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Coping with the African Business Environment: Enterprise Strategy in Response to Institutional Uncertainty in Tanzania

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  • Michael W. Hansen
  • Thilde Langevang
  • Lettice Rutashobya
  • Goodluck Urassa

Abstract

Weak institutions, endemic market failures and low trust permeate the Tanzanian business environment. Nevertheless, some local enterprises overcome these challenges. Based on case studies of Tanzanian food processing enterprises, this paper identifies a number of coping strategies that contrasts markedly with the strategies traditionally emphasized by the strategic management literature: Instead of focus strategies, Tanzanian enterprises diversify; Instead of competitive strategies, Tanzanian enterprises adopt network strategies; And instead of internationalizing based on strengths, Tanzanian enterprises internationalize to overcome weaknesses. The paper traces these strategies back to specificities of the Tanzanian institutional environment and discusses implications for the strategic management literature.

Suggested Citation

  • Michael W. Hansen & Thilde Langevang & Lettice Rutashobya & Goodluck Urassa, 2018. "Coping with the African Business Environment: Enterprise Strategy in Response to Institutional Uncertainty in Tanzania," Journal of African Business, Taylor & Francis Journals, vol. 19(1), pages 1-26, January.
    • Handle: RePEc:taf:wjabxx:v:19:y:2018:i:1:p:1-26
    DOI: 10.1080/15228916.2017.1330028
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    References listed on IDEAS

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    1. Marcel Fafchamps, 2004. "Market Institutions in Sub-Saharan Africa: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062364, April.
    2. AfDB AfDB, . "Africa Competitiveness Report 2013," Africa Competitiveness Report, African Development Bank, number 456.
    3. Biggs, Tyler & Shah, Manju Kedia, 2006. "African small and medium enterprises, networks, and manufacturing performance," Policy Research Working Paper Series 3855, The World Bank.
    4. Wangwe, Samuel & Mmari, Donald & Aikaeli, Jehovanes & Rutatina, Neema & Mboghoina, Thadeus, 2014. "The performance of the manufacturing sector in Tanzania: Challenges and the way forward," WIDER Working Paper Series 085, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. Richard Adu-Gyamfi & John Kuada & Simplice A. Asongu, 2023. "An Integrative Framework for Formal and Informal Entrepreneurship Research in Africa," Journal of African Business, Taylor & Francis Journals, vol. 24(2), pages 167-187, April.
    2. Qamaruddin Maitlo & Frida Thomas Pacho & Jia Liu & Tahseen Ahmed Bhutto & Wang Xuhui, 2020. "The Role of Entrepreneurial Self-Efficacy in Resources Acquisition in a New Venture: The Mediating Role of Effectuation," SAGE Open, , vol. 10(4), pages 21582440209, October.
    3. Jheyce Milena Silva Barros & Brigitte Renata Bezerra Oliveira & Telma Lúcia Andrade Lima & Marcos Felipe Falcão Sobral, 2024. "Corporate strategy evaluation (CORE): a new method to measure strategies in organizations," SN Business & Economics, Springer, vol. 4(6), pages 1-18, June.
    4. Barnard, Helena & Mamabolo, Anastacia, 2022. "On religion as an institution in international business: Executives’ lived experience in four African countries," Journal of World Business, Elsevier, vol. 57(1).

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