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The Zimbabwe Power Company's Organizational Capabilities for

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AFRICA DEVELOPMENT AND RESOURCES RESEARCH INSTITUTE (ADRRI) JOURNAL
E-ISSN: 2343-6662
VOL. 27, NO. 6(4), APRIL, 2018
PUBLISHED BY AFRICA DEVELOPMENT AND RESOURCES RESEARCH INSTITUTE
ADRRI JOURNALS (www.adrri.org)

E-ISSN: 2343-6662 VOL. 27, No. 6(4), April, 2018
An Evaluation of Zimbabwe Power Company’s Organizational Capabilities to
Implement Zimbabwe’s National Energy Strategy
Ganyanhewe Gabriel Masanga1 and Kudzanai Samusodza2
1,2
Graduate Business School, School of Entrepreneurship and Business Sciences’
Chinhoyi University of Technology, Chinhoyi, Zimbabwe.

1Email: gabriel.masanga@gmail.com; 2Email: ksamusodza@gmail.com
1Correspondence: gabriel.masanga@gmail.com
Available Online: 30th April, 2018

URL: https://www.journals.adrri.org/
[Cite article as: Masanga, G. G. and Samusodza, K. (2018 An Evaluation of Zimbabwe Power Company’s
Organizational Capabilities to Implement Zimbabwe’s National Energy Strategy. Africa Development and
Resources Research Institute Journal, Ghana: Vol. 27, No. 6(4), Pp. 24-53, E-ISSN: 2343-6662, 30th April, 2018.]
Abstract
For over three decades Zimbabwe has experienced electrical power shortages for both domestic and
industrial use. However, in 2013, the Government formulated a national economic strategy and
mandated the Zimbabwe Power Company to generate and supply sufficient national energy by 2018.
This called for strong organizational capabilities to manipulate a set of implementation levers to
achieve the targeted tasks. This study sought to evaluate the management capabilities in the
Zimbabwe Power Company to execute the national energy strategy in accordance with the Zimbabwe
Agenda for Sustainable Socio-Economic Transformation Strategy. The study utilised a pragmatic
philosophy in a case study research design to gather information. The study established that there are
some key experts with sufficient capabilities at ZPC to execute the national strategy, although these
capabilities are not yet fully embedded. The organization has methodologies and processes in place
which ZPC can build on further. The study recommended that Government as the main shareholder
urgently finance the Zimbabwe Power Company through public private partnerships and soft loans
in order to ensure provision of sufficient energy requirements to the nation.
Keywords: Strategy, Organisational Capabilities, Socio-Economic Transformation, Energy Demand
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INTRODUCTION
Zimbabwe is grappled with severe electrical power shortages resulting in severe
load shedding and general shortage of electricity for both industrial and domestic
purposes. The shortage of power has severely affected the Zimbabwean economy
and some industries that demand excess power such as Sable Chemicals, Zimasco
and the Zimbabwe Iron and Steel Company who have either been closed or have
their operational capacities severely curtailed. The Government of Zimbabwe
through the Zimbabwe Agenda for Sustainable Socio-Economic Transformation
(ZimAsset) economic blue print, mandated the Zimbabwe Power Company (ZPC) to
embark on electricity generation projects to meet the energy demands for the nation.
Thus ZimAsset was crafted to achieve sustainable development and social equity,
anchored on indigenization, empowerment and employment creation; largely
propelled by the judicious exploitation of the country’s abundant human and natural
resources. According to the ZimAsset (2013) blue print, the energy sector was tasked
to prioritise attainment of optimal power generation and production and use of bio-
fuels. These strategies are underpinned by assumptions and actions that include:
raising the installed generation capacity of existing power stations to their optimum
generation capacities; expansion of existing power stations such as Hwange and
Kariba; completion of new big and mini-hydro-power projects such as Batoka and
Gairezi respectively; resuscitating small thermal power stations of Harare, Bulawayo
and Munyati to full power generation capacity; full utilization of alternative forms of
energy such as Coal Bed Methane Gas; and deliberate development of solar and
wind energy initiatives (ZimAsset, 2013). The mandate given to ZPC assumes that
there are sufficient organizational capabilities in the organization to implement the
strategy. However, energy demand and related organizational capabilities to
acquire, nature and deploy resources have been problems face by other countries in
the world. For instance in Egypt, Vadican (2015), researched on the domestic
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capabilities of Egypt to develop renewable energy projects in the form of solar and
wind energy projects. The key aspects looked at were capabilities to manufacture
parts and components, performance of associated services (production and project
execution capabilities), knowledge creation and research and development potential
(or innovation capabilities). Similarly, in Malaysia, Hansen (2013) carried out
research on Malaysia’s local learning and technological capabilities to build a
biomass power industry. In the study, the aspects investigated included
manufacturing processes and capabilities to manufacture parts, components,
learning and technological appreciation capabilities (knowledge creation, research
and development potential and innovation capabilities). Hansen, concluded that
significant advances in technological capability developments in some of the firms
was related to learning through networks of foreign and more advanced technology
partners.
Within the region, in South Africa, studies have been carried out on the challenges of
delivering domestic energy demands by the Electricity Supply Commission
(ESCOM, 2011). The case study of Matla revealed that organizational culture was
affecting the capabilities of the subsidiary. In Zimbabwe, the Zimbabwe Electricity
Supply Authority (ZESA) a parent company of ZPC has since 1990 failed to develop
significant additional power in Zimbabwe, for example, the Batoka Gorge
Hydroelectric Scheme and Sengwa Thermal Power Stations have been on the
drawing board since then and remain undeveloped. Thus these projects, while
deemed extremely desirable, have however, seen no progress beyond being just
plans (ZPC, 2013). During the same period, ZPC has struggled to meet its mandate
in supplying sufficient power or to make a meaningful contribution towards
adequate power supplies in Zimbabwe. The provision of power is an essential
ingredient of socio-economic development. The lack of sufficient power in
Zimbabwe has affected the economy and has become a major challenge to economic
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growth. As the national energy plan has been put in place, focus shifts to generating
interest from the employees in the ZPC since the adopted strategy is guided by
ZPC’s available capabilities. Organizational capabilities have been known to provide
foundations for strategy execution (Kaplan and Norton, 2004b) and unless there is a
correct balance between hard and soft resources, strategy execution could be difficult
to achieve. The role of managers in influencing performance is acknowledged in
literature (Lawler, 1992). However, Maister (2001) cautions against management’s
belief that managers’ strategic purpose is only to ensure that a strategy is developed;
at the expense of ensuring that the strategy is successfully implemented. Strategy
implementation is particularly dependent on the organizational processes,
structures, reward systems, roles competences and culture (O’Cass and Voola, 2011;
Tushman, 1997) and according to Barney (2002), organizational capabilities are the
major inimitable component of a company’s resources. ZPC’s ability to develop and
deploy resources to execute the strategy is influenced by its organizational
capabilities (Rumelt, 2011; Cronje and Davis, 2007). It is in this study’s interest to
collect empirical evidence that lends support to ZPC organizational capabilities to
support the new strategy execution. Thus the main objective of the study was to
evaluate the organizational capabilities at ZPC to execute the ZimAsset strategic
national energy plan.
The key questions to be addressed are as follows:
(a) What organizational capabilities exist in ZPC to execute the Zim Asset plan?
(b) Are these organizational capabilities, if any, embedded?
(c) Is there a positive relationship between the organizational capabilities and the
organization enablers to execute the national energy strategy?
The Zimasset economic blue print is being implemented in an environment when
many Zimbabwean technocrats have found the economic environment in Zimbabwe
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unpalatable and have emigrated to greener pastures within the SADCC region and
even beyond to overseas countries. Thus the study had a keen interest in establishing
the organizational capabilities at ZPC for the purposes of influencing positive
performance at the organization during the implementation of the national energy
sector strategy. Successful execution of the national energy strategy could
significantly stimulate economic development in Zimbabwe. High energy
consuming companies that have been closed could resume production if
uninterrupted energy is guaranteed.
LITERATURE REVIEW
What Organizational Capabilities are.
Literature has no agreed definition yet of organizational capabilities. However, it is
generally believed that organizational capabilities are the ability to execute the task
(WCL, 2006) or alternatively the ability to effectively meet business objectives
(ANAO 2001). However, Barney (2002) posited that organisational capabilities are
the firm’s attributes that enable organisations to coordinate and utilise their
resources. Barney focused on the firm’s characteristics as the source of ability to use
resources rather than the attributes being a resource on their own. He makes
organisational capabilities characteristics as a cocktail of the abilities, expertise and
skills of the workforce and together with the other assets, to form an organisational
asset base. From his definition, the ability to utilise resources rests with the people
within that organisation.
However, Barney’s (2002) definition seems to be unconscious of the current reality
that people are the biggest resource of any institution and does not state or explain
the goal for the coordination of resources. Alternatively, organisational capabilities
have been defined as an organisation’s capacity to deploy its assets, tangible or
intangible to perform a task or activity to improve the performance (Pearce and
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Robinson, 2015; Maritan, 2002). This definition in general, does not ignore the aspect
of people as a key resource. The definition, however, brings in the perspective of
tangible and intangible assets as well as performance as the ultimate result arising
from the execution of a task or activity. This aspect seems to agree with the tasks in
front of the Zimbabwe Power Company as it is expected to execute power projects to
satisfy the energy demands of the nation.
Furthermore, Arend (2014) as well as Barton (1992) as cited in Gill and Delahaye
(2004) introduced the aspect of competitive advantage to organizational capabilities
as the knowledge set that distinguishes and provides competitive advantage. From
this definition, both Arend and Barton actually established that there is a link
between organisational capabilities and the aspects of the resource-based view. This
definition also indicated that there are some differences in organisational capabilities
of a firm based on different knowledge sets of the organisation. That is, individual
knowledge and individual expertise matter a lot when it comes to issues of
organisational capabilities. It is a thin veil that separates organisations. This is
reinforced by Porter (2006) who said that organisations have unique resources but
these are not productive in themselves, they have to be converted into capabilities by
being managed and coordinated. Alternatively, Makadoc (2001) emphasises the
distinction between capabilities and resources by defining capabilities as a special
type of resource, specifically organisationally embedded, non-transferrable, firm
specific resource whose purpose is to improve the productivity of the other
resources possessed by the firm. This recognises that organisational capabilities are a
special type of resource, being non-transferable. The definition links to the Resource
Based View of the firm which forms the theoretical basis of the majority of the
studies in organisational capabilities. Thus the definition is very important as it
provides some linkage between organizational resources in ZPC and the embedded
capabilities to make things happen.
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Gill and Delahaye (2004), bring on the aspect of organisational capabilities as the
embodied knowledge set that supports competitive advantage through innovation
and flexibility gained by building alignment with the expertise of the strategic
direction, the organisational structure and the knowledge and expertise of the
individuals in the workforce. This aspect is critical for the ZPC as it identifies
knowledge and strategic direction as the foundation supporting competitive
advantage. As a technological organization the ZPC clearly must possess the
technical know-how to deliver the national energy requirements.
Helfat (2011; 2003) makes a simple explanation that organisational capabilities are
the organisation’s ability to perform coordinated tasks, utilising organisational
resources, for the purpose of achieving a particular end result and that what is
central to the building of the organization’s capability is the combination of human
capital, that is people skills, abilities and knowledge, social capital and aligning them
such that each supports the others (Wang and Ang (2007; 2004). Zimbabwe’s
situation and ZPC purpose as a power utility that is wholly owned by the
Government of Zimbabwe, is to focus on power generation for local consumption
requirements. This meets Helfat ,Wang and Ang performance attributes. Since ZPC
exists to address specific government mandates other than achieve profits, strategic
approaches in the public sector typically focus on ways to maximise organisational
performances. Thus, although financial profitability and sustainability is important
for the going concern of ZPC, the target of competitive advantage which is driven by
competitive market behaviour as said by Pablo et al. (2007) ranks much lower than
the socio-economic transformation and other related developmental impacts. This is
exactly what the ZimAsset strategy endeavours to achieve, that is, sustainable
development and social equity anchored on indigenization, empowerment and
employment creation, largely propelled by the judicious exploitation of the country’s
abundant human and natural resources.
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The Origins of Organizational Capabilities
Strategy scholars have ascribed the origins of capabilities with the “evolutionary”
development of the firm (Helfat, 2000). However the nature of the evolutionary
dynamics shaping organizational capabilities has been theorized in various ways.
Nelson and Winter (1982) posit quasi-Darwinian principles to this evolutionary
process. However, more recent origins of organizational capabilities can be traced
back to Schumpeter’s (1934) work on competition, based on innovation and creative
destruction processes (Ambrosini, 2009). This was further developed by Penrose
(1959) who posited that a firm is an administrative structure with productive
resources. These productive resources are both physical and human. She explained
that the physical are the tangible assets, such as plants and materials and that human
resources are the labour that the firm has available. Therefore the function of the
firm is to engage these resources to create outputs. Penrose added that in order to
maximise outputs, the firm must recognise productive opportunities, which are the
opportunities of output that are available to the firm. These are the components that
form the basis of organisational capabilities today. Wernerfelt (1984) and Barney
(1986) thus extended Penrose’s ideas into the Resource Based View of the firm. Their
work was concerned with integrating resources, scrutinising a firm’s
competitiveness from the resources side, instead of the industrial standpoint.
Accordingly, the basis of organisational capabilities lies in a firm’s bundle of
resources and its ability to convert these resources for competitive advantage.
The Significance of Capabilities in Organizations
The Australian Public Service Commision (2007) outlines the significance of
organisational capabilities as the ability of an organization to have in place the right
leadership which is able to manage its resources effectively such as employees,
through setting the right direction to the employees, motivating them as well as
developing them. It further argues that the organization must come up with
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outcome focused strategies, adopt evidence based choices as well as be able to
collaborate and build a common business purpose, hence, the ability to implement
strategies that deliver and meet customer and stakeholder’s demands. Ljungquist
(2008) suggests that capabilities are important because they may help organisations
to avoid path dependencies imposed by their current lower-order competences.
Therefore, an organisation has to develop capabilities to learn and redefine its
resource base in order to overcome the trap laid by their existing competences and
create new sources of competitive advantage. Furthermore, Bowman and Ambrosini,
(2009) highlighted that organizational capabilities, especially strategic capabilities,
enable organisations to adapt to a rapidly changing business environment. In a
globalized economy in which ZPC finds itself, innovation becomes a key
competition criterion. Organizations that embrace and develop their own capabilities
derive a distinctive competitive edge as they develop firm specific, valuable
capabilities, since they are of a tacit nature, and this makes them difficult to transfer
or imitate (Dosi et al 2000). Such organizational capabilities could enable ZPC deliver
its mandate under the ZimAsset national energy strategy.
Dimensions of Organizational Capabilities
Ulrich and Lake (1991) posit that organizations traditionally focused on financial,
technological and strategic capabilities to gain competitive advantage. However, the
new dimensions of organizational capability are those strategic strengths and
weaknesses that exist in different parts of the organization’s functional areas.
Smallwood and Ulrich (2004) posit that there is no magical list of organizational
capabilities that apply in every organization. However, studies conducted on
organizational capabilities have come up with different sets of capabilities necessary
to improve and sustain performance in different organizations (Roghe et al 2012). In
this regard, an organization may only excel in only a few of these various
capabilities, while maintaining industry parity in others (Smallwood and Ulrich,
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2004). This is because an organization can only possess organization capabilities
based on its available resources, competences and process routines which are in line
with the attainment of its objectives. This study focused on the following six
organizational capability factors which were considered to be relevant to the
Zimbabwe Power Company: Internal control systems, technical, financial, human
capital, deployment of resources, and internal architecture.
Theories of organizational capabilities
The appropriate theories for this study are the Resource Base View and the Dynamic
View theories. These theories basic tenets are resources and capabilities which better
explain the interactions of resources and capabilities in organizations for competitive
advantage. The Resource-based view (RBV) of the firm, named as such by
Wernerfelt in his 1984 article ‘A Resource-based view of the firm’, can be traced back
to a number of earlier scholars. The first formulation of the resource based view was
done by Barney's (1991) paper and was based on many previous scholars’ works
such as Penrose (1959). Penrose, in her book, ‘The Theory of the Growth of the Firm’,
provided the intellectual foundations for the modern Resource-based theory of the
firm (Rugman et al 2002). They suggested that the prescriptive building blocks in the
majority of post 1980 academic work on the resource based approach recognise more
or less the following attributes; that the firm‘s ultimate objective in a resource based
approach is to achieve sustained above normal returns as compared to rivals; that a
set of resources, not equally available to all firms, and their combination into
competences and capabilities, are a precondition for sustained superior returns; that
competences and capabilities lead to sustained superior returns, to the extent that
they are valuable to the customers, rare in the industry, inimitable and non-
substitutable; that from a dynamic perspective, innovations, especially in terms of
new resource combinations can substantially contribute to sustainable superior
returns. The firm’s resources and capabilities together form its distinctive
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competences, using resources and capabilities to achieve lower cost structure or
differentiated structure creates a competitive advantage and value (Barney, 2001).
In their critique, Priem and Butler, (2001) draw the attention to problematical aspects
which apply to the bulk of the resource-based literature, that is, the static approach
of the resource based view. They said that the resource based view offers the
following sequence of static arguments: First, a theoretical statement that some
resource can produce competitive advantage, is presented. Then the heterogeneity
and, therefore, rarity of that resource are established. Next, resource value is
demonstrated by asserting that the resource can produce competitive advantage.
Finally, isolating mechanisms are confirmed, making resource replication difficult
and thereby suggesting that the advantage may be sustainable. Priem and Butler
went on to say that a static approach of this kind has the disadvantage that the view
is too descriptive and has little operational validity if the independent variables
cannot be manipulated; at the same time, resources are argued to be valuable ex
post. Their conclusion is that this therefore remains at a highly abstract level of
analysis ( Priem et al, 2001).
Several authors such as Eisenhardt et al (2000, 2001); Teece et al (1994, 1997) and
Rindova and Kotha (2001) have taken the challenge to further improve the concept
of RBV in rapid and changing environments and built a solid theoretical foundation
around it. Teece et al. (1997) defined dynamic capabilities as an organization’s ability
to integrate, build, and reconfigure internal and external competences to address
rapidly changing environments. Furthermore, Zahra and Gerard (2002) suggest that
dynamic capabilities are essentially change oriented capabilities that redeploy and
reconfigure resources. Various authors noted that besides the bundles of
organisational resources, an organisation also requires mechanisms to learn and
accumulate new skills and capabilities. Thus an organisation’s ability to manipulate
its capabilities and resources and its ability to adapt to changes or create changes fast
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and effectively contributes to that organisation’s competitive advantage, growth,
and survival (Teece et al., 1997; Eisenhardt and Martin, 2000; Helfat, 2007). This
means that ZPC needs to sharpen its dynamic capabilities. Challenges such as
changes in climatic conditions, changes in policy, changes in local regulations and in
foreign markets and changes in technology mean that ZPC must adapt to the fast
changing local and global environment in order to be competitive or meet its
mandate.
METHODOLOGY
The research followed a pragmatic method (Johnson and Onwuebuzie, 2007)
involving qualitative and quantitative research techniques. The aim was to take
advantage of each data collection method and minimise any potential weakneses in
each data collection method (Saunders et al 2009). The qualitative approch involved
observations and documentary anaysis of ZPC as a case study (Flick, 2014). It also
involved understanding ZPC’S organizational capabilities for executing the Zim
Asset energy strategy as well as the organizational processes, structures and culture.
The main purpose being to get the a deeper understanding of ZPC so as to be able to
explain the organizational capabilities at ZPC. The quantitative research approach
involving a survey and statisical data analysis were used in this study to evaluate
identified elements of organisational capabilities of ZPC to execute the ZimAsset
energy strategy (Johnson et al, 2007) These techniques were also used to explain the
embeddeness of the organizational capabilities and the basis of enablers for a model
of organizational capabilities.
However,the target population was identified as all those in management, 175,
chosen because they are the key decision makers in ZPC and are responsible for
strategy implementation and have information about ZPC’S capabilities( Grant and
Verona, 2015). Management had the added advantage that they were in a position to
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offer information that would not be revealed by others or could tell of incidents,
local happenings, or conditions that explain ZPC strategy implementation
problems.The research adopted a stratified sampling because it is a technique which
attempts to restrict the possible samples by ensuring that all parts or classes of the
population are represented in the sample in order to increase the efficiency (
Zikmund et al, 2009). In this case, the targeted population was first divided into
separate groups of general managers, operating managers, engineering managers,
principle engineers and engineers units respectively. From each stratum a sample of
pre-specified size, was drawn independently in different strata using different
probability and non probability methods. Convenience and purposive sampling was
used to select members of senior management in different stratas (Saunders et al,
2012), while a systematic random sampling method, in which the sample is obtained
by selecting every kth element of the population, where k is an integer > 1 and the
units are ordered with respect to that auxiliary data (Saunders et al, 2012) was
applied in lower level management eployees strata.
RESULTS AND DISCUSSIONS
Demographics N= 63
Characteristic Class N Frequency
%
Gender Male 40 63.5
Female 23 36.5
Age
Male 28 44.4
30 – 40
Female 14 22.2
Male 7 11.1
41 – 50
Female 4 6.3
Male 5
7.9
Female 51 – 60 5
7.9
Highest Academic Degree 47 74.6
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Qualification Masters 13 20.6

PhD 3 4.8
Length of service 0 to 5 years 26 41.3
5 to 10 years 28 44.4
Over 10 years 9 14.3
There were 40 (63.5%) males and 23 (36.5%) females among the respondents in this
research It is a Zimbabwean Government policy that technical organisations like
ZPC give equal opportunities to all gender, creating gender balance in the work
environment. However, in technical disciplines this representation can be considered
fair as gender balance has still along way to go. Internationaly some governments
such as the Australian Government (2013) have highlight the need to incorporate
women in the working environment.
The results also show that management aged (30-40 years) at ZPC constitutes a
significantly high number and posses technical degrees giving them abilities to
understanding current technologies and knowledge to implement ZimAsset energy
strategy. In general the ZPC has a large pool of highly qualified employees.
Organizational Capabilities at ZPC to implement the ZimAsset energy strategy.
ZPC’s ability to execute the ZimAsset strategy is influenced by its organizational
capabilities (Pearce and Robinson, 2015). This study sought to collect empirical
evidence on ZPC’s organizational capabilities and capacity to support the new
strategy execution. The analysis below shows a snap shot of views on the six main
organisational capabilities involved in delivering organisational effectiveness at
ZPC.
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Table 2 Organizational Capabilities at ZPC.
Key: 1= Strongly Disagree 2= Disagree 3 = Undecided, 4 =Agree, 5 Strongly Agree
N=63
Frequency %
Organizational Capabilities in ZPC 1 2 3 4 5
B1. Internal Control Systems Capability 6.35 9.52 3.18 52.38 28.57
B2. Technical Competences Capability 0.0 9.52 23.81 47.62 19.05
B3. Human Capital Capability 0.0 4.76 26.98 46.03 22.23
B4.Financial Management Capability 22.22 19.05 9.52 30.16 19.05
B5.Workforce Deployment of Assets 0.0 6.35 26.96 44.44 22.22
Capability
B6. Effective utilisation of Resources 0.0 11.12 20.63 57.14 11.11
Capability
Table 2 B1, Internal control systems; shows that 80% of the respondents agreed that
there is adequate internal control systems capability at ZPC to excute the Zimasset
strategy. The major contributory factor to high percentages of respondents agreeing
to this capability is due to the set of rules, policies, and procedures that the ZPC
practices in its business. The ZPC rules, policies and procedures have provided
reasonable assurance and trust since business operations are effective, efficient and
of high quality as evidenced by certification of all ZPC power stations including the
head office with quality management systems certifications (ISO 9001:2008) from
international organisation of standards through standards association of Zimbabwe.
The capability in rules, policies and procedures is supported by the Process Renewal
Consulting Group, Canada, qouted in Burlton(2006), who argue that business rules
and techniques for process execution can be categorized as organizational capability.
B2 Technical competency capability; shows that 67% of the respondents agreed that
the ZPC has technical competence capabilities while 24% of the respondents were
undecided and about 9% disagreed.The greatest contributory factor to the high
positive percentage of respondents agreeing to this capability is due to technological
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collaborations that ZPC does with other countries in the Southern Africa Power Pool
(SAPP). ZPC is a member of SAPP and shares power network grids with other
countries. For example, ZESCO (Zambia) can obtain electricty from South Africa via
Zimbabwean network. This collaboration has resulted in technological and
capability transfers between the SAPP members and inductively technological
capability development at ZPC through learning from the SAPP
network(Schienstock, 2009). ZPC has also extensively made use of consultants from
WAPCOS India, who were engaged through Government of Zimbabwe and India to
assist ZPC in technical related issues. These collaborations and networks have
assisted ZPC to effectively create modifications to some generating plant and
equipment involving new generating technology especilly at Hwange (heat
exchange systems), Munyati and Harare (chain grate systems) using more efficient
systems that comply with local conditions. Rush et al, (2005) in Schienstock (2009)
have indicated that acquisition of technology through collaboration or alliances or
implementation and absorption of technology within an organization constitute
forms of organiztional capabilities. This shows that the ZPC has some technological
capabilities.
B3 Human capital capability; indicates that ZPC has sufficient human capital
capability at 68% positive rating. Factors that support this finding include the
implementation of the Result Based Management system which has endevoured to
align employee skills, their abilities and knowledge to the results that ZPC
endevours to achieve. This has seen ZPC restructuring some of the departments at
power stations as well as rotating general managers from different power stations
inorder to align them with their skills and work demands for each power station.
ZPC has also promoted those that have upgraded their skills and educational
qualifications through promotions and being given more responsibilities. On a
monthly basis ZPC also awards employees who bring innovatitive ideas for that
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month. Armstrong, (2009) argues that reward systems in organisations affect the
development of organisational capabilities. The aspect of individual knowledge and
competency is also recognised as a key pillar by Gill and Delahave (2004) in their
model of organisation capability and clearly indicate that individual knowledge,
skills and competences are important in developing organisational capababilities
B4.Financial management capabilities received a mixed response with 50.79%
disagreeing or not sure and 49.21% agreeing that financial capabilities exist in the
organization. The major contributory factor to the mixed feelings is, among others,
due to the difficulties the ZPC is facing in accessing financial resources. The ZPC has
failed timeously to secure financial resources closure required to implement projects.
The ability to deploy varoius capabilities depends on financial capability, therefore
the absence of fincial capacity inhibits a proactive approach to startegy
implementation efforts. These findings are in agreement with Van Home and
Wachowicz, (2008) who defined financial resources as those concerned with the
acquisition, financing, and management of assets with some overall goal in mind.
According to ACCA, (2013), effective financial resources capabilities come in the
form of an organisation being able to raise finances, managing cash flows and
keeping records. The ZPC currently has limited capability in this respect.
B5 Workforce deployment of assets, that is, ZPC’s cocktail of abilities, expertise and
skills of its workforce that enables it to deploy its assets , tangible or intangible to
perform given tasks.The majority, 66.66% of the respondence agreed that the ZPC
has the requisite workforce deployment of assets capabilities while 28.98% were
undecided and 6.35% disagreed. This finding is supported by the ability that the
ZPC has in outsourcing the special skills they require to complement its worforce.
For example, when the ZPC realised that they did not have the required expertise in
hydropower contruction, they hired out proffessional services of consultants from
China, who worked together with the ZPC workforce to implement the Kariba South
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extension project. This complemeted the skills as well as resulted in skills transfers
within the ZPC employees. The combination of people skills and knowledge,
relationships between people and organization processes and aligning them together
is central to embbeding organizational capability (Haertsch, 2003). Therefore the
ZPC has a base to create a model of organizational capability.
B6 Effective utilization of resources capability. The ZPC effectively utilises people
and material resources inside and outside of the organisation as supported by
68.25% respondents, who said that there was effective utilisation of people and
resources while 20.63% were undecided and 11.11% disagreed. ZPC is successfully
managing old and time expired plant and equipment operational and collaborates
successfully with SAP systems within the country and the region. The SAP system
enables effective management of the organisations’ inventory and stock levels and
also identifies areas where resources are being abused for example fuel, stationary
and spare parts which are constantly being replaced. This shows tha the ZPC has
the technical and functional capabillities which enable the company to collaborate
with the regional electricty organizations. Such integrative organizational
capabilities will enable ZPC to cope successfully with organizational flexibility and
efficiency (Scienstock, 2009). Accordingly, the basis of organisational capabilities is
seen in ZPC’s ability to utilise its bundle of resources within the country and the
region. Organisations that effectively utilise a firm’s physical, human, and
organisational capital have the domains of organizational capabilities (Gill and
Delahaye, 2004).
Futher, the results B.1 to B.6 above were scaled in order to highlight the extent of
existance of each capability at ZPC so as to facilitate the drawing of logical and
objective conclusions about the state of embeddedness of the organisational
capabilities at ZPC. The study used the ideas from the Australian Public Service
Commission’s (2011) continuum measurements work on developing capabilities in
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public organisations. The continuum measurements focused on developing
capabilities through the measurement and systematic review of those capabilities to
provide a forward-looking, high-level and impartial assessment of each capability
and a baseline against which one can measure the capability strengths and identify
areas for development.
Table 3. below shows the organisational capabilities measurement continuum table.
Table 3: Organisational capabilities measurement continuum
Capability Capability level description Disagreement
Level %ge range
Level 1 The capability is embedded in the organisations 0-10%
culture. There is continuous evaluation, review and
readjustment using suitable benefits
Level 2 The capability is linked with other strategies to drive 11-30%
business outcomes and frequent consultations are
made with stakeholders and key experts in delivering
service and reviewing outcomes
Level 3 Standard methodologies and proccsses are in place to 31-50%
build the capability
Level 4 General acceptance across the organisation that this 51-65%
capability needs to be developed
Level 5 Recognition by the organisation that this capability is ≥66%
important but the organisation does not have processes
to activate it.
Source: APSC, 2013
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With reference to the above organizational capability measurement continuum, Table 4
below depicts the output of organizational capabilities at ZPC measured against table 3
above.
Table 4. Organizational Capabilities at ZPC measured against the measurement
continuum
Capability Disagreement Capability score Continuum level
Range
Internal control 11-30% 2 2
systems
Technical 31-50% 3 3
competences
Human capital 31-50% 3 3
Financial 31-50% 3 3
management
Workforce 11-30% 2 2
capabilities
Resources utilisation 11-30% 2 2
Table 4. above shows that the capabilities at ZPC are not yet fully embedded but
there are key experts who can deliver the service and provide outcomes. The results
also mean that methodologies and processes are in place at ZPC to build the
capabilities further.
Inorder to further confirm the existence of organizatiional capabilitities in ZPC, Gill
and Delahaye (2004) domains of organizational capability enablers were tested
represented by human resource capital, knowledge networks and workforce
abilities. A chi-squared goodness of fit test was conducted at 5% level of significance
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for the three equivalent domains highlighted in Gill and Delahaye (2004) model of
organisational capability.
Hypothesis testing for human resource capability, knowledge networks, and workforce
abilities.
H0: Human resource capability, knowledge networks and workforce abilities
are not related
H1: Human resource capability, knowledge networks and workforce abilities
are related
Results at 5% level of significance are shown below on table 5:
Table 5: Human resource capability, knowledge networks and workforce abilities
Goodness of Fit Test results
Value Df Assym Sig
(2 sided)
Pearson Chi- square 43.046 12 .000
Likelyhood ratio 41.144 12 .000
Linear-by-Linear Association 17.932 1 .000
N of Valid Cases 63
Source: Research data, 2016
Since χ2crit = 21.026 < χ2calc = 43.046, Reject H0 and conclude that Human resource
capability, knowledge networks and workforce abilities are related. Since these three
domains are related, the implication is that ZPC has a basis for a model of
organizational capabilities and is able to accrue some benefits (Gill an Delahaye,
2004). The result also means that ZPC posseses a baisis of organizational capabilities
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for competitive advantage and a reduced business risk environment.This is because
the job contexts, knowledge and organisational systems can be aligned easily to
develop an appropriate depth of human based organisational capabilities required
by ZPC (Burlton, 2006). The result also signify that ZPC is better placed to make
organisational human resources changes such as organisational restructuring when
the three domains are well aligned. Hence, it is easy to modify the alignment of
existing processes and systems (Gill and Delahaye,2004)
In order to establish the correlation between human resource capability, knowledge
networks and workforce abilities a multiple linear regression analysis was
conducted.
Table 6: Multiple Linear Regression Analysis; Human resource capability,
knowledge networks and workforce abilities results
Value Assymp Approx. Approx. Sig
Std Tb
Errora
Interval by interval Pearson’s R .796 .135 5.035 .000
N of Valid Cases 63
The R squared value of 0.796 was obtained and the result suggests a very strong
positive correlation among human resource capability, knowledge networks and
workforce abilities at ZPC. This is consistant with a basic Gill and Delaheye’s (2004)
model of organisational capabilities. This means that the ZPC has an organizational
capability framework that can be used to develop enabling systems and processes to
execute the ZimAsset strategy.
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CONCLUSIONS
The study concludes that basic organizational capabilities to execute the Zimasset
startegy exist at ZPC although these are not yet fully embedded. Human capital and
knowledge networks exist such that we can conlude that the organizational context
is able to alter over time, strategic processes and the behaviours and actions of
employees to influence organizational effectiveness (Bartlet and Ghoshal,1994). Gill
and Delahaye (2004) argue that organizational capabilities are built on three
domains, strategic intent domain, organization structure domain and individual
knowledge domain. They further state that the strategic intent domain clearly
defines capabilities of the workforce or inform organizational processes and future
direction; the organizational sructure domain reflects traditional human resources
practices such as performance mangement and the individual kowledge domain
identifies knowledge, skills and abilites to support current job context in the
organization and future innovations. Hence there are sufficient organizational
systems, knowledge networks and job context enablers identified in ZPC to create a
credible base for an organaizational capability model (Gill and Delahaye, 2004). This
will be crucial for ZPC’s success in executing the ZimAsset strategy as these
capabilities are developed over time. More importantly, ZPC’s organizational staff,
right from the managers to the lower level staff, have a greater role to play in
combining the resources available to gain a competitive advantage (Ljungquist,
2008). However, ZPC lacks the financial capability to execute the Zimasset strategy
as it depends on Government and International support for its projects as a
parastatal body. ZPC’s financial capabilities are negatively influenced by its inability
to convince investors to independently raise counterpart funding on the open
market and through its limited capabilities in the essential financial management
systems. Hewever, there is a huge potential for ZPC to put in place systems and
processes that strengthen this capability and enhance its development.
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RECOMMENDATIONS
The study was able to clearly demonstrate and identify a sufficient core of enablers
for building on and emmbedding organizational capabilities at ZPC. In order to
deliver high quality government policy programs and services, such as the ZimAsset
energy strategy, ZPC is encouraged to build on the enablers of organizational
systems, knowledge networks and job contexts to ensure a robust model of
organizational capabilities in the organization. This meams that ZPC needs to
continually institute performance management systems, train and develop key staff
to maitain core competences as well as continually review human capital policies
and reward systems.
The study demonstrated that ZPC’s internal competencies are critical in determining
and enhancing the performance of the company, and therefore, it is recommended
that ZPC focus on its internal resources and to configure these to generates
maximum benefits. The ZPC’s financial capabilities need to be aligned in a manner
that will be able to effectively identify and harness its strategic capabilities. The
government should consider capitalising ZPC through private equity to improve
ZPC’s balance sheet position and investment opportunities. The Ministry of’ Energy
and Power Develpment should improve governance stability by timely replacement
of board members and by adopting the recommendations of the ZIMCODE on
oversight roles of board members.
It is further recommended that the curriculum of academic insttutions should
include aspects of power development and technological innovations. This will
equip such technological organizations with the necessary skills required to upgrade
their technologies, processes and operations of power development. This could be
done through introduction of higher tertiary degree programs in technological
universities.
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The Zimbabwe Power Company's Organizational Capabilities for

Ganyanhewe Gabriel Masanga

Management View project

The user has requested enhancement of the downloaded file.

AFRICA DEVELOPMENT AND RESOURCES RESEARCH INSTITUTE (ADRRI) JOURNAL

ADRRI JOURNALS (www.adrri.org)

Ganyanhewe Gabriel Masanga1 and Kudzanai Samusodza2

Chinhoyi University of Technology, Chinhoyi, Zimbabwe.

Available Online: 30th April, 2018

Keywords: Strategy, Organisational Capabilities, Socio-Economic Transformation, Energy Demand

Zimbabwe is grappled with severe electrical power shortages resulting in severe

their operational capacities severely curtailed. The Government of Zimbabwe

through the Zimbabwe Agenda for Sustainable Socio-Economic Transformation

anchored on indigenization, empowerment and employment creation; largely

generation capacities; expansion of existing power stations such as Hwange and

Gairezi respectively; resuscitating small thermal power stations of Harare, Bulawayo

there are sufficient organizational capabilities in the organization to implement the

strategy. However, energy demand and related organizational capabilities to

parts and components, performance of associated services (production and project

execution capabilities), knowledge creation and research and development potential

(or innovation capabilities). Similarly, in Malaysia, Hansen (2013) carried out

research on Malaysia’s local learning and technological capabilities to build a

biomass power industry. In the study, the aspects investigated included

manufacturing processes and capabilities to manufacture parts, components,

learning and technological appreciation capabilities (knowledge creation, research

and development potential and innovation capabilities). Hansen, concluded that

significant advances in technological capability developments in some of the firms

delivering domestic energy demands by the Electricity Supply Commission

affecting the capabilities of the subsidiary. In Zimbabwe, the Zimbabwe Electricity

significant additional power in Zimbabwe, for example, the Batoka Gorge

in supplying sufficient power or to make a meaningful contribution towards

adequate power supplies in Zimbabwe. The provision of power is an essential

ingredient of socio-economic development. The lack of sufficient power in

ZPC’s available capabilities. Organizational capabilities have been known to provide

to achieve. The role of managers in influencing performance is acknowledged in

literature (Lawler, 1992). However, Maister (2001) cautions against management’s

at the expense of ensuring that the strategy is successfully implemented. Strategy

implementation is particularly dependent on the organizational processes,

major inimitable component of a company’s resources. ZPC’s ability to develop and

deploy resources to execute the strategy is influenced by its organizational

collect empirical evidence that lends support to ZPC organizational capabilities to

evaluate the organizational capabilities at ZPC to execute the ZimAsset strategic

national energy plan.

The key questions to be addressed are as follows:

(b) Are these organizational capabilities, if any, embedded?

organization enablers to execute the national energy strategy?

The Zimasset economic blue print is being implemented in an environment when

many Zimbabwean technocrats have found the economic environment in Zimbabwe

the organizational capabilities at ZPC for the purposes of influencing positive

performance at the organization during the implementation of the national energy

sector strategy. Successful execution of the national energy strategy could

significantly stimulate economic development in Zimbabwe. High energy

consuming companies that have been closed could resume production if

uninterrupted energy is guaranteed.

What Organizational Capabilities are.

Literature has no agreed definition yet of organizational capabilities. However, it is

(WCL, 2006) or alternatively the ability to effectively meet business objectives

organisational capabilities characteristics as a cocktail of the abilities, expertise and

within that organisation.

However, Barney’s (2002) definition seems to be unconscious of the current reality

the goal for the coordination of resources. Alternatively, organisational capabilities

have been defined as an organisation’s capacity to deploy its assets, tangible or