented for the Degree of Doctor of Philosophy (Business Science, Management) in the Faculty of Commerce, Law and Management at the University of the Witwatersrand, Johannesburg, February 2017 / The business environment in the twentieth and twenty-first centuries is driven by forces that have changed the industry landscape. These forces demand a new approach in management systems that ensure organisational survival and growth. Traditional approaches based on performance strategies in dealing with business environmental changes are proving to be limited. For organisations to address these shifts, organisational fitness has assumed a new intensified prominence in both organisational and management circles. Organisational fitness is conseptualised as the ability of the organisation to alignment to its environment to learn, and to build on organisational capabilities. What is evident from both management and organisational fields is the dearth of literature on organisational fitness. This dearth of literature has been attributed to the fact that organisational fitness and organisational performance are used interchangeably by authors.
What seems unclear in the emerging stream of research on organisational fitness is the nature of variables that predict and mediate the production of organisational fitness. Furthermore, a noticeable feature of the literature that deals with organisational fitness is that it is drawn from stable environments. No doubt, the nature and scope of organisational fitness conceptualised in a volatile socio-economic environment differs considerably from that which is conceptualised in relatively stable environments.
Based on existing literature, this study investigated the relationship among organisational size, organisational learning, organisational structure (predictor variables), organisational capabilities, organisational levers (mediating variables) and organisational fitness (outcome variable). In order to establish these relationships, an empirical study was conducted using public firms that are listed on the Zimbabwe Stock Exchange. A theoretical model portraying the relationships among the investigated constructs was developed and a number of propositions were formulated based on the theoretical model of the study.
The study employed a survey research design using a quantitative research strategy. Data were collected from a non-probability and probability sample of 277 managers. A standardised measurement instrument consisting of all the variables under investigation was used and administered personally through officials of the human resources departments of the participating organisations. The hypothesised relationships were empirically tested using various statistical methods. Reliability analyses were conducted on all the measurement scales and adequate reliability was established. The content and structure of the measured constructs were investigated by means of exploratory factor analysis. To test the relationship among variables, structural equation modelling was used.
The exploratory research through the literature review considered the theoretical and conceptual differences, and the relationship between organisational performance and organisational fitness. It was established that organisational fitness plays a preparatory role that enables organisations to perform. The relationship between organisational fitness and organisational performance is largely reciprocal, as organisational performance emits feedback that enables organisational learning and informs the fitness process in its strategic alignment and organisational capabilities building roles. An organisational performance-fitness model was developed to describe the relationship between the two constructs.
The empirical research of this study established that predictor variables of organisational fitness from the existing literature (i.e., organisational size, organisational learning and organisational structure) do not predict organisational fitness in a volatile environment such as Zimbabwe. The mediating effects of organisational capabilities and organisational levers were also not confirmed by the research. The research confirmed a combined mediating effect of organisational capabilities and levers on the relationship between organisational structure and fitness. The research established interesting directions in the relationships between organisational size and organisational structure, organisational levers and organisational structure, organisational capabilities and organisational levers, organisational learning and organisational levers, and organisational capabilities and organisational fitness.
The findings of the present study represent an incremental and meaningful contribution to the existing literature on organisational fitness, particularly in a volatile environment. The study also provides practical implications that could assist organisational managers to design organisational structures that will foster organisational learning and develop capabilities that will assist in the alignment of organisations to the operating environment in order to achieve fitness. The adoption of a hybrid organisational structure that is both mechanistic and organic in nature will enable organisations to handle the volatile environment in a way that will foster organisational learning and create much-needed organisational capabilities.
The limitations of this research will trigger a scholarly interest in organisational fitness and will serve as a guideline for future research. / XL2018

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/24121
Date January 2017
CreatorsSibindi, Ntandoyenkosi
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis
FormatOnline resource (xvii, 271 leaves), application/pdf

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