Institutional Factors Influencing the Service Provision of Mobile Network Operators (MNOs) in Zimbabwe

Abstract

There is a lot of literature on telecommunications, but most of it covers telecommunications companies established in foreign countries. That literature has documented experiences of Foreign Direct Investment (FDI) companies operating in foreign lands. Of course, these companies must meet certain requirements to establish themselves in those countries. Available literature on these FDI telecommunications firms has found politics, regulations, corruption, cultural and some operational factors. Other than that, these FDI MNOs operate in the same environment as local MNOs and yet very little is known about telecommunications companies operating in the domestic market. This thesis, using the lens of institutional theory, addresses the influence of institutional factors on MNOs in the domestic market of Zimbabwe, a developing country in Africa. This research adopts a case qualitative study with thirteen in-depth interviews and archival documents from International Telecommunications Union (ITU), Global System for Mobile Communications Association (GSMA), Post and Telecommunications Regulatory Agency of Zimbabwe (POTRAZ). These documents together with interviews were studied and triangulated. Regarding formal institutions, this study has found the influences of politicians, regulatory agencies, POTRAZ and the Reserve Bank of Zimbabwe. Informal institutions, the community, and infrastructural challenges have influenced the services offered by MNOs in Zimbabwe. This thesis contributes a significant understanding of how institutional factors influence the service provided by MNOs in Zimbabwe. This study has shown how formal institutions, in this case, politics and regulations together with informal institutions, communities affect the operations of MNOs in the country. Politicians, regulators solicit for favours (through bribery and nepotism) from MNOs who must oblige, to remain in business. On the other hand, informal institutions influence the operations of MNOs by destroying or stealing infrastructural components have had communities destroy infrastructure leading to disruption and unavailability of mobile services. This study also contributes to institutional theory literature, by addressing the African view of looking at formal and informal institutions. This study finds that in the African perspective, the two, formal and informal co-exist, but their influence on the service of MNOs is independent of each other. This study further contributes to institutional theory, the African perspective which appears to be lacking. The thesis also contributes to the application of institutional theory, the African perspective in management. The results of this study indicate that the Zimbabwe’s telecommunications regulatory body, POTRAZ needs to be revisited and updated accordingly.