Influence of network competencies on small and medium enterprises’ performance among building materials retailers in Tanzania

This study assessed the influence of network competencies on performance of small and medium enterprises (SMEs) in Tanzania. Specifically, it sought to: examine the extent to which network competence qualifications influence SMEs‟ performance in retailing sector of Tanzania; assess extent to which network competence task execution influence on SMEs‟ performance in retailing sector; and analyze extent to which network configuration influences SMEs‟ performance. Using quantitative research approach, data were collected from 314 SMEs retailing building materials in Mbeya, Njombe and Iringa. They were analyzed using structural equation modeling version 20 through the Analysis of Moment Structure (Amos) 20. The findings indicated that, network competence qualifications and network configuration have significant relationship within the subjective measures of SMEs‟ performance while network competence task execution did not. Thus, qualifications of owners/managers and configurations of networks are influential in enhancing SMEs while network competence task execution does not influence SMEs‟ performance. The study recommends a policy to be formulated that addresses network competence issue at both national and firm levels. Furthermore, the study recommends further studies to be done about network competence using different sector, methodology.