Organisational Capabilities Influencing SMEs’ Export Performance in Tanzania

Abstract

Exports play an important role in economic growth as it leads to an increase in the country's economic performance through various sectors including small and medium enterprises. As a result, enhancing export performance among small and medium enterprises is very important because of the key roles they play in the economy. The study examined the organization’s capabilities influencing SMEs’ export performance in Tanzania using the Resource-Based View Theory and Network Model of Internationalization. Data were collected from 70 exporting SMEs in Tanzania and analysed using multiple regression. The study revealed that SMEs’ innovation and product quality positively and significantly influence SMEs’ export performance in Tanzania, while business networks have an insignificant influence. The findings imply that innovation and product quality are important in influencing SME exports in Tanzania’s context. The findings indicate the need for SMEs in Tanzania to invest in innovation to have a competitive advantage in the export market, which will improve the quality of products produced, hence the increased performance of SMEs in the export market