Transaction costs embedded in internationalisation of the batik value chain: The case of batic producers and dealers in Dar es salaam
Date
2005
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Entrepreneurship and Business Development Research Cluster
Abstract
This research report took into account of the value chain of batik product value chain in Tanzania. The value chain investigation started from cotton harvesting, processing to marketing cotton in the domestic market and international market (cotton export). The cotton industry was the upstream (primary) activities of batik production including textile and importation of other batik processing chemicals. Upstream (secondary) batik value chain activities were mainly promotion, marketing and selling batik products internationally.
The main investigation was the study of the transaction costs encountered in the Batik value chain. The transaction costs of women entrepreneurs’ home market explained interaction with foreign partners. The home market is expected to have a continuous influence, even when the entrepreneurs’ business environment becomes global. Transaction costs and internationalization of batik fabric value chain in Tanzania was studied in this research to investigate the impact of domestic transaction costs in the domestic market on internationalization of the batik value chain. The study investigated the cause of uncertainties on entrepreneurs’ activities. The uncertainties emanated from taxation policies, lack transparency, credit policies, high input price, unreliable sources of raw materials, weak bonds among entrepreneurs, robbery, unfaithfulness of workers and weak business protection policies. Such uncertainties have resulted into high transaction costs, hence slow pace to internationalization of batik value chain as indigenous knowledge.
Description
This book was sent to DRPS for publication
Keywords
Transaction costs, Internationalization, Cross-border trade, Batik value chain, Cotton growers, Cotton buyers, Artisan Development Agency of Tanzania(ADAT)
Citation
APA