Business Networking and Performance of Tanzanian Handicrafts Exporting Micro and Small Enterprises: The Moderating Effect of Home Market Export Incentives

Abstract

This study sought to determine the moderating effect of export incentives on the relationship between business networking and performance of handicrafts exporting Micro and Small Enterprises (MSEs) in Tanzania. The study is anchored on positivism approach. Descriptive and correlational research designs were adopted, and data were collected using 171 questionnaire copies and interviews with sampled owner-managers of handicrafts exporting MSEs in Dar es Salaam. Data were analysed by using descriptive and inferential statistical analysis. The moderating effect was tested by comparing the Ordinary Least Squares (OLS) and Moderated Multiple Regression (MMR) models. Findings indicated that the moderating effect of home market export incentives on business networking-performance relationship was found to be significant. Overall, the study concluded that with the inclusion of home market export incentives, business networking have strong impact on performance of handicrafts exporting MSEs. The study recommendations and policy implications include: initiation of campaigns to sensitize MSEs on the relevance and accessibility of export incentives, designing of new tax policies and programmes which will come up with a reduction in taxes related to export trade to enhance the performance of exporting MSEs in Tanzania. Findings of this study are of key interest to entrepreneurs in the handicrafts industry, regulatory agencies, specialized government agencies offering network support at all levels, policy makers, researchers and scholars with interests in international business and entrepreneurship development.