Marketing Services and Export Performance of Tanzanian Handicrafts Operators: Moderating Effect of Export Incentives

Abstract

Purpose: The study adopted resource dependency theory and examined how home market export incentives moderate the nexus between marketing services and export performance of Tanzanian micro and small handicrafts enterprises (MSHEs). Design/Methodology/Approach: Descriptive cross-sectional research design was adopted, and data were gathered through key informant interview and survey questionnaire administered to 171 sampled MSHEs. Purposive and proportionate stratified sampling techniques were used. The moderating effect was tested by comparing Ordinary Least Square and Moderated Multiple Regression models. Findings: Findings indicate the existence of high market for handicrafts in African countries and fewer exports are available to USA and EU countries. It was further revealed that there is an expansion of handcrafts in foreign markets due to participation in trade fairs. A significant moderating effect of export incentives on marketing services and export performance of MSHEs was established. Research Limitation/Implications: The study focused on MSHEs exporting handicrafts in Dar es Salaam Tanzania, hence concentrated mainly on the 15 informal handicrafts markets in the city. Practical Implication: The knowledge advanced in this study will inform actors in the handicrafts industry that export incentives moderates the nexus between precise marketing strategies and export performance, thus MSHEs who make an effective combination of export incentives demonstrate superior performance in export markets. Social Implication: The knowledge contributed by this study will help policy-makers to review the existing export incentives, harmonise tax policies and programmes in a way that will help local handicrafts operators improve their export performance. Originality/Value: The uniqueness of this study lays in the handicrafts export framework for local handicrafts exporters. The study demonstrates the dependence on access to resources like export incentives among handicrafts operators. The study substantiates that if these resources are easily accessible in the home market, exporting MSHEs will be more likely to compete easily in foreign markets. This scenario substantiates the need for the Resource Dependence Theory (RDT).