Paper info

NETWORKS, RELATIONSHIPS, AND PERFORMANCE OF SMALLAND MEDIUM ENTERPRISES IN THE SHIPPING SUB-SECTOR INTANZANIA

Deogratius B. Mukasa, Jan-Erik Jaensson and Lettice K. Rutashobya

The paper was published at the 21st IMP-conference in Rotterdam, Netherlands in 2005.

Integrating the entrepreneurship, networks, social capital and the IMP (interaction) perspectivesthis paper draws on data from 69 local and foreign owned-companies in the shipping sub-sectorin Tanzania to investigate firms’ involvement in network relationships, and subsequent effects onperformance. Existing literature suggests relationship between entrepreneurial networks and firmcompetitiveness and survival. Findings of the study reveal sparse use of linkages especiallyamong locally owned shipping firms in Tanzania. Mutual trust (social capital) rather than contractswas paramount both in establishing and holding the inter-firm relationships. Consistent with thetheory, an association between networks and financial performance was revealed, suggesting theneed for business development support initiatives and capacity building to emphasize networkingas a strategy.