An evaluation of the use of the resource based view (RBV) theory of the firm in Zimbabwe's public sector: The case of Zimbabwe National Water Authority (ZINWA)

Abstract

This study focused on the evaluation of the use of the Resource Based View (RBV) theory of the firm in the public sector of Zimbabwe using Zimbabwe National Water Authority as a typical case. The research was based on the RBV theory that states that every organization is made up of an organogram and a bundle of resources which are integrated to perform profitable objectives. Firm resources that are valuable, rare, in-imitable and non-substitutable (VRIN) together with its core competencies give the organization a sustainable competitive advantage over others.

Data was collected from six respondents using semi structured self administered questionnaires and three semi structured interviews. The informants were managers involved in the strategic business planning, implementation, monitoring and evaluation of ZINWA. This data was presented and analysed using data display tables and descriptive analysis.

The study showed that ZINWA had human capital, water infrastructure, finances, buildings and equipment as its resources and only the first two followed the VRIN model. Civil engineering, water resources management, repair and maintenance of water equipment and the ability to perform under harsh economic conditions came out as the core competencies of ZINWA. However the authority did not make use of its resources and core competencies to increase its viability and they could be used to increase its profitability through rationalization of operating costs, water tariff rationalization, re-orientation of staff, water bottling, water kiosks, fisheries, lodges, hydro-electricity power generation and irrigation development. Conclusively there was no application of the RBV theory of the firm in strategic business management of ZINWA and thus public organizations in Zimbabwe. The study recommends ZINWA to carryout valuation of its resources and uses them together with their core competencies to come up with projects that bring in extra revenue to improve its profitability.