Footwear chain and participation of micro and small enterprises in Tanzania: What are their coping strategies?
Date
2005
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Enterprenuership and Bussiness Development Research Cluster
Abstract
The local footwear environment in Tanzania in which micro and small footwear enterprises are embedded influences the capacity of the firms to cope with the vagaries of liberalization and globalization. This paper has used value chain, clustering and firm level institutions theories to develop the conceptual frame which has examined this phenomena. An in-depth case study approach involving content analysis of six cases of micro and small enterprises was used as the methodology of study. The findings showed that micro and small footwear enterprises (MSEs) use a variety of strategies, including product differentiation, market diversification, market targeting, and product exporting (cross-border trade) as ways of dealing with imports of cheap second hand and new shoes in the local market. The study also showed that predisposing factors, particularly training and experience gained in the trade, played a vital role in influencing the enterprises strategic posture. On the other hand, the study showed that little clustering and cooperation existed amongst the footwear MSEs despite the potential advantages such as collective efficiency that could be gained, for example, from joint input procurement, joint selling and information sharing. Overall, the study showed that despite their disconnectedness, MSE in this sector have managed to survive and some have even grown.
Description
This book was sent to the DRPS for publication.
Keywords
Value chain, Predisposing factors, Local environment, Coping strategies, leather industries, footwear industries, Global value chain, Marketing strategies
Citation
APA