Factors influencing effective performance of foreign based firms in Tanzania: a case of selected communication, financing and manufacturing firms in Dar es Salaam

The objective of this study was to examine the factors which influence the effective business performance of the foreign based firms in Tanzania. This study was descriptive in nature. The data were collected through close ended questionnaire administered to117 employees of nine foreign based firms in the communication, financing and manufacturing sectors in Tanzania. The response rate was 91(78%) and the collected data were analyzed quantitatively using the Statistical Package for Social Sciences (SPSS 17). The findings of the study revealed that those firms which are market oriented perform more effectively. The critical success factors to these firms were focused on customer’s satisfaction and consumers/suppliers relations. From the findings of the study this was possible by utilizing effectively the employed competent skills to provide products and services that meet customers’ requirements. Other critical factors for effective performance were skilled human resources in market research, adopting the programmes through undertaking market research on specific behaviour and actions of customers in the target markets, utilization of data sharing technology and firm’s admittance of knowledge as an asset. With external environment, the findings reveal that the political stability, firms’ awareness of difference and similarities in cultural and social behaviour of its customers and firms brands capacity in the market share were the most influential aspects. The study recommends that, effective performance can be maximized and sustained if the business managers can develop, deploy and efficiently utilize the core competence from the internal organizational factors. They can also maximize and sustain performance by responding to external environmental factors with appropriate localized strategies.They must keep much effort on the identified critical factors. Tanzania Government and its agents must fairly and equally implement its improved policies, and eliminate uncertainty of non-influential government policies to the firms’ effective performance and growth besides uncovered factors in this study like infrastructures and the like.