The role of the owner-manager and business networking in small firms’ internalisation: a case study of handicraft firms in Dar es Salaam

Internationalization process in small firms is not an easy undertaking because of their small resource base and poor management capabilities. This research examined why small handicraft firms in Dar es Salaam were not exporting actively, given that growth of their firms depends on exports. The primary focus of the research was on the role of owner-managers and business networks in facilitating export success. The strategic actions of the owner-manager and external environment to the business were also examined. The approach involved a survey and case studies, interviewing about 40 owner managers in the survey and 4 others in the case studies. Results showed that network relationships were effective facilitators of small firms' internationalization, and more important, the owner-manager is a primary determinant of the firm's export success. Four types of networks were identified; networks among friends and customers abroad; with local exporting firms; with local manufacturers in villages; and networks of small firms within business clusters. A model showing the pattern of internationalization facilitated by these networks was established. The study concluded that owner managers of small firms play a prime responsibility in the success of export business and consequently facilitating growth. Growth can best be achieved through combining owner-manager's strategic actions with network influences.