Abstract:
The research sought to evaluate if organic growth as a strategic growth option can lead to superior financial performance in the Zimbabwean banking sector with specific attention to BancABC. In this regard, organic growth is supposed to ensure the bank meets the minimum capital requirements by June 2014. Organic growth was found to be very profitable if well pursued by the banking sector.
The research dwelt on present knowledge of organic growth as a way of attaining business growth drawing from available literature and linking this review to answering the objectives of the study by looking at existence of frameworks that promote growth, hindrances to growth and what the management role is in fostering organic growth
The research used the qualitative approach and triangulation research method was used as it improves reliability of data and the process of gathering it. Questionnaires were used as data collection instruments for their simplicity in administering the study. The target population comprised the staff and management of BancABC. Simple random technique was used to select one hundred respondents. A response rate of 53% was achieved and it is high enough to warrant validity and reliability of the results. The findings were presented in the form of tables, graphs and pie charts.
The research proposition was that organic growth is a better way of achieving growth for BancABC so as to achieve superior financial performance which in turn will lead the bank to meet the new minimal capital requirements as set out by the regulator, the Reserve bank of Zimbabwe (RBZ). The research proposition was tested and proven.
BancABC should pursue organic growth as a strategic growth option to achieve superior financial performance that will be driven by internal resources. The bank should consider enormous commitment on human, financial and technological for it to realize meaningful organic growth.
The study proposes an area of further research to ascertain the impact of organizational culture on organic growth in the commercial banking sector of African countries.
