Resilience and Innovation as key drivers for Enterprise Development : A Research Study

Graduation Day!

On December 15, 2023, I was one of the graduates who where presented in a graduation ceremony at the 南非开普敦大学 from held in the Sarah Baartman Hall, under the Faculty of Commerce, Graduate School of Business - University of Cape Town , where I was conferred with a Master of Philosophy in Inclusive Innovation. What made this day particularly special was that my Husband McCloud Mungofa, PMP and our two daughters and our son were present in the hall witnessing this milestone that they too sacrificed for me to achieve.

My degree specialisation was influenced by my extensive work with Stimulus Africa , where I accumulated over a decade's worth of experience and expertise that informed my decision to pursue a master's degree that focused on enterprise innovation for private sector development. My thesis, titled "Micro-Enterprise Innovation in Zimbabwe’s Knowledge Economy: Navigating Contextual Barriers to Achieve Business Viability," delved into crucial aspects of entrepreneurship and innovation that are essential for enhancing productivity and fostering sustainable growth in emerging markets. Additionally, it underscored the pivotal attributes that entrepreneurs and business leaders need to embody in order to remain resilient and enable their enterprises to thrive within challenging contexts.

Thesis Overview

Within my thesis, I addressed the pertinent issue of survival for micro-enterprise firms in Zimbabwe, given the operating environment they find themselves in and highlighted the adaptive strategies they employ in the context of scarcity, a relevance heightened by the predominant nature of micro or informal enterprises in Zimbabwe's economy. Concepts such as national innovation systems, business ecosystems, business model adaptation, and collaborative bricolage were intricately woven into my exploration, providing a comprehensive understanding of how these micro-enterprises navigate their challenging operating environment and how they can navigate around it to achieve productivity.

The examination of enterprise structure, reliability of ecosystem members, and necessity within the context of co-creation and sustainability in emerging markets constituted a significant contribution to the research. My qualitative inquiry into how micro-enterprise firms leverage these factors offered valuable insights into the dynamics of business ecosystems in challenging environments.

The ambitious goal of establishing an optimal operating model aimed at fostering conditions of reciprocity and facilitating collaborative bricolage in business ecosystems, leveraging a trust economy and innovation systems reflected the practical orientation of my research toward creating sustainable and viable business environments in economically challenging contexts.

My research holds substantial potential to contribute to the understanding of innovative practices in micro-enterprises, particularly in knowledge services sectors, and may have implications for broader discussions on entrepreneurship resilience and innovation in such operating environments as we see in Zimbabwe.

In emerging markets where scarcity prevails, micro-enterprise firms often adopt unconventional strategies infused with innovation to fuel their efforts to attain viability. The challenging environment propels these micro-enterprises to form collectives or business hubs in both formal and informal structures, relying on business theories to organise effectively whilst appreciating the limitations of such theories in unusual contexts. It was demonstrated in the research study that in such environments, traditional business theories cannot be applied conventionally, but they can be adapted and utilised to innovate and create new processes.

The identified theories in this study, including national innovation systems and business ecosystems driving knowledge generation and sharing, are underpinned by the theories of business model adaptation and collaborative bricolage. Bricolage, typically seen as a behavioural trait or skill, allows entrepreneurs and innovators to operate in challenging environments by exhibiting adaptive competence in their approach, as observed in economies like Zimbabwe, where it is essential to be adaptive in a dynamic operating environment.

This study investigated the relationship among micro-enterprises in the knowledge services sector as they self-organise in identified business ecosystems that rely on collaboration to co-create, thereby improving on existing products and developing new products for the market. To determine if there is a link between co-creation and sustainability in such ecosystems, four overarching factors were considered: structure, trust, reliability, and necessity.

Structure pertains to how the enterprises organise themselves (ecosystems); ‘Trust’ refers to the depth of faith held among business hub or ecosystem members, considering reputational risk and general business ethics. Reliability included the quality, skills, and professionalism of each co-creator or collaborator when considering referring them and, necessity resulting from limited access to finance and the complexity of the operating environment which led to an exploration of the extent to which collaborative bricolage could be used to navigate around the contextual challenges towards viability and growth.

Through qualitative inquiry, this thesis explored how these factors are leveraged by micro-enterprise firms. The goal was to determine an optimal operating model that allows co-creating actors to minimise the impact of the volatile operating environment and reward participation proportionally to the costs they bear, fostering conditions of reciprocity and enabling collaborative bricolage in an ecosystem that leverages shared learning, innovation, partnership and and co-creation in a trust economy to ultimately achieve business viability and success.

Why an MPhil?

Embarking on a Master's in Philosophy at a prestigious African business school, with a specific focus on inclusive innovation to promote growth of micro small and medium enterprises (MSME's) through private sector development in Zimbabwe's dynamic economy, presented a unique and compelling opportunity for me in light of my work in this context. Furthermore, the study of Zimbabwe's economic landscape, which is characterised by scarcity and defies conventional economic theory and logic, provided an unparalleled environment for exploration and academic inquiry.

Studying philosophy in the context of business, particularly with an emphasis on inclusive innovation and private sector development, enabled a deep dive into the intricacies of Zimbabwe's economic challenges and the unconventional strategies adopted by businesses in the face of a dynamic policy and operating environment. The program offered a chance to understand and critically analyse the pragmatic and innovative approaches undertaken by enterprises, especially micro-enterprises, as they navigate the complexities of Zimbabwe's economic conditions. The pursuit of private sector development in such a context demands a nuanced understanding of the unique challenges and opportunities present for MSME's who are the greater part of the economy in Zimbabwe today.

This Master's in Philosophy provided the intellectual framework necessary to dissect and comprehend the unconventional practices observed in Zimbabwe's economy, offering insights that go beyond traditional business perspectives. Moreover, the emphasis on inclusivity and the use of innovation to achieve it underscores the importance of fostering creativity and adaptability in such a business environment. It also enabled the exploration of alternative theoretical frameworks and the development of innovative strategies for sustainable economic growth for MSME's in this context. I therefore had the opportunity to contribute meaningfully to the discourse on economic resilience, innovation, inclusivity and economic growth for MSME's in Zimbabwe.

Acknowledgements

I want to express my deep gratitude to my incredible family, whose unwavering support has been the foundation of my journey. My husband, McCloud Mungofa, PMP , stood by me during the late nights of research and writing, ensuring I had the fuel I needed with a never-empty coffee cup. He challenged me to push my boundaries and provided unwavering strength throughout, especially during times when I felt overwhelmed.

My children, Towera, Sibongile, and Chawanangwa, were amazing, granting me the time and space to focus on my research and writing without complaint, despite the demands it placed on our family life.

I owe a debt of gratitude to my parents, Advocate Vanani Simon Nyangulu and Nyepudzayi Mercy Nyangulu Dr. , the original champions of my story, who supported me with their wisdom and experience, from giving invaluable advice whenever I faced challenges to babysitting when the children were restless at weekends.

I am immensely grateful for the exceptional team and network of consultants and entrepreneurs that form the Stimulus Africa network, as well as the business owners who generously shared their experiences for my research. Among them, Terrence Mugova, MIFM , Simanga Madhlabuta , Deirdre Prickisie HBSc, MBA, PROSCI CM Marshall Mutsamwira , Gladys Kanyongo , Selina Zigomo Prickisie Marshal stand out as inspiring leaders whose insights enriched my work.

A special acknowledgment goes to my patient and insightful supervisor, Dr. Tarek E. Virani , and my peers who provided valuable feedback and encouragement. I must also mention my friend and fellow researcher, P Jawona , whose unwavering support willingness to share knowledge and insights and give encouragement was invaluable. I also want to recognise the support of my class-peer collaborator, Amantle Kanyuchi , her presence in our weekly zoom calls kept me motivated to keep writing.

A heartfelt thank you goes out to the Class of 2021, My Cousins, who provided constant encouragement and support. Special mention to Iris Nxumalo-De Smidt Lesley Donna Williams , Noor Jehan Docrat , Mark Heerden , Mpho Ntholeng, MPhil , Lauren Goetze , Talia Govender , Cliff Nkuna , Boineelo Khowe Este Buchholz , they along with the rest of the class we a constant source of inspiration.

Call to Action

Finally, I urge African writers and researchers to continue publishing their work, as their voices are crucial in shaping the continent's narrative. Additionally, I encourage You to read African writers and integrate their perspectives and research findings into your own work. It is essential to present an authentic African narrative to the world, whether in academia, professional practice, or any other literary endeavors.

KEY TERMS

Business Ecosystems - This refer to networks or groups of businesses that collaborate in a purposeful arrangement to create and share collective value for their customers. In a business ecosystem, the interconnectedness and collaboration between different entities (members), enable them to collectively deliver products or services that are more valuable than what each individual entity could achieve on its own. These ecosystems are characterised by mutual dependencies and interactions, where each member contributes to and benefits from the overall value creation. By leveraging the strengths, resources and networks of multiple businesses, business ecosystems can enhance innovation, efficiency, and competitiveness in delivering value to customers resulting in profitability.

Business Model Adaptation - This is a strategic process within a business whereby the leadership, typically the founder and management, actively aligns and adjusts the company's business model in response to changes in the operating environment. This process involves analysing shifts in market conditions, customer preferences, technological advancements, regulatory changes, or other relevant factors that impact the business. Based on this analysis, the company modifies its business model to better suit the evolving landscape, ensuring that it remains relevant, competitive, and capable of delivering value to its stakeholders. Business model adaptation is crucial for businesses to thrive in dynamic and uncertain environments, allowing them to capitalise on emerging opportunities and mitigate potential threats.

Collaborative Bricolage - Bricolage theory originated from Claude Lévi-Strauss, which denotes making do with available resources, the creation of something new from the limited resources available or by combining various limited resources. Bricolage has been interpreted in entrepreneurship studies with the extension of the concept resulting in Collaborative Bricolage. This mainly focuses on explaining how entrepreneurship emerges in economically depressed, or resource-poor contexts and how collaborative working of entrepreneurs in these contexts can enable them to be productive and achieve sustainability. The concept of making something out of nothing is the key driver of the theory. “Nothing” refers to under-utilised resources that can be recombined into productive resources. entrepreneurs that “make do by applying combinations of the resources at hand are able to identify new problems and innovate around new opportunities”. Bricoleurs view resource limitations as both a problem and an opportunity.

Enterprise Innovation - An enterprise encompasses a business entity and its value-creating processes. On the other hand, innovation entails the introduction of something novel, such as an idea leading to a new process, method, product, or service, which alters or enhances the business model of an enterprise. Enterprise Innovation, therefore, involves the deliberate strategic focus of business founders and management on generating innovative ideas and transforming them into viable business prospects, including new products or services. This necessitates the capacity to conceive, develop, deliver, and scale new products, services, processes, and business models to cater to customer needs.

Innovation Systems - Innovation systems emphasise that the exchange of technology and information among individuals, businesses, and organizations is essential for fostering innovation. These interactions are crucial for translating an idea into a tangible process, product, or service that can be introduced to the market. The system encompasses all the factors that shape the innovation process, including economic, social, political, organisational, institutional, and other relevant elements and players in the system that influence the creation, spread, and adoption of innovations.

MSME's - Micro, Small, and Medium Enterprises (MSMEs) are typically classified based on the number of employees and sometimes other factors like revenue or assets. These classifications help policymakers, researchers, and organisations better understand and support businesses based on their size and resource requirements. The definitions can vary by country and region, but a common classification based on employees is as follows:

1. Micro-enterprise: A company that employs fewer than 10 people.
2. Small enterprise: A company that employs between 10 and 49 people.
3. Medium enterprise: A company that employs between 50 and 249 people.

Reputational Risk - This refers to the potential threat or danger of damaging or losing a positive reputation or standing within a community or business network. It encompasses the risk of harm to a company's image, brand, or public perception, which can result in negative consequences such as loss of trust, customers, or business opportunities. Managing reputational risk involves strategies to protect and enhance a company's reputation, including proactive communication, ethical business practices, and crisis management planning.

Trust Economy - This refers to an environment where trust plays a central role in driving decisions regarding referrals, collaborations, or partnerships between enterprises. In this context, trust acts as a unit of measure or currency that influences the willingness of one enterprise to engage with another. Enterprises in the trust economy prioritise building and maintaining trust with their partners and stakeholders as a fundamental aspect of their business strategy. Trust is seen as essential for fostering successful relationships, enabling cooperation, and facilitating mutually beneficial interactions in the business ecosystem.

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