Quality Standards and Export Performance of Tanzania Food-Based Small and Medium Sized Enterprises: Conceptual Model Development

OMAR K MBURA

Abstract


Abstract
This paper seeks to determine a conceptual framework that could guide the examination of the influence of quality standards on export performance in Tanzania’s SMEs based on food industry. It is built on the premise that investment in the manufacturing and management of food products and its ensued processes that meet international standards have core contributions towards enhanced SMEs’ competitiveness in international markets. The paper specifically proposes a model to examine the influence of three constructs—food product quality, food quality management, and compliance costs—on export performance of SMEs. Through extensive review of empirical studies conducted in various parts of the globe and Tanzania, the paper provides guiding framework to determine the influence of various attributes within the three main constructs on export performance of SMEs. This is preceded by a theoretical perspective that stipulates the legal context on Tanzania food standards, particularly through the Fair Competition Act, No. 8 of 2003, and the Standards Act, No. 2 of 2009. Moreover, the study applies the enlightening theories of resource-based view (RBV), core competency theory, and quality attributes in the context of food-related SMEs competitiveness. Lastly, the paper recommends a conceptual framework to guide future researches in the area of quality standards and export performance of SMEs in the food industry in Tanzania.
Keywords: quality standards, international standards, export performance


Keywords


quality standards, international standards, export performance

Full Text:

PDF

References


References

Aaby, N. & S. Slater. (1989). Management Influences on Export Performance: A Review of the Empirical Literature 1978–88. International marketing Review. 6(4). American College of Gastroenterology (ACG). (2010). Nutrient Content and Related Claims: Evaluating the Regulatory Options. Report to the Australia New Zealand Food Authority.

Antle, J. (2001). No Such Thing as a Free Safe Lunch: The Cost of Food Safety Regulation in the Meat Industry. American Journal of Agricultural Economics, 82(2): 310–22.

Ayse, A. & A. Gary. (2003). An Investigation of Export Performance Variations Related to Corporate Export Market Orientation. European Business Review, 15(1): 5–19.

Ayyagari, M., A. Demirguc-Kunt & V. Maksimovic, (2011). Small vs Young Firms across the World. Policy Research Working Paper Series, World Bank.

Baines P., C. Fill, S. Rosengren & Antonetti P. (2019). Marketing. Oxford University Press. 5th Edition

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17: 99–120.

Barney, J. M. W. & D. J. Ketchenand Jr. (2001). The Resource-Based View of the Firm: Ten Years after 1991. Journal of Management, 27: 625–641.

Brah, S.A. S. Tee, & B. Rao. (2002). Relationship between TQM and Performance of Singapore Companies. International Journal of Quality and Reliability Management. 19(4): 356–379.

Büthe, T. & M. Walter. (2011). The New Global Rulers: The Privatization of Regulation in the World Economy. Princeton (N. J.): Princeton University Press.

Buvik, A. (2001). The Industrial Purchasing Research Framework: A Comparison of Theoretical Perspectives from Microeconomics, Marketing and Organization Science. Journal of Business and Industrial Marketing, 16(6): 439–450.

Cadogan, J. W., A. L. Souchon & D. B. Procter, (2008). The Quality of Market-Oriented Behaviours: Formative Index Construction. Journal of Business Research, 61: 1263–1277.

Caswel J. (2003). Food Safety in Food Security and Food trade Trends in Food Safety Standards and Regulation: Implications for Developing Countries. In L. J. Unnevehr (ed.). Food Safety in Food Security and Food Trade. International Food Policy Research Institute. Washington, D.C. U.S.A.

Confederation of Tanzania Industries (CTI). (2011). A Situational Analysis of the Regulatory Framework Affecting the Manufacturing Sector in Tanzania.

—. (2013). Simplifying Compliance with Regulations to Enhance Ease of Doing Business in Tanzania. Policy Proposal by the Institute of Management and Entrepreneurship Development.

Conner, K. R. (1991). A Historical Comparison of Resource-Based Theory and Five Schools of Thought Within Industrial Organization Economics: Do We Have a New Theory of the Firm? Journal of Management, 17(1): 121–154.

Cuffaro, N. & P. Liu. (2007). Technical Regulations and Standards for Food Exports: Trust and the Credence Goods Problem. Commodity Market Review, 2007–2008, 67-84.

Quality Standards and Export Performance of Tanzania Food-Based SMEs

Dalberg. (2011). Report on Support to SMEs in Developing Countries Through Financial Intermediaries. Briefing paper. Dietz, H. M. & S. W. Stephen. (2000). Assessment of the Small-scale Food Processing Subsector in Tanzania and Uganda. CTA, Wageningen, The Netherlands

Dietz, H.M, S. Matee & W. Ssali. (2000). Assessment of the Small-scale Food Processing Subsector in Tanzania and Uganda. The Technical Centre for Agricultural and Rural Cooperation Study Report.

Drew, E. & C. Healy. (2006). Quality Management Approaches in Iris Organizations. The TQM Magazine, 18 (4): 358–371.

EaP GREEN. (2016). Environmental Policy Toolkit for Greening SMEs in the EU Eastern Partnership countries, OECD report as part of the EU-funded EaP GREEN project, http://www.oecd.org/env/outreach/Greening-SMEs-policy-toolkit-eng.pdf.

Faße, A., N. Oelze & U. Grote. (2015). The Role of Food Safety Standards in Tanzania and their Implications for Food Security. Work package 3.2. Contract number: 031A249AD

Garvin, D.A. (1984). What Does Product Quality Really Mean? Sloan Management Review. Fall 1984: 25-43

—. (1987). Competing on the Eight Dimensions of Quality. Harvard Business Review, 65: 101-109.

Gereffi, G. (1994). Organisation of Buyer-driven Global Commodity Chains: How U.S Retailers Shape Overseas Production Networks. In G. Gereffi and M. Korzeniewicz (eds.). Commodity Chains and Global Capitalism. Westport, Conn: Greenwood Press.

Henson S. & J. Humphrey. (2009) The Impacts of Private Food Safety Standards on the Food Chain and on Public Standard-Setting Processes. Paper Prepared for FAO/WHO, May 2009.

Henson, J. & R. Jaffee. (2005) Standards and Agro-Food Exports from Developing Countries: Rebalancing the Debate. World Bank Policy Research Working Paper.

Henson, S. & J. Humphrey (2009). The Impact of Private Food Safety Standards on the Food Chain and on Public Standard-SeAng Processes. FAO, Rome. http://www. fao.org/ docrep/012/i1132e/i1132e00.pd

Henson, S.J & S. Blandon. (2009). The Impact of Food Safety Standards on an Export-Oriented Supply Chain: Case of the Horticultural Sector in Guatemala. A presentation prepared for the Economic Commission for Latin America and the Caribbean (ECLAC). https://www.slideserve.com/coralie/the-impact-of-food-safety-standards-on-an-export-oriented-supply-chain-case-of-the-horticultural-sector-in-guatemala

Holleran, E., M.E. Bredahal & L. Zaibet. (1999). Private Incentives for Adopting Food Safety and Quality Assurance. Food Policy, 24: 669–683.

Hove, P. & C. Tarisai. (2013). Internal Factors Affecting the Successful Growth and Survival of Small and Micro Agri-business Firms in Alice Communal Area. Journal of Economics, 4(1): 57-67.

Humphrey J. & H. Schimitz. (2003). Governance in Global Value Chains. In Schimitz, H. (ed.). Local Enterprises in the Global Economy: Issues of Governance and Up-grading. Edward Edgar, Cheltenham.

Omar K. Mbura

Hussein, M., A. Fearne, M. C. Garcia & S. Di Falco. (2010). Comparative Analysis of Cost-Effectiveness of Co-Regulatory Approaches to Food Safety. Contributed Paper to the Agricultural Economics Society's 84th annual conference Edinburgh from the 29th to the 31st of March 2010. International Organization for Standardization (ISO). (2012). Catalogue of ISO Technical Assistance and Training Program for ISO Members.

Jacobs, S.A, H. de Bee & M. Larney. (2009). Adult Consumers' Understanding and Use of Information on Food Labels: A Study among Consumers Living in the Potchefstroom and Klerksdorp Region, North-West University South Africa. Public Health Nutrition, 14(3): 10-22.

Jaffee, S. & Henson, S.J. (2004). Standards and Agrifood Exports from Developing Countries: Rebalancing the Debate. World Bank Policy Research Working Paper 3348. Washington DC, the World Bank.

Janaka, W. & J. Suwendrani. (2011). Implications Of Agri-Food Standards For Sri Lanka: Case Studies Of Tea And Fisheries Export Industries, No 10411, Working Papers, Asia-Pacific Research and Training Network on Trade (ARTNeT).

Jobber, D. & F. Ellis-Chadwick. (2019). Principles and Practices of Marketing. 9th edition. McGraw-Hill Education/Europe, Middle East & Africa;

Katyega, F. (2016). Role of Tanzania Bureau of Standards in Regulation of Small and Medium Enterprises (SMEs) in Tanzania. Dissertation paper, Bachelor of Laws, University of Dar es Salaam, June 2016.

Kelly, D. E. (2007). The Role Of Small And Large Businesses In Economic Development. Economic Review, Federal Reserve Bank of Kansas City, QII: 73-97.

Kontogeorgos, A. & A. Semos. (2008). Marketing Aspects of Quality Assurance Systems: The Organic Food Sector case. British Food Journal, 110(8): 829–883.

Kothari, C.R. (2004). Research Methodology Methods and Techniques. New Delhi: New Age International. Upper Saddle River, NJ: Prentice Hall.

Kotler, P. & G. Armstrong. (2018). Principles of Marketing. 17th edition. Pearson Education Limited, United Kingdom

Larsen, K., R. Kim & F. Theus (eds.). (2009). Agribusiness and Innovations Systems in Tanzania /Africa. The World Bank Washington D.C.

Leonidou, L., C. Katsikeas & S. Samiee. (2002). Marketing Strategy Determinates of Export Performance: A Meta-analysis. Journal of Business Research, 55(1): 517–567.

M’Nduyo, C. M., C. Nkondi & T. Thoruwa. (2013). Determinants of the Extent to which the Operational and Running Cost Affect Competitive Performance of Textile SMEs in Kenya. Finance, Economics and Applied Research Journal, 2(2): 1–8.

Maertens M. & J.F.M. Swinnen. (2006). Standards as Barriers and Catalysts for Trade and Poverty Reduction. Paper prepared for the invited panel session on food safety standards and agri-food exports from developing countries at the 26th conference of the international association of Agricultural Economists, Queensland, Australia.

Quality Standards and Export Performance of Tanzania Food-Based SMEs

Mbega, N. (2011). The Consumer Awareness Towards Quality Assurance and Standards of the Products in Tanzania. MBA Dissertation, University of Dar es Salaam.

Mbura, O.K. & M. Bambaganya. (2014). Modelling Business Development Services (BDS) in the Tanzania SMEs Market: Theoretical and Conceptual Framework Issues. The Tanzania Journal of Development Studies, 14(1 & 2): 2014.

Mbura, O.K. (2013). Entrepreneurship Development and Management in Tanzania. Theoretical and Practical Reflections. NBAA publications.

Mtui, E. (2006). Tanzania on the Influence of Product Standardization on Tanzania Consumers Choice: A Case of Tanzania Bureau of Standards - Protecting Consumers. Publication by Database of African Theses and Dissertations.

Nyoro. B. (2007). The Compatibility of Trade Policy with Domestic Policy Interventions Affecting the Grains Sector in Kenya. Paper presented at the FAO’s workshop on Trade and Policy for Food Products Conducive to Development in Eastern Africa, 1–2 March, 2007, Rome. Organisation for Economic Co-operation and Development (OECD). (2018). Entrepreneurship at a Glance Highlights 2018. Available at: www.oecd.org/ sdd/ business-stats/EAG_2018_Highlights.xlsx. Accessed on 10th November 2018.

—. (2004). Private Standards and Shaping of the Agri-food System. Paris. OECD.

—. (2005). Standards and Conformity Assessment in Trade: Minimising Barriers and Maximising Benefits. Workshop and Policy Dialogue.

—. (2007). Enhancing the Role of SMEs in Global Value Chains. Tokyo, Japan.

—. (2009). Eco-Labelling and Certification in the Fisheries Sector. Proceedings from Round Table discussion in the Hague, The Netherlands on 22-23 April, 2009.

—. (2019). Cultivating Successful Entrepreneurs. Available at: https://www.oecd.org/ cfe/leed/entrepreneurship.htm. Google Scholar.

Parasuraman, A., V.A. Zeithaml & L.L. Berry. (1988). SERVQUAL: A Multiple-item Scale for Measuring Consumer Perceptions of Service Quality. Journal of Retailing, 60 spring: 12–40.

Prahalad, C. & G. Hamel. (1990). The Core Competence of the Corporation. Harvard Business Review, 68 (May–June): 79–91.

—. (1994). Competing for the Future. Boston Massachusetts: Harvard Business School Press.

Rao, S., T. Raghunathan & L. Salis. (1997). A Comparative Study on Quality Practices. USA. China and India. Journal of Industrial Management and Data System, 97(5): 371–394.

Reardon, T. & E. Farina. (2002). The Rise of Private Food Quality and Safety Standards: Illustrations from Brazil. International Food and Agribusiness Management Review, 4: 413–421.

Reardon, T. (2001). Rural Non-farm Employment and Incomes in Latin America: Overview and Policy Implications. World Development, 29 (3): 395–409.

Sebastianelli, R. & N. Tamimi. (2002) How Product Quality Dimensions Relate to Defining. Quality International Journal of Quality & Reliability Management, 19(4): 442-453.

Omar K. Mbura

Shoham, A. (1996). Global Marketing Standardization. Journal of Global Marketing, 9 (1/2): 91–119. Silva, C.A. da & H.M. de Souza Filho. (2007). Guidelines for Rapid Appraisals of Agrifood Chain Performance in Developing Countries. Agricultural Management, Marketing and Finance Occasional Paper 20. Rome, Italy: FAO.

Singh, G., D. R. Pathak, & R. Naz. (2010). Issues Faced by SMEs in the Internationalization Process: Results from Fiji and Samoa. International Journal of Emerging Markets, 5(2): 153–182.

Small Enterprise Assistance Fund (SEAF). (2007). From Poverty to Prosperity: Understanding the Impact of Investing in Small and Medium Enterprises Data Survey and Case Study Analysis of SEAF Investments. http//seaf.com/wp-contents/ uploads/ 2014/from prosperity to poverty/pdf Accessed 10th September 2019.

Sousa, C., F. Martinez-Lopez & F. Coelho. (2008). The Determinants of Export Performance: A Review of the Research in the Literature Between 1998 and 2005. International Journal of Management Review, 10(4): 343–374.

Steenkamp, E., & M. Meulenberg. (1986). Perceived Quality and Its Relationship to Preference: An Application to Margarine and Butter. In K. Moller and M. Paltschik (eds.). Contemporary Research in Marketing 1, pp. 541–561.

Steenkamp, J.-B. E. M & H. C. M. Van Trijp. (1996). Quality Guidance: A Consumer-based Approach to Food Quality Improvement Using Partial Least Squares. European Review of Agricultural Economics, 23(2): 195–215.

Stroyan, J. & N. Brown. (2012). Using Standards to Support Growth, Competitiveness and Innovation. European Commission. Guidebook Series.

Tanzania Invest. (2016). Tanzania Small and Medium Enterprises. https://www. tanzaniainvest.com/sme. Accessed on 2nd October, 2019.

Tanzania Private Sector Foundation (TPSF). (2010). Supporting the Competitiveness of Food Processing in Tanzania Strategic Action Plan. Executive Summary March, 2010

United Nations (UN). (1998). World Population Prospects: The 1996 Revision. New York. United Nations Conference on Trade and Development (UNCTAD). (2005). Costs of Agri-Food Safety and SPS Compliance: United Republic of Tanzania, Mozambique and Guinea: Tropical Fruits. Selected Commodity issues in the context of Trade and Development. Unclad/Ditc/Com/2005/2 at 9. United Nations Industrial Development Organization (UNIDO). (2002). Development of Clusters and Networks of SMEs. The UNIDO Programme. Vienna: UNIDO.

—. (2006). Role of Standards: A Guide for Small and Medium-Sized Enterprises (Working Paper).

United Republic of Tanzania (URT). (2003). National Trade Policy for Competitive and Export-Led Growth. Ministry of Industry and Trade. Dar es Salaam: Government Printer.

—. (2002, 2003). Small and Medium Enterprise Development Policy. Ministry of Industry and Trade. Dar es Salaam: Government Printer.

Quality Standards and Export Performance of Tanzania Food-Based SMEs

—. (2003). Tanzania Food, Drugs and Cosmetics Act 2003. Dar es Salaam: Government Printer.

—. (2008). The Standard Act, Act. No. 2 of 2008. Dar es Salaam: Government Printer.

—. The Standard Act 2009, and its Regulations No. 91, 137 and 672, Sec 3(1), 4 (1)1(k), 4 (e), 24, 27 & 28. Dar es Salaam: Government Printer.

—. (2010). Economic Survey, 2009. Ministry of Finance and Economic Affairs. Dar es Salaam: Government Printer.

Unnevehr, L. & H. Jensen. (2005). Industry Costs to Make Food Safe: Now and Under a Risk-Based System. In S. Hoffman and Taylor (eds.). Towards Safer Food: Perspectives on Risk and Priority Setting, DC: Resources for the Future, 105–28.

Unnevehr, L. J., & L. Ronchi. (2014). Food Safety Standards: Economic and Market Impacts in Developing Countries (English). Viewpoint; note no. 341. Washington, D.C.: WorldBank Group. http://documents.worldbank.org/curated/en/681851471859 603213/ Food-safety-standards-economic-and-market-impacts-in-developing-countries

Walgenbach, P. & N. Beck. (2003). ISO 9000 and Formalization – How Organizational Contingencies Affect Organizational Responses to Institutional Forces. Schmalenbach Business Review, 55: 293–320.

Webster, J. & C. Hawkes. (2009). Reformulating Food Products for Health: Context and Key Issues for Moving Forward in Europe November, 2009. Working paper on reformulation for health - the way forward

Wernerfelt, B. (1984). A Resource-based View of the Firm. Strategic Management Journal, 5(2): 171–180.

World Bank. (2005). Food Safety and Agricultural Health Standards: Challenges and Opportunities for Developing Countries Exports. Washington DC: World Bank.

—. (2012). Regional Quality Standards for Food Staples in Africa. Available at www. kilimo.go.tz/publications/english docs/ASDP. Accessed on 5th August 2017.

—. (2017). Improving Access to Finance for SMEs in Tanzania: Learning from Malaysia’s Experience. https://blogs.worldbank.org/eastasiapacific/improving-access-finance-smes- tanzania-learning-malaysia-s-experience. Accessed on 2nd October 2019


Refbacks

  • There are currently no refbacks.


Copyright (c) 2020 Tanzania Journal of Development Studies

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.