Abstract
Knowledge exchange and ethnic networks of clustered small-scale enterprises in Africa: A case study of furniture cluster in Tanzania
Highlights
The informal economy contributes to about 40% of gross domestic product (GDP) and created more than 70% of employment in the sub-Saharan Africa (SSA) region (International Labour Office [ILO] 2013; Schneider & Enste 2000; The World Bank 2004)
This study examines the ethnic networking effect on technology adoption of clustered producers in SSA
Results imply that ethnic network is a predictor of technological skills of clustered producers in the region
Summary
The informal economy contributes to about 40% of gross domestic product (GDP) and created more than 70% of employment in the sub-Saharan Africa (SSA) region (International Labour Office [ILO] 2013; Schneider & Enste 2000; The World Bank 2004). Social capital and innovation system are the two important factors affecting regional development (Braczyk, Cooke & Heidenreich 1998; Fukuyama 1995). These two seemingly parallel factors are intertwined in cluster development. Industrial clusters remain at the initial stage in the sub-Saharan Africa (SSA) region. They produce low-quality and similar products that are poorly innovative and unable to expand. Little research has been done on SSA industrial clusters being able to explore ethnic effects on cluster development, in particular the cases where ethnic majority is over-presented
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