An Investigation of the Scope of Enhancing Bank Efficiency through Dynamic Capabilities

Abstract

The study established the scope of enhancing bank efficiency through dynamic capabilities in the Zimbabwe dollarized environment in the light of possible idiosyncratic and environmental challenges. The findings reveal that structural constraints in the Zimbabwe dollarized operating landscape, macro-economic and financial sector management flaws, stalled bank efficiency enhancement. The problem was aggravated by various environmental challenges that included working capital constraints; macroeconomic management flaws, supervisory and regulatory flaws. The study concludes that the scope to enhance bank efficiency exists, subject to resolution of the challenges identified. The study recommends strengthening bank strategic management, financial sector management, adoption of sound macroeconomic management and enhancement of efficiency measurement methodologies.