Author(s) :

Emmanuel Chao, Nashwat Hamis, Lwako Lubida, Marry Mushi.

Volume/Issue :

Abstract :

This study investigates the drivers of cluster competitiveness among Small and Medium Enterprises (SMEs) in Tanzania, with a focus on how collaborative, innovative, environmental, and social dimensions contribute to sustainable competitiveness. A mixed-methods research design was adopted, integrating both qualitative and quantitative approaches to capture the complexity of SME cluster dynamics. Qualitative insights were obtained through in-depth interviews with key stakeholders in entrepreneurship hubs and cluster-supporting institutions, while quantitative data were collected via structured surveys administered to a sample of 178 SME respondents. The findings reveal that cluster collaboration, cluster innovation, cluster environmental sustainability, and cluster social sustainability all exert a significant positive influence on SME cluster competitiveness. Collaboration was found to enhance knowledge sharing, trust, and collective efficiency; innovation stimulated technological upgrading and adaptive capacity; environmental sustainability improved efficiency, resilience, and market attractiveness; while social sustainability reinforced trust, inclusivity, and reputational capital. Collectively, these drivers demonstrate that SME competitiveness within clusters extends beyond individual firm capabilities to the systemic advantages generated through cooperation, innovation, and sustainability practices. The study contributes to cluster theory and SME development discourse by highlighting the multidimensional factors that foster long-term competitiveness and provides policy implications for strengthening cluster ecosystems in developing economies.

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