Vol. 4, Issue 12, Part F (2018)

Abstract
The health of the banking industry is strongly dependent on the state of corporate governance in an economy. The adoption and enthronement of sound corporate governance principles and practices is important in ensuring bank organizational effectiveness at institutional, industry and inclusive levels. The Zimbabwean economy has experienced persistent indigenous bank failures allegedly due to internal corporate governance deficiencies during the period 2000-2015. The present study sets out to address two research concerns (1) to identify and discover Zimbabwean indigenous banks’ corporate governance irrationalities with regard to organizational effectiveness and, (2) to achieve regulation change through understanding and explaining the impacts of the adopted corporate governance principles and practices on organizational effectiveness. This research examines the corporate governance mechanisms of Zimbabwean indigenous banks and their impact on organizational effectiveness. The research adopts a methodological pluralism approach using the phenomenology and symbolic interactionism epistemological strands. These techniques were used in an effort to address the cardinal points of this research being to identify, discover, understand, explain, predict and recommend controls to the bank failures in light of internal corporate governance deficiencies phenomenon in Zimbabwe. Based on these cardinal points, this study offers a unique insight and constructionist inquiry into the multidimensional subject of corporate governance in banking sector in Zimbabwe for the period under study. The unique insight is proffered through the examination of internal corporate governance principles and practices of the Zimbabwean indigenous banks. The study found out that there is a significantly positive relationship between sound corporate governance and organizational effectiveness among indigenous banks in Zimbabwe. Internal corporate governance deficiencies were central to the persistent bank failures experienced in Zimbabwe during the period 2000-2015. This result is supported by the number of indigenous bank failures, the extent of non-performing loans, and the alleged malpractices among indigenous banks as compared to foreign-owned banks. The research therefore confirms the importance of sound corporate governance in ensuring institutional, industry, and inclusive effectiveness among indigenous banks in Zimbabwe.