The Impact Of The “Buy Zimbabwe”Campaign On Performances Of Zimbabwean Companies In The Retail Sector

Abstract

The majority of the Zimbabwean retail companies were in the collapsing mode as indicated by a

performance decline of more than 50% over the past ten years. This miserable predicament

necessitated the government to craft locally driven remedies, and one of them was the “Buy

Zimbabwe” campaign launched in 2011. This prompted the researcher to assess the impact of the

“Buy Zimbabwe” campaign on the performance of the Zimbabwean firms. The study objectives

were to establish the impact of “buy Zimbabwe” campaign on demand for local products and

factors affecting demand for local products. Furthermore to establish if a company participating in

the “buy Zimbabwe” campaign performs better than non participating firms. An earnings per

Share was used in the inter firm performance comparison between OK Zimbabwe and Powerspeed

Electrical. Both companies were picked in Harare Graniteside light industry since the field

research was done at their head offices. OK Zimbabwe stands in the place for companies that are

participa ting in the “Buy Zimbabwe” campaign and Powerspeed Electrical represents the

Zimbabwean firms that have not adopted the “Buy Zimbabwe” campaign. The descriptive research

design was employed, although the research was both quantitative and qualitative in na ture. A

combination of quantitative and qualitative approach was employed to seek the performances

information from the sample population. Interviews were carried out with key informants in this

regard the managers of both companies. Different literature s were reviewed in order to get

informed view points of other authors and researchers about the impact of “buy local” campaigns

based on the study’s objectives and research questions. Other authors agreed that buy local

campaign contributes to company perf ormance intensively emphasis on sales revenue and output of

the company, while others argue against that they have insignificant effect. Primary sources such as

questionnaires and interviews in conjunction with secondary sources were employed in data

gathe ring. The study had a target population of 506 respondents which consisted of 500 consumers

and 3 managers for OK Zimbabwe, and only 3 managers of Powerspeed Electrical. The researcher

employed stratified sampling, purposive sampling and systematic samplin g to choose the companies

and respondents in this study. However, systematic sampling was utilized on sample size of 50

consumers. The response rates for customers and managers were 86%, 100% respectively and

tables, graphs and pie charts were used in data analysis and presentation. The classical linear

multiple regression analysis was used to establish and explain the relationship between company

performances from the period 2009 to 2014 using time series data for the selected macroeconomic

variables. The results indicated a weak linear relationship between “buy Zimbabwe” campaign and

company performance in case of OK Zimbabwe, whereas in case of Powerspeed Electrical there

was also weak linear relationship. The results indicates that, “buy Zimbabwe” campai gn has little

influence on company performances as the regression results indicate other factors that are

affecting company’s performances in the current operating environment. No much difference was

found between OK Zimbabwe and Powerspeed Electrical. The results also discloses that quality

and affordability of the product are the most influential factors affect demand for local products and

buy Zimbabwe campaign was regarded as the least factor to be considered by consumers. Results

from this study point towards the need to put in place supportive policies for the “buy Zimbabwe”

campaign to be effective. Also the Government should enact rules and regulations that represent

progressive vision and offer crucial incentives that promote local firms. The recomm endations can

help Zimbabwe to resuscitate the local industry and to become a middle class nation by 2025.