Abstract:
This study was designed to assess the factors affecting competitive advantage of SIDO
supported small- scale furniture industries in Dar es Salaam and Arusha cities of Tanzania.
Primary and secondary data for the study were collected from furniture manufacturers and
importers in the study area. A total of 127 manufacturers were surveyed, of which 79 were from
Dar es Salaam and 48 from Arusha. Data were collected using questionnaires, focus group
discussions and documentary reviews. Both qualitative and quantitative methods were used in
the analysis of the data. The findings of the regression analysis tested at p<0.05 showed that
age of the firm, initial capital, number of employees, price, location, diversification and
networking significantly affected competitiveness of the SIDO supported small scale furniture
industries. The recommendations emanating from the study are that the industries should
allocate sufficient start-up capital, hire adequate number of employees and ensure effective
utilization of employees for improved operational performance of the enterprises as well as
ensure effective utilization of networking potentials for resource sharing and market access.
