Determinants of the Adoption of Product Quality Standards by the Manufacturing SMEs in Tanzania

Abstract

The paper intends to investigate factors that influence the adoption of product quality standards by SMEs. The study had the following specific findings; to examine the influence of entrepreneurial management on the adoption of product quality standards; to examine the influence of capacity enhancement on the adoption of product quality standards; and to examine the influence of market orientation on the adoption of product quality standards. The study applied two theories, namely Resource Based View (RBV) and Social Exchange Theory (SET), and the explanatory sequential design was applied. Questionnaires were distributed and collected from 208 SMEs in Dar es Salaam and 20 informants were interviewed. Data were analyzed using Multiple Regression analysis, Correlation of Coefficient, Mean and Independent T-Test. The qualitative data were analysed using the Thematic Analysis. The results showed that, entrepreneurial management, capacity enhancement and market orientation positively and significantly influence the adoption of product quality standards by SMEs. In addition, the business size has the moderating effect in that relationship. Among others, the study puts forward the recommendation that SMEs must focus on having the business managers that are visionary and committed to product quality standards.