Tanzania Competitive Industries Workstream #2

PROJECT OVERVIEW

The scope of this work was to understand the importance of management practices for medium to large manufacturing firms and to compare Tanzanian firms to firms around the world. The focus was to better understand the type of support required for firms to upscale production, improve quality, and in many cases, prepare to become exporters.

This project aimed to tackle Tanzania’s challenges of:

• low productivity and export capacity in the private sector, particularly among medium and large[1] sized firms;
• fragmented and underdeveloped entrepreneurial ecosystems to encourage enterprises to enter, grow and expand their market reach.

The survey identified issues relating to production, management, technology, and quality of manufacturing industries whilst reviewing the role of management in accounting for variations in firms’ productivity, profitability, and employment. The results from this survey were used to provide some preliminary evidence on the cause of the difference in management practices in Tanzania.

Conducted by EDI, on behalf of a joint group from the London School of Economics and the World Bank Group, the survey involved tracking firms as well as an identified representative thereof, who were interviewed. The representative was a senior member of staff with sufficient knowledge of the firm but not so senior that they are out of touch with the day to day operations of the firm.  A minimum of 125 firms were surveyed across Tanzania. The survey tool involved qualitative aspects, coded to give quantitative results, and a quantitative section. A short eligibility questionnaire was conducted over the telephone or in person whilst the main survey tool was conducted in person.

The firm level survey collected data on the following outcomes:

• Firm and respondent characteristics;
• Management behaviour scores on a series of management practices;
• Reward and bonus structures for management and non-management;
• Management structure;
• Ownership.

PROJECT UPDATE

Data collection has been completed.

[1] For the purposes of this study medium and large sized firms were defined as having number of employees between 50 and 5,000.

Competitive Industries and Innovation Program, Tanzania – Competitive Industries Project web page: https://www.theciip.org/content/tanzania