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Information flows and adaptation in Tanzanian cottage industries

Author

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  • Stein Kristiansen
  • Joseph Kimeme
  • Andrew Mbwambo
  • Fathul Wahid

Abstract

The aim of this research is to identify channels of information flows and their impact on business adaptation and survival. The analysis is set within a theoretical framework of information market failure and information flows. The paper draws on empirical data from a survey comprising approximately 400 small-scale entrepreneurs in dressmaking and woodworking industries at different levels of centrality in four regions in Tanzania. The data reveal that half of the businesses are growing and one-third have increased profitability by significant adaptations last year. Most changes occur in products and design. Customers and the media represent the most important sources of business information, followed by family members and business partners. Independent variables that significantly influence adaptability include customer relations, education, media exposure, social networks, and mobility. Associations are strongly modified by the entrepreneurs’ age and gender and by businesses’ size and location. The paper concludes that cottage industries in Tanzania have a remarkable ability to survive. Garment and woodwork markets are still predominantly local and competition from external businesses is limited. Access to business information and new ideas should be improved, however, to counteract growing competition from the modern sector.

Suggested Citation

  • Stein Kristiansen & Joseph Kimeme & Andrew Mbwambo & Fathul Wahid, 2005. "Information flows and adaptation in Tanzanian cottage industries," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 17(5), pages 365-388, September.
    • Handle: RePEc:taf:entreg:v:17:y:2005:i:5:p:365-388
    DOI: 10.1080/08985620500275547
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    Cited by:

    1. Yi Zhang & Patrick Sik-Wah Fong & Daniel Yamoah Agyemang, 2021. "What Should Be Focused on When Digital Transformation Hits Industries? Literature Review of Business Management Adaptability," Sustainability, MDPI, vol. 13(23), pages 1-30, December.
    2. Matthews, Russell S. & Chalmers, Dominic M. & Fraser, Simon S., 2018. "The intersection of entrepreneurship and selling: An interdisciplinary review, framework, and future research agenda," Journal of Business Venturing, Elsevier, vol. 33(6), pages 691-719.
    3. Luiz Antonio de Camargo Guerrazzi & Fernando Antonio Ribeiro Serra & Manuel Portugal Ferreira & Vanessa Vasconcelos Scazziota, 2022. "Using Meta-Analytic Structural Equation Modelling to Advance Entrepreneurship Research: A Study on the Liabilities of Newness and Smallness," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 31(3), pages 603-631, November.
    4. Stein Kristiansen, 2007. "Entry Barriers in Rural Business," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 16(1), pages 53-76, March.
    5. Henrik Egbert & Gundula Fischer & Sebastian Bredl, 2011. "Different Background— Similar Strategies," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 20(2), pages 189-205, September.
    6. Maman Setiawan & Rina Indiastuti & Peggie Destevanie, 2014. "Information Technology and Competitiveness: Evidence from Micro, Small and Medium Enterprise Survey in Cimahi District, Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 201401, Department of Economics, Padjadjaran University, revised Feb 2014.

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