THE INFLUENCE OF NETWORK CONFIGURATIONS IN ENHANCING SMES’ COMPETITIVENESS: EVIDENCES FROM BUILDING MATERIALS RETAILERS IN TANZANIA

Abstract

This paper aimed at investigating the influence of network configurations on the competitiveness of SMEs retailing building materials in Tanzania. The study used quantitative approach where a sample of 314 of SMEs selling building materials in Mbeya, Iringa and Njombe was used in collecting data. Using regression analysis results showed that network configuration is significant in enhancing the competitiveness of SMEs in Tanzania. This implies that network configurations are especially beneficial because they allow firms to access technical or commercial resources that they would otherwise lack. The study recommends that; the government’s role is to create enabling regulatory framework so that the networked SMEs can improve their competitiveness. In addition, the national SMEs policy has to include network configuration as a way toward strong organizational performance.