Joint Ventures for SMEs Competitiveness and Inclusive Growth: A Comparative Analysis of SMEs in Mbeya, Tanzania

Abstract

The inclusive growth of SMEs has recently gained much recognition from scholars and policymakers. However, the pertinent question is, what is the best approach toward SME growth? This article examines the effects of Joint Venture (JV) undertaking on SMEs’ competitiveness and inclusive growth in Tanzania’s business setting. 192 (87 JV firms and 105 sole proprietors) were sampled from Mbeya City, Tanzania using a stratified systematic sampling technique for analysis. Data was collected using the survey method. The effects of JV on the SMEs’ competitiveness and growth were established by the pattern of percentages and the level of significance (p-values) using the independent t-test. It was found that SMEs operating as JV were more competitive, with a higher ability to meet financial, cost, quality, innovation, time and market requirements compared to sole proprietors. Nevertheless, JV firms revealed higher significant growth indicators in terms of sales volume, profit margin, market share, number of employees, working assets, production volume and business diversification than sole proprietors. Limited financial resources, inadequate production facilities, limited experience, unfavourable trade laws and socio-cultural factors constrain SMEs from JV undertaking. To policymakers and scholars, this article highlights the role and the determinants of JV undertakings as an important approach toward improved SMEs’ competitiveness and inclusive growth. Keywords: Joint ventures, SMEs’ competitiveness, inclusive growth, Mbeya-Tanzania

The influence of sustainable supply chain management practices on financial sustainability of food processing SMEs

“…The research questionnaire for this study was designed with five constructs of SSCMPs derived from relevant literature (Dai et al , 2021; Abdallah & Al-ghwayeen, 2020; Allam et al , 2021; Israel, 2022b). The questionnaire aimed to gather information regarding the extent to which food processing SMEs adopt different forms of SSCMPs and their potential impact on the firms' financial sustainability.…”

“…Studies conducted by Mangla, Luthra, and Mishra (2018) and Mann and Kaurl (2020) have linked the challenges and shortcomings faced by food processing SMEs in achieving sustainable performance to factors such as low competitive advantages, limited market access, low productivity and financial constraints. Additionally, Hong, Zhang, and Ding (2018) and Israel (2022b) have highlighted intensive competition among supply chains, lengthy marketing and distribution channels and a lack of innovation culture as barriers to the effective operations and financial sustainability of food processing SMEs. Scholars have proposed various methods, approaches and strategies to enhance the operational and financial sustainability, growth and development of food processing SMEs.…”

A review on financial and non-financial measures of supply chain performance

“…Ramezankhani et al (2018), Anand and Grover (2015), Benzidia and Makaoui (2020) Competitive advantages Measures of SC's ability in meeting quality standards, cost, time, certifications, financial resources and commercialization of unique products and services. Moreira and Tjahjono (2016), Israel (2022b), Piotrowicz and Cuthbertson (2015) Delivery performance…”

“…Competitive advantages enhance the sustainability of the supply chain and the performance of business firms. Moreover, competitive advantages enhance firms' Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International ability along the supply chain in accessing market and trade opportunities for sustainable growth and development (Israel, 2022b;Huang et al, 2013).…”