Strategies for profitable revenue growth in a VUCA operating environment : an interpretive study of Zimbabwe commercial banks

Abstract

Purpose – The Zimbabwe business environment is widely recognized as a VUCA (volatile, uncertain, complex, and ambiguous) environment, with its after-effects being increasingly significant. This study delves into how commercial banks in Zimbabwe can formulate effective strategies to navigate this disruptive landscape. Emphasizing profitable revenue growth as a critical metric, the research explores the strategies that senior managers of commercial banks could embrace to survive and thrive in the VUCA world. Additionally, it underscores the pivotal role of senior managers' values and their association with the success or failure of their banks' strategies for revenue growth. Despite the abundance of VUCA literature, most of it is consultancy-based rather than research-based and focuses on strategies indirectly associated with revenue growth for commercial banks. Moreover, there is a noticeable absence of empirical research investigating the potential association between senior managers' values and their strategies in a VUCA environment. Design/methodology/approach - The study involved 30 participants and six commercial banks, exploring the success strategies and reasons for failure in Zimbabwe's VUCA environment from 2007 to 2019. Employing an interpretive research paradigm, the study delved into individuals' experiences using the laddering interview technique based on Kelly's Personal Construct Theory. By thematically analysing the relationship between banks' strategies and their values, the study presented significant research findings that could shape the future of banking strategies. Findings – The findings underscore the importance of aligning personal values with strategies. They suggest that senior managers implementing strategies reflecting their values significantly impact the organization's success or failure. This insight empowers senior managers to take ownership of shaping strategies that resonate with their values and ultimately enhance the organization's success. Practical implications— This study contributes to academic discourse and provides practical guidance for regulators and bankers. It offers valuable insights into effective revenue growth strategies that can be implemented during a VUCA period. Furthermore, it establishes a direct connection between these strategies and bankers' values, underscoring the practical relevance of nurturing these values within banks. Originality/value – This study contributes to the currently limited academic literature concerning strategies for achieving profitable revenue growth and their connection with the personal values of senior managers in commercial banks operating in VUCA environments. Additionally, it presents an innovative and pioneering application of the laddering technique within Zimbabwe's VUCA environment. Furthermore, it addresses survivorship bias in strategic management by integrating failed and successful commercial banks. Suggestions for business applications and further research are included.