Technology, Entrepreneurial, and Market Orientations as Key Determinants of Small Business Success in Tanzania: A Multi-Dimensional Analysis
Keywords:
Technology Orientation, Entrepreneurial Orientation, Market Orientation, Small Business Success, TanzaniaAbstract
Small and medium enterprises (SMEs) in Tanzania face persistent challenges despite their critical role in economic development. While prior research has examined individual strategic orientations, little is known about their combined influence on different managerial functions in emerging economies. This study investigates the synergistic effects of technology orientation (TO), entrepreneurial orientation (EO), and market orientation (MO) on small business success across four managerial domains: marketing, operations, human resource, and financial management. Using a positivist paradigm and quantitative approach, data were collected from 410 randomly selected SMEs across eight Tanzanian regions and analyzed through multiple regression with validity and reliability assessments. The results reveal distinct patterns of influence. Technology orientation emerged as a consistent positive predictor across all domains, with the strongest effect on HRM (β = 0.470), suggesting digital tools enhance employee management in resource-constrained settings. Entrepreneurial orientation significantly predicted marketing (β = 0.443), operations (β = 0.302), and financial performance (β = 0.493) but showed a negative association with HRM (β = -0.083), indicating potential trade-offs between entrepreneurial dynamism and structured people management. Market orientation positively influenced marketing (β = 0.172), operations (β = 0.346), and HRM (β = 0.413) but had no significant effect on financial management (β = 0.002), suggesting customer focus improves internal processes but may yield delayed financial returns in competitive markets. Collectively, these orientations explain substantial variance in business success: 58.6% in marketing, 58.8% in operations, 58.3% in HRM, and 48.1% in financial management. The study contributes to strategic orientation theory by demonstrating context-dependent effects in an emerging African economy, revealing trade-offs between entrepreneurial dynamism and HR management, and highlighting the delayed financial returns of market orientation. It offers practical guidance for Tanzanian SMEs to achieve sustainable growth through balanced integration of these strategic orientations.
Downloads
References
Al-Ansari, Y., Altalib, M., & Sardoh, M. (2013). Technology orientation, innovation and business performance: A study of Dubai SMMEs. International Journal of Business and Management, 8(1), 1–11.
Alvarez-Torres, F. J., Lopez-Torres, G. C., & Schiuma, G. (2019). Linking entrepreneurial orientation to SMEs’ performance: Implications for entrepreneurship universities. Management Decision, 57(12), 3364–3386. https://doi.org/10.1108/MD-11-2018-1234
Bamfo, B. A., & Kraa, J. J. (2019). Market orientation and performance of small and medium enterprises in Ghana: The mediating role of innovation. Cogent Business & Management, 6(1), 1605703. https://doi.org/10.1080/23311975.2019.1605703
Burgess, S. M. (2011). Evolving context and future issues in international marketing. In H. C. Bothma & S. M. Burgess (Eds.), International marketing (pp. 432–454). Oxford University Press.
Byrne, B. M. (2013). Structural equation modelling with Mplus: Basic concepts, applications, and programming. Routledge.
Choi, S. B., & Williams, C. (2016). Entrepreneurial orientation and performance: Mediating effects of technology and marketing action across industry types. Industry and Innovation, 23(8), 673–693.
Chowdhury, M. S. A., Azam, M. K. G., & Islam, S. (2015). Problems and prospects of SME financing in Bangladesh. Asian Business Review, 2(2), 51–58.
Collis, J., & Hussey, R. (2014). Business research: A practical guide for undergraduate and postgraduate students (4th ed.). Palgrave Macmillan.
Covin, J. G., & Slevin, D. P. (1989). Strategic management of small firms in hostile and benign environments. *Strategic Management Journal, 10(1), 75-87.
Economic and Social Research Foundation. (2016, December). SMEs in Tanzania: Policy brief. https://esrf.or.tz/wp-content/uploads/2021/05/EACGF7-Tanzania.pdf
Field, A. P. (2009). Discovering statistics using SPSS: And sex, drugs and rock 'n' roll (3rd ed.). SAGE.
Gatignon, H., & Xuereb, J. M. (1997). Strategic orientation of the firm and new product performance. *Journal of Marketing Research, 34(1), 77-90.
Hakala, H. (2011). Strategic orientations in management literature: Three approaches to understanding the interaction between market, technology, entrepreneurial and learning orientations. International Journal of Management Reviews, 13(2), 199–217. https://doi.org/10.1111/j.1468-2370.2010.00292.x
Halaca, D. S. (2015). Multidimensional construct of technology orientation. Procedia - Social and Behavioral Sciences, 195, 1057–1065.
Hossain, M. U., & Asheq, A. A. (2019). The role of entrepreneurial orientation to SME performance in Bangladesh. International Journal of Entrepreneurship, 23(1), 1–11.
Kothari, C. R. (2019). Research methodology: Methods and techniques (4th ed.). New Age International Publishers.
Kumar, R. (2014). Research methodology: A step-by-step guide for beginners (4th ed.). SAGE.
Kumar, V. (2010). Customer relationship management. In Wiley international encyclopedia of marketing. https://doi.org/10.1002/9781444316568.wiem01015
Kushnir, K., Mirmulstein, M. L., & Ramalho, R. (2010). Micro, small, and medium enterprises around the world: How many are there, and what affects the count? World Bank/IFC. https://openknowledge.worldbank.org/handle/10986/17538
Kwabi, J., & Mboya, L. (2019). A review of factors affecting the growth of small and medium enterprises (SMEs) in Tanzania. European Journal of Business and Management, 11(33), 1–9.
Kwayu, E. I. (2006). Empowerment of economic actors in Tanzania: National Economic Empowerment Council. Ministry of Planning, Economy and Empowerment.
Loewe, M., Al-Ayouty, I., Altpeter, A., Borbein, L., Chantelauze, M., Kern, M., Niendorf, E., & Reda, M. (2013). Which factors determine the upgrading of small and medium-sized enterprises (SMEs)? The case of Egypt (Discussion Paper No. 6/2013). Deutsches Institut für Entwicklungspolitik (DIE). http://hdl.handle.net/10419/199201
Mackenhauer, J. R. (2016). The effect of national culture on Lean production [Master’s thesis, Aalborg University].
Mahmoud, M. A. (2011). Market orientation and business performance among SMMEs in Ghana. International Business Research, 4(1), 241–251.
Nulty, D. D. (2008). The adequacy of response rates to online and paper surveys: What can be done? Assessment & Evaluation in Higher Education, 33(3), 301–314. https://doi.org/10.1080/02602930701293231
Nunnally, J. C. (1978). Psychometric theory (2nd ed.). McGraw-Hill.
Reijonen, H., & Komppula, R. (2010). The adoption of market orientation in SMMEs: Required capabilities and relation to success. Journal of Strategic Marketing, 18(1), 19–37.
Saunders, M., Lewis, P., & Thornhill, A. (2019). Research methods for business students (8th ed.). Pearson.
Small Enterprise Development Agency (SEDA). (2004). SEDA small business assessment tool. SEDA.
Trainor, K. J., Rapp, A., Beitelspacher, L. S., & Schillewaert, N. (2011). Integrating information technology and marketing: An examination of the drivers and outcomes of e-marketing capability. Industrial Marketing Management, 40(1), 162–174.
Udriyah, U., Tham, J., & Azam, S. (2019). The effects of market orientation and innovation on competitive advantage and business performance of textile SMEs. Management Science Letters, 9(9), 1419–1428.
United Nations Industrial Development Organization (UNIDO). (2013). Tanzania SME development policy 2003: “Ten years after”: Implementation review. UNIDO.
United Republic of Tanzania (URT). (2003a). National trade policy for a competitive economy and export-led growth. Government Publishers.
United Republic of Tanzania (URT). (2003b). National policy for the development of small and medium enterprises. Government Publishers.
United Republic of Tanzania (URT). (2012a). Poverty and human development report 2011. Research and Analysis Working Group, MKUKUTA Monitoring System, Ministry of Finance.
United Republic of Tanzania (URT). (2012b). Micro, small and medium enterprises in Tanzania: National baseline survey report. Ministry of Industry and Trade and Financial Sector Deepening Trust.
Wales, W. J. (2015). Entrepreneurial orientation: A review and synthesis of promising research directions. International Small Business Journal, 34(1), 3–15.
Wales, W. J., Gupta, V. K., & Mousa, F.-T. (2013). Empirical research on entrepreneurial orientation: An assessment and suggestions for future research. International Small Business Journal, 31(4), 357–383.
World Bank. (2017, November 29). Improving access to finance for SMEs in Tanzania: Learning from Malaysia’s experience. World Bank Blogs. https://blogs.worldbank.org/eastasiapacific/improving-accessfinance-smes-tanzania-learning-malaysia-s-experience
World Bank. (2021). Tanzania economic update: What will it take for Tanzania to become a successful middle-income country? https://www.worldbank.org/en/country/tanzania/publication/tanzania-economic-update-what-will-it-take-for-tanzania-to-become-a-successful-middle-income-country
Zhou, K. Z., & Li, C. B. (2010). How strategic orientations influence the building of dynamic capability in emerging economies. Journal of Business Research, 63(3), 224–231.
Zhou, M., Wei, J. M., & Deci, E. L. (2009). The importance of autonomy for rural Chinese children's motivation for learning. Learning and Individual Differences, 19(4), 492–498. https://doi.org/10.1016/j.lindif.2009.05.003
Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business research methods (9th ed.). Cengage Learning.
Zortea-Johnston, E., Darroch, J., & Matear, S. (2012). Business orientations and innovation in small and medium sized enterprises. International Entrepreneurship and Management Journal, 8, 145–164.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Advances in Law, Pedagogy, and Multidisciplinary Humanities
This work is licensed under a Creative Commons Attribution 4.0 International License.
