Department of Marketing

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Aninclusiveapproachto regulatingthesecondeconomy AtaleoffourSub-SaharanAfricaneconomies
(Emerald Group Publishing Limited, 2018-09-03) Olomi, Donath; Charles, Goodluck; Juma, Norma
Purpose – This study aims to examine the experiences and lessons from formalisation initiatives in four sub-Saharan African countries. Drawing upon the three main theories that explain the existence of business informality – the exclusion model, rational exit model and dual economy model – the study offers an alternativepathtobusinessformalisation. Design/methodology/approach – The researchers adopted a descriptive-qualitative method, and throughthetriangulationofdata,identiﬁedemergingthemesandpatterns. Findings – The ﬁndings suggest that the informal sector has a small layer that responds to the simpliﬁcation of regulations and a larger one that requires a different formalisation framework. This shift in paradigm, indirect or group formalisation, where business associations facilitate traceability (registration), self-regulation, access to resources and services for members was observed in all four of the economies studied:Kenya,Ghana,RwandaandTanzania. Research limitations/implications – As with every qualitative study, subjectivity and interpretation inevitably affect the replicability and generalisability of the ﬁndings. However, the rich meanings emerging fromthequalitativeanalysisofthetextarecriticallyinsightful. Practical implications – Developing countries should explore indirect formalisation. Provision of workspace and construction of business premises for informal operators should be given high priority. The model for building structures for micro enterprises should change in favour of ownership by the operators throughtheirownassociationsorotherprivatesectorinvestors. Originality/value – A pioneering study on cross-country analysis based on sub-Saharan African nations tounearthanewparadigm,ashifttowardsindirectorgroupformalisation.
Coordinating regulatory agencies for improved tourism policy in Tanzania
(Emerald Group Publishing Limited, 2019-04-16) Charles, Goodluck
Purpose – The purpose of this paper is to explore the institutional challenges of coordinating regulatory agencies and the costs associated with compliance requirements in Tanzania’s tourist industry. Design/methodology/approach – This paper is based on qualitative research conducted in the northern tourism circuit of Tanzania. Data were generated through semi-structured interviews and focus group discussions with owner-managers of tourism enterprises, heads of regulatory agencies and leaders of business associations (n¼60). The findings were analysed through triangulating the data from various sources to establish emerging themes and patterns in accordance with the theoretical underpinnings and research objectives. Findings– Thefindingsshowthattourismenterprisesaregovernedbyamultitudeofnational,sub-national andsectoralinstitutionsmandatedtoimposeseveraltaxes,feesandleviesonenterprises.Asaresult,tourism enterprisesarerequiredtoobtainduplicatelicencesandaresubjectedtouncoordinatedinspections.Thepoor treatment byregulatoryagencies, theunclearbasis for estimatingtaxes and levies,inadequate tax education and closure of businesses were also reported as key regulatory challenges. Most challenges emerge from agentification of the public sector and the lack of a legal framework in which to formally facilitate coordination and information sharing amongst government agencies. Practical implications – The paper proposes streamlining the functions of divergent institutions governing the industry by increasing intergovernmental coordination through delegating some functions, sharing information and enforcing formal inter-ministerial and cross-government consultation structures. Originality/value – Thispaperaddsvaluetopreviousregulatoryassessmentsbyempiricallyanalysingthe specific sector and showing how the principal–agent relationship for the public sector can be improved through enforcing coordination of the multiple agencies governing the tourist industry.
Effects Of Collateral On Loan Repayment: Evidence From An Informal Lending Institution
(Routledge, 2016-04-07) Charles, Goodluck; Mori, Neema
We examine the eﬀect of the collateral informal lenders use to ensure loan repayment. Speciﬁcally we measure how the use of movable and immovable assets aﬀects loan repayment and delinquency rate, and assess the extent to which guarantorship and relationship-lending act as collateral to improve loan repayment. With a dataset of 835 individual borrowers drawn from an informal Tanzanian lending institution, we run descriptive and econometric models. The results suggest that movable assets increase the likelihood that borrowers perceived to be less creditworthy will obtain loans from informal sources and repay them. We also ﬁnd a small proportion of customers to have pledged immovable assets as collateral when borrowing from informal lenders. The results also show the positive eﬀect of referral, which implies that relationship lending and social collateral is key to increasing access to ﬁnance through informal lenders. Our results contribute to the advancement of economic theory, speciﬁcally in the ex-ante and ex-postrelated literature.
EFFECTS OF NEPOTISM AND FAMILY CONFLICTS ON THE PERFORMANCE OF FAMILY-OWNED FIRMS IN TANZANIA: CONTRASTING VIEWS
(2015-07-30) Charles, Goodluck
Drawing on the agency theory and the stewardship perspective, this article examines the extent to which nepotism and family conflicts affect the performance of family-owned firms in Tanzania. From a sample of 163 family firms and the Structural Equation Model (SEM) results, the article proffers that nepotism and family conflicts have no significant negative effect on both the financial and market-based performance of family firms. Contrary to previous studies which report that nepotism and family conflicts are detrimental to a firm’s performance, it demonstrates that the small family-owned firms operating in a developing economy with an inadequate institutional environment are better off by engaging committed and productive staff from those with a common family background and culture. Although the article supports the stewardship perspective on family enterprises, it indicates the need for further investigation into the impact of family characteristics on firm performance given the differing views that exist in academic literature.
The effects of organisational capabilities on firm success Evidence from Eritrean wood-andmetal-manufacturing firms
(Emerald Group Publishing Limited, 2016-09-05) Selomon, Tuccu Tewolde; Charles, Goodluck; Issack, Shimba Allan
Abstract Purpose – The purpose of this paper is to examine the effects of organisational capabilities on the success of Eritrean wood- and metal-manufacturing firms. Specifically, the paper analyses the effects of owner-managers’ innovativeness, personal relations and employees’ technical skills on the firms’ success. Design/methodology/approach –Thestudyentailedasurveyof287wood-andmetal-manufacturing small and medium enterprises,whichwereselectedusingstratifiedrandomsampling.Structuralequation modelling was used to analyse the data and generate the findings presented in this paper. Findings – The findings indicate that owner-managers’ innovativeness and personal relations have a significant influence on the firms’ success. However, although employees’ technical skills relate positively to the firms’ success, the relationship is statistically insignificant largely because of the limited participation of workers in designing and developing the products. Practical implications – The paper can enlighten owner-managers about the value of innovativeness and relational capabilities for the success of their firms. It generates insights that can guide policy makers to promote innovation and relational capabilities in the wood- and metal manufacturing sub-sector. Originality/value – The paper contributes to the debate on firms’ success by empirically testing the effect of the specific dimensions of organisational capabilities on the success of SMEs operating in a developing economy context. It widens the understanding of how organisational capabilities influence firm success.
Firm-level Perspectives on State–Business Relations in Africa: The Food-processing Sector in Kenya, Tanzania and Zambia
(Routledge, 2016-11-10) Charles, Goodluck; Jeppesen, Soeren; Kamau, Paul; Kragelund, Peter
Experiences from developed and emerging economies inform us that close state– business relations (SBRs) are crucial for economic development and structural transformation. Based on the positive experiences from other parts of the world, most African governments have begun processes to establish collaborative SBRs. Amongst other initiatives, these processes include amendments to existing laws to facilitate public–private interaction, direct support to existing business associations (BAs). This article draws on an analysis of survey data from 210 local ﬁrms, complemented with qualitative data from interviews with 41 ﬁrms, 20 key informants and a range of secondary sources on the food-processing sectors of Kenya, Tanzania and Zambia. The article shows that businesses in these countries have limited policy inﬂuence, ﬁnd policies and programmes to be inadequate when targeting the needs and requirements of local businesses and that BAs in these countries are poorly organised. In spite of initiatives taken by the states and other actors, including an increase in the number of formal relations between state and businesses, it is difﬁcult to conclude whether SBRs are collaborative or collusive. The article contributes to the existing SBR literature by adding a ﬁrm-level perspective and by enhancing our knowledge on the usefulness of key theoretical approaches to these issues in an African context.
INCLUSIVE WASTE GOVERNANCE AND GRASSROOTS INNOVATIONS FOR SOCIAL, ENVIRONMENTAL AND ECONOMIC CHANGE
(Wiego, 2018-10-19) Adalberto, M. M. de Azevedo; Sebastián, Carenzo; Charles, Goodluck; Gutberlet, Jutta; Jaan-Henrik, Kain; Michael, O. Oloko; Jessica, Pérez Reynosa; Patrik, Zapata; María José, Zapata Campos
Participants of two research projects (Recycling Networks: Grassroots resilience tackling climate, environmental and poverty challenges (funded by the Swedish Research Council) and Mapping Waste Governance (funded by the Social Sciences and Humanities Research Council of Canada) collaborate in offering a critical inter- and transdisciplinary perspective on waste and waste actors (waste picker cooperatives, associations, community-based organizations, partnerships, networks and NGOs). The research is conducted in the following cities: Buenos Aires (Argentina), São Paulo (Brazil), Vancouver and Montreal (Canada), Kisumu (Kenya), Managua (Nicaragua) and Dar es Salaam (Tanzania). Together we examine the challenges that innovative grassroots initiatives and networks encounter in generating livelihoods to improve household waste collection and recycling, particularly in informal settlements of global South cities. We seek to map waste governance and successful waste management initiatives, arrangements and policies involving grassroots initiatives. In this report, we present a brief description of solid waste governance in the cities where we conducted fieldwork. We then illuminate some of our findings on grassroots innovations involving waste pickers or waste workers in these cities. Both research projects combine multi-case studies of waste picker groups and local government initiatives, apply qualitative research tools and participatory action research (e.g. photo voice, participant observation, workshops, surveys and interviews). We are interested in understanding processes, challenges and opportunities related to how these grassroots initiatives and networks operate to bring about socio-environmental and economic change? How they address challenges and what the assets are in everyday waste governance that can be explored to make waste governance more sustainable and thus more inclusive? Researchers involved in these two projects, key stakeholders from grassroots initiatives in these countries, representatives from some international waste picker networks and local and regional government officials from Kisumu, Kenya, met between 23rd and 29th of April 2018, in Kisumu to present and discuss the results of the first year of research activities, which are herewith documented.
Integrating research into policy sphere: evidence from Tanzania
(Taylor& Fransis, 2021-09-09) Charles, Goodluck
This article explores lessons on integrating research evidence into policy through public-private dialogue for the purpose of enhancing evidence-based policy making. Based on a qualitative analysis of the engagement of researchers and policy actors in Tanzania, it is evident that collaborative arrangements of researchers, the private sector, media and policy makers promote the use of research findings in the policy-making process. Accordingly, we suggest a multi-disciplinary network of academia and policy actors as a tool to bring about effective utilisation of research findings in policy decisions
International marketing: Theory and practice from developing countries
(Cambridge Scholars Publishing, 2016-09-23) Charles, Goodluck; Anderson, Wineaster
This volume offers an excellent understanding of international marketing theory and practice within a constantly-changing and increasingly-complex global environment, with greater emphasis on developing countries. Designed for academics, researchers, students, practitioners, and policy-makers in the fields of international marketing, international business, and international trade, the book provides in-depth knowledge and understanding of contemporary theories and their applications in international marketing functions and practices. It exposes the readers to the global environmental forces that impact on international marketing involvement and the basic marketing strategies suitable for international marketing. As such, it will enable the reader to develop skills for effective planning, organization, execution, and control of international marketing operations. While a great deal of effort has been spent on meaningfully integrating the theoretical foundations and actual business practices, various concepts are supported by compelling exhibits, industry-specific examples, and illustrations from developing countries. The questions at the end of each chapter are designed to test the readers’ understanding and application of what they have learned in actual situations.
Loanrepaymentperformanceof clientsofinformal lendinginstitutions Doborrowinghistoriesanddynamic incentivesmatter?
(Emerald Group Publishing Limited, 2017-09-04) Charles, Goodluck; Mori, Neema
Purpose – The purpose of this article is to examine the effects that dynamic incentives and the borrowing histories of clients of informal lending institutions have on loan repayment performance, in particular, the extenttowhichmultipleborrowingandprogressivelendingaffecttherepaymentofloans. Design/methodology/approach – The paper uses a data setof 835 borrowers drawn from an informal lending institution in Tanzania. Descriptive analysis and econometric models are used to test the developed hypotheses. Findings – Whereas clients with multiple loans are associated with poor loan repayment, progressive lending contributes to positive repayment outcomes. Multiple borrowers face increased debt levels and thereby an increased inability to meet their repayment obligations; in contrast, progressive lending by building up a lender–client relationship helps clients to obtain higher loans with a minimum amount of screening. Researchlimitations/implications – Thiswasacross-sectionalstudybasedonasampleofindividual clients drawn from a single institution. However, since the majority of clients had also taken out loans with otherﬁnancialinstitutions,thesampleisconsideredtoberepresentative. Practical implications – A client’s past repayment performance and multiple loan history must be assessed so that multiple borrowing can be prevented and credit absorption capacity can be gauged more accurately.Therepeatednatureoftheinteractionsandthethreattocutoffanyfuturelending(ifloansarenot repaid)canbeexploitedtoovercomeanyinformationdeﬁcit. Originality/value – This study was conducted in a context in which the degree of information sharing was low and institutional access to clients’ credit histories was limited. It contributes knowledge on how lenders minimise the risk ﬂowing from the ex ante information gap and moral hazards arising from the ex postinformationgap.
OWNER MANAGERS’ PERCEPTION OF THE IMPACT OF REGULATIONS ON THE COMPETITIVENESS OF FOOD PROCESSORS IN TANZANIA
(DUP, 2012-06) Charles, Goodluck; Rwehikiza, David
This paper assesses the owner managers’ perception of the impact of regulations on competitiveness of food processors in Tanzania. Specifically, the paper examines the perceived relevance of existing regulations in the food processing sector, the level of enterprises’ satisfaction with the regulatory authorities in the sector and the extent to which competitiveness of food processors is affected by regulations. Based on review of the legislations directed to the food processing sector and the results of a survey of 115 firms, the findings reveal that even though most enterprises appreciate the value of regulating the food sector, they are relatively dissatisfied with the level of services offered by regulatory authorities. The study also shows that due to over-regulation, enterprises operating in the food processing sector incur significant compliance costs, and this cost is detrimental to their competitiveness. In view of the theory of regulation, the paper recommends the review of regulatory framework by ensuring that regulations in the food sector are implemented based on the principles of the Regulatory Impact Assessment (RIA). Further research is also recommended to advance the theory of regulation in a context of the developing economy, and to inform policy makers on how best to harmonise regulations in highly regulated sectors.
Public–Private Dialogue and Policy Reforms: Lessons from Tanzania
(2017-01) Charles, Goodluck
The role of boards of directors of family-owned microfinance institutions Lessons from the boardroom
(Emerald Group Publishing Limited, 2019-03-04) Mori, Neema; Charles, Goodluck
Purpose – The purpose of this paper is to investigate the composition and role of a board of directors in a family-owned microfinance institution (FO-MFI) in Tanzania. Design/methodology/approach – The paper is based on a longitudinal analysis of the board practices based on boardroom observations for the period between 2012 and 2015. The study further collected and analyzed qualitative data from interviews with board members, management, and institution staff. Findings – The findings indicate that even though external board members were appointed as a result of their diverse expertise and skills, their personal relationships with shareholders, life-cycle stage of the institution, and the nature of the industry influenced their selection. It was also found that the board played more of the service role in strategy formulation, resource mobilization, and networking, and, through that, members were also able to exercise control of the firm. Research limitations/implications – Because this paper is based on a qualitative approach, it suffers from the challenge of generalization. However, numerous research issues have been raised that require further investigation. Originality/value – This study contributes to the governance literature by showing what really happens in a family-owned firm, as it is based on a unique data set drawn from the boardroom of the FO-MFI in a context of a developing economy. This context is unique, given that most private MFIs operating as family enterprises do not have a professional board of directors. The study shows how the board contributes to a strategic direction of the firm in which the management and ownership are not separated, and the first generation is running the firm
Role of family resources in firm performance: Evidence from Tanzania
(2014-05-04) Charles, Goodluck
The main purpose of this article is to examine the role of intangible family resources in the performance of family enterprises in Tanzania. In particular, the article examines the role of information sharing, family patient capital and family labor in firm performance. Using a sample of 163 family firms and the structural equation model of analysis, the findings indicate that family patient capital and information sharing contribute significantly to the performance of firms. With regard to the cost of labor, the study does not show any evidence that lower labor costs improve family firms' performance, most probably because these businesses incur additional labor costs which are not directly linked to the business. Based on the results, it is concluded that the family has an influence on the strategic level of family businesses, thereby contributing to their success.
Strategic Capabilities and Success of Food-Processing Firms in Tanzania
(DUP, 2021-07-02) Charles, Goodluck; Ishengoma, Easter; Lettice, Rutashobya
This article identifies firms’ strategic capabilities in the food-processing industry and establishes the extent to which they influence firms’ success. Based on multinomial regression results drawn from the survey of 105 food-processing firms in Tanzania, it is evident that the leadership and vision of owner-managers was the most significant strategic capability irrespective of the firms’ degree of success. The results also indicate that applying superior technology, the owner-managers’ experience and level of education, engaging highly skilled and specialised employees, and the ability to access capital and sustain market growth were significant in distinguishing successful from poor performing firms. In view of the findings, our article adds value to the existing literature by linking strategic capabilities with varying degrees of firms’ success in the context of a developing economy. It suggests that food-processing firms need to acquire and develop the identified strategic capabilities in order to succeed, especially in a context where the business environment is volatile and unpredictable. Policy makers should facilitate less successful food-processing firms to develop, retain and sustain the strategic capabilities that enable firms to be successful.
Students’ entrepreneurial self-efficacy: does the teaching method matter?
(2015-11-09) Abaho, Ernest; Olomi, Donath; Charles, Goodluck
Purpose – The purpose of this paper is to examine the various entrepreneurship teaching methods in Uganda and how these methods relate to entrepreneurial self-efficacy (ESE). Design/methodology/approach – A sample of 522 final year students from selected universities and study programs was surveyed using self-reported questionnaires. Findings – There was a statistically significant positive relationship between ESE and lecturers’ business experience. Interacting with successful people, personal reading and handout notes, class presentationsandimaginarycasestudieshadastatisticallysignificantpositiverelationshipwithESE. There was no statistical significance in the relationship between ESE and some teaching methods. A positively significant correlation was also observed between lectures’ business experience and the choice of teaching method(s). Research limitations/implications – Further research should explore how various methods are used to teach different aspects of entrepreneurship as well as the attitudes and perceptions of entrepreneurship educators about entrepreneurial experience and its relevancy in entrepreneurship education. Practical implications – Lecturers should seek opportunities for attaining business experience throughpracticeandbusinessnetworks.Institutionsshouldorientlecturersthroughdifferentteaching stylesandtrainthemonhowtorelatelearningoutcomestolearningenvironmentsaswellasinvesting in learning aids. Originality/value – The study provides insights about the most feasible methods of activating ESE inthemostpracticalandefficientways.Italsoinformsreadersaboutthestateoflearningtechnologies from a developing country’s perspective.

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