The role of networking in internationalization of small and medium enterprises

This dissertation examines the role of networking in SMEs internationalization in Tanzanian perspective. Specifically the research focuses on the three key specific objectives being: to establish ways through which SMEs form their networks; to examine the impact of networking in internationalization; and to explore the challenges facing SMEs in developing international networks. The dissertation employed both quantitative and qualitative research approaches. It entailed the use of interviews, observations and semi - structured questionnaires in collecting data. The sample size of this study is 51 SMEs dealing with importation and exportation in Dar es Salaam. The data was analysed by using quantitative and descriptive analysis method through computer statistical packages (SPSS). Basing on the findings, networking has a very big role to play in internationalization of SMEs. Specifically in rising exports, meeting production targets, adding creativity in developing new knowledge and in accessing marketing information. The findings also show that, although networking enables SMEs internationalization, most of Tanzanian’s SMEs are not aware enough to capture this opportunity. The study therefore recommends that, for policymakers, SMEs, donors and other stakeholders whose most important aim is to develop small and medium business enterprises in developing countries especially Tanzania to use a network formation approach in addition to their traditional supporting approach and making strategies on how to benefit SMEs through networking.