Inclusiveness of Tanzania's small-scale jewellers into global value chains: Exploitation of artisanal industrial clusters
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Sama, Hamisi K. Article Inclusiveness of Tanzania's small-scale jewellers into global value chains: Exploitation of artisanal industrial clusters Modern Supply Chain Research and Applications Provided in Cooperation with: Emerald Publishing Limited Suggested Citation: Sama, Hamisi K. (2024) : Inclusiveness of Tanzania's small-scale jewellers into global value chains: Exploitation of artisanal industrial clusters, Modern Supply Chain Research and Applications, ISSN 2631-3871, Emerald, Bingley, Vol. 6, Iss. 2, pp. 146-164, https://doi.org/10.1108/MSCRA-10-2023-0044 This Version is available at: https://hdl.handle.net/10419/314923 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/
Inclusiveness of Tanzania’s small-scale jewellers into global value chains: exploitation of artisanal industrial clusters Hamisi Kileo Sama Department of Procurement and Supplies Management, College of Business Education, Dar-es-Salaam, Tanzania Abstract Purpose –In developing countries like Tanzania, gems and jewellery industry mainly consists of disintegrated and unstable micro and small workshops which operate in a way that misalign value addition processes. This study is aimed to bridge gap by focussing on exploitation of industrial clusters in social normalisation and economic resilience to developing countries. The world economic shocks has been not only individually experienced but also globally shared while disrupted lives across all countries and communities and negatively affected global socio-economic growth. Design/methodology/approach –Furthermore, the explorative design was adopted in this study in order to explore needs of respondents, and with the aim to direct the study towards a descriptive design. The sample frame consists of participants in gems and jewellery activities in Tanzania whereby sample was drawn from Dar es Salaam and Arusha. Semi-structured interview was used to collect quantitative data to establish evidence of Tanzanians’SSJs linked to global value chains (GVCs). Findings –Results revealed the benefits of exploitation of artisanal industrial clusters to Tanzanians’SSJs when linked to global value chains (GVCs). Findings of the study demonstrate the importance of artisanal industrial clusters in facilitating Tanzanians’SSJs to access GVCs. Further, insufficient education, trust and social protection directly affects inclusive GVCs, inferring that the impact of artisanal industrial clusters on inclusive GVCs in social normalisation and economic resilience. Research limitations/implications –Study findings reveals shortcomings in existing regulatory framework of linking Tanzanians’SSJs to artisanal industrial clusters, for improvements to better support the inclusiveness in GVCs. Findings of this research invite interventions on institutional capabilities and entrepreneurial competencies to enhance the capabilities of small-scale jewellers (SSJs). Like other studies, this study involved cross-sectional data, limit targeted study population as representative of SSJs in industrial clusters and GVCs in economic crises at limited time. Practical implications –The study findings makes important practical contributions to the Tanzania’s SSJs by examining mediating role of artisanal industrial clusters hence informing policymakers of mining sector MSCRA 6,2 146 © Hamisi Kileo Sama. Published in Modern Supply Chain Research and Applications. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/ legalcode Competing interests: The author declares that no competing interests exist. Authors’contributions: Corresponding author was the researcher of the original dissertation from which this article is substantially derived. Ethical considerations: This article followed all ethical standards for research without direct contact with human or animal subjects. Funding information: The research was conducted without any assistance regarding funding. All fees were paid by the author. Data availability: Data sharing is not applicable to this article; however, upon request for the required data, it will be made available to the Journal. Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any affiliated agency of the author, and the publisher/s. The current issue and full text archive of this journal is available on Emerald Insight at: https://www.emerald.com/insight/2631-3871.htm Received 13 October 2023 Revised 4 January 2024 Accepted 5 February 2024 Modern Supply Chain Research and Applications Vol. 6 No. 2, 2024 pp. 146-164 Emerald Publishing Limited 2631-3871 DOI 10.1108/MSCRA-10-2023-0044
how to improve accessibility on GVCs by focus on offering great institutional capabilities and entrepreneurial competencies. These findings will help SSJs and policy makers to get better understanding of the relationships in exploitation of artisanal industrial clusters when accessing GVCs. Therefore, they can make better decisions on implementing artisanal industrial clusters as well as management accessing GVCs, so that SSJs will attain the best possible performance. Social implications –This emphasises the importance of community empowerment in the GVCs process through artisanal industrial clusters. Study findings indicate the influence of industrial relations to social dynamics which are previously inadequately addressed and scantly researched. In actual fact study propose initiatives that ensure local communities benefit socially from the integration of SSJs into GVCs through artisanal industrial clusters. Findings suggest local communities that take into account inter-sectionality of artisanal industrial clusters and inclusive GVCs, by considering how factors like education, trust and social protection status intersect to influence the social inclusiveness of SSJs. Originality/value –There is limited evidence of linking Tanzanians’SSJs to GVCs in social normalisation and economic resilience and few researchers have explored this topic. This article leverages exploitation of industrial clusters in normalisation and economic resilience to developing countries such as Tanzania as way of improving shared prosperity, sustainability, inclusive growth, cohesion, value chain upgrading and financial inclusion to SSJs. Keywords Global value chains, Inclusiveness, Artisanal industrial clusters, Small-scale jewellers Paper type Research paper 1. Introduction Tanzania has a rich mineral resource base in terms of gold, diamonds and a wide variety of coloured gems (Phillips et al., 2001;Lange, 2006). With its abundant resources in precious and semi-precious stones, Tanzania has a significant advantageous position in a gemstone-based global trade system (DeLeon, 2008;Macfarlane et al., 2003). However, like most other African countries, so far Tanzania has been hardly affected by economic crises thus continuously unfit to exploit global value chains (GVCs), either in the field of lapidary or jewellery due to the fact that value chain currently initially was not operate in a way that fosters value addition (Kowalski et al., 2015;De Backer and Miroudot, 2014). Even so, there is insufficient evidence on current capability on exploitation of gems and jewellery industry in Tanzania, specifically on how explain nexus between GVCs and inclusiveness of small-scale jewellers (SSJs) through cluster development to support sustainable development goals. In this Lawson and Chowdhury (2022) pointed out that artisanal and small-scale mining can have both positive and negative impacts in relation to the Sustainable Development Goals (SDGs). The economic crises have been not only individually experienced but also globally shared. Economic crises disrupted lives across all countries and communities and negatively affected global socio-economic growth caused an unprecedented global economic impact at an astonishing rate, leading to rapid economic downturns in many countries (Pak et al., 2020; Rahman, 2020). Initially, the socio-economic effects of the virus were expected to be shortterm supply issues as factory output fell because widespread social-distancing initiatives and sharp contractions of GVCs are observed. Estimates so far indicate the virus reduced global economic growth to an annualised rate of 4.5%6.0% in 2020, estimates indicate that 95 million people may have entered into extreme poverty in 2020 with 80 million more undernourished compared to pre-pandemic levels (Jackson et al., 2020). In this manner, there is a need to support businesses that are struggling as a result of the socio-economic fallout associated with the economic crises (Nicola et al., 2020;Balde et al., 2020). According to Gereffi (2015), GVCs describe networks of functionally interrelated producers and buyers that are engaged on a global scale in processes of value creation as products pass across borders and between different actors in the chain. Empirically, Zeng (2010) hinted that policy makers, business people and scholars continue to debate on China’s economic success, but one thing is clear: the performance and presence in GVCs through industrial clusters that emerged after the country’s reforms are without doubt important engines of China’s remarkable development. Therefore, for many countries, especially lowExploitation of artisanal industrial clusters 147
income countries, the ability to effectively insert themselves into GVCs through industrial clusters is a vital phenomenon for attainment of social and economic development United Nations Industrial Development Organization (UNIDO) (2010). Despite of advantages in terms of natural resource endowments, low labour costs and growing consumer markets, Tanzania’s SSJs were unable to access GVCs, compete successfully and capture the gains of industrial clusters even in pre-pandemic (Kuah, 2002; Mbowe et al., 2016). Several researchers define entrepreneurial competencies and institutional capabilities as a higher level construct that can builds on the interaction of resources at any socio-economic stage. For instance, Ihucha (2014) hinted that, exported rough Tanzanite despite of being found only in Tanzania, it has generated about 250,000 jobs in Jaipur city of India compared to 119 jobs created in Tanzania. This mismatch between high availability of gems and jewellery versus low productivity and output has traditionally been attributed to SSJs-specific constraints preventing access to GVCs (Damodaran, 2010;Lawson and Chowdhury, 2022). Generally, gems and jewellery industry has also sparked the interest of international and national policy-makers as they seek to improve economy (Mwaipopo et al., 2004;Phillips et al., 2001). This attention from policy makers in economic crises have paved way for the researcher of this to focus in micro and small industrial clusters and its effectiveness into inclusive development (Kaabinezhad et al., 2014;UNIDO, 2010). But, in developing countries like Tanzania, gems and jewellery industry mainly consists of disintegrated and unstable micro and small workshops (Agarwal et al., 2018;Donahue, 2018). Often, however, their development potential remains untapped, as SSJs operate in isolation, locked into uncompetitive and incompetent value chain patterns (Belussi and Sedita, 2010; Turyahikayo et al., 2018). There has been considerable interest and activities in industrial clustering and concomitant relation to significant economic and sustainable development in recent times (Jevwegaga et al., 2018). Also, Setyoko and Kurniasih (2022) and Meramveliotakis and Manioudis (2021) mention, a small or even a medium business will find it difficult to operate autonomously in economic crises with developed business, in contrast to a net of businesses. Most researchers agree on the benefits that may arise for the micro and small industries such as SSJs, if they unify powers in industrial cluster can gain productivity and competitive advantage in domestic and international level (von Weltzien Høivik and Shankar, 2011; Makedos, 2014). Developing such a joint platform is often crucial in jump starting into entrepreneurial competencies on GVCs in developing countries (Asian Development Bank and Asian Development Bank Institute, 2015;D’Annunzio et al., 2015). Numerous authors in literature of education, trust and social security recognise importance of exploitation of micro scale industrial clusters and GVCs. For instance, effect of GVC involvement along two dimensions –GVC participation and GVC position –on innovation performance in China’s manufacturing industries was examined by Yang et al. (2020), while Fuerst (2010) consider GVCs and local cluster development in a perspective on domestic small enterprises in the 3D-animation industry in Colombia; an outlook of Humphrey and Schmitz (2000) finds support for the governance and upgrading in linking industrial cluster and global value chain research; but Giuliani et al. (2005) suggest an upgrading in GVCs on lessons from Latin-American clusters. So far there has been limited debate focussing in economic crises normalisation and economic resilience on business capabilities and opportunity exploitation of industrial clusters. This invite more studies to focus on inclusiveness of SSJs into GVCs, and therefore current study has bridging practical and theoretical gap by focussing on exploitation of artisanal industrial clusters (AICs) in crises normalisation and economic resilience to developing countries to support sustainable development goals. MSCRA 6,2 148
Remainder of this paper is organised in the following way, the next section present the literature review, which is followed by a sub-sections of characterisation of SSJs into inclusive GVCs, effect of AICs to inclusive GVCs, mediation of AICs on SSJs dimensions and inclusive GVCs. Section three presents the research methods, which includes the method followed aim and study setting, research design, characteristics of participants and sampling procedures, and mode of data collection used in this paper. Subsequently, section four describes the analytical procedures through presentation of descriptive analysis and relationship between study variables and the results from mediation effects of AICs towards inclusive GVCs. Section five focus on results and discussion, while the final section provide the conclusion, study theoretical and empirical implications and ended with study limitations. 2. Literature review When generating valuable insights of AICs in GVCs studies to date leave a number of issues uncovered. This paper intends to shed more light on SSJs’reactions to industrial clusters on inclusive GVCs in crises normalisation and economic resilience in developing countries to support sustainable development goals. The conceptual framework presented here is therefore a literature review informed by a variety of types of resource. It aims to touch upon every aspect related to SSJs and industrial clusters on inclusive GVCs in mapping comprehensive perspective. Economic crises normalisation and economic resilience to developing countries, however, still a work in progress, but form a grounding upon which further development of SSJs and industrial clusters on inclusive GVCs can be based. It has been noticed that despite all benefits global trading systems may have, accessing inclusivity of GVCs by individual SSJ is a markedly difficult task that cannot be easily accomplished (Carrigan et al., 2017;Cusolito et al., 2016). In fact, a growing body of literature has looked at industrial clusters as a distinctive unit in the analysis of economic development, and a consensus exists on seeing inclusive GVCs as vital component in global–local nexus of development is increasingly. Challenging inclusive GVCs craft necessity of coping with both domestic and international competitors; therefore inclusion of SSJs in GVCs opens new opportunities for profits and expansion of trade horizon; but on the other hand, exposes SSJs to risks previously shielded by market boundaries and geographic distances. A SSJ interplays between entrepreneurial competencies and institutional capabilities on inclusive GVCs and industrial clusters. However, economic crises normalisation and economic resilience to developing countries of SSJ, industrial clusters and inclusive GVCs is present need for current research and practice. At any stage, therefore, an economic crises normalisation and economic resilience to developing countries is seen as a snapshot of a developing work, and as a means of communicating the various elements and variables to be analysed, not an attempt to accurately portray entirety of causal and effect relationship between SSJs, industrial clusters and inclusive GVCs. Although there may be gaps in a framework, however, attempting to organise SSJs and industrial clusters into inclusive GVCs aspects into a single model is an important step in identifying those gaps. Thereby, study, aims at identifying and improving evidence from reviewed literatures to support transformation and better integration of SSJs into inclusive GVCs through exploitation of industrial clusters in economic crises normalisation and economic resilience to developing countries to support sustainable development goals. Literatures of current study shows necessity for inclusion of SSJs in inclusive GVCs in economic crises normalisation and economic resilience to developing countries is evident; however, but there is still question of how to achieve entrepreneurial competencies and institutional capabilities. Correspondingly, is set to portray: what happens when SSJs’ entrepreneurial competencies are inserted into inclusive GVCs through exploitation of industrial clusters? Does it imply opportunity or threat when SSJs’entrepreneurial Exploitation of artisanal industrial clusters 149
capabilities are linked into inclusive GVCs through exploitation of industrial clusters? But the general aim of this study therefore, intends to explore and examine how exploitation of small industrial clusters may influence inclusiveness of gems and jewellery industry into inclusive GVCs in economic crises normalisation and economic resilience to developing countries. Main assumption of research question is that there must be something quite unique about inclusiveness of SSJs into inclusive GVCs, which gives remarkable propensity to exploit industrial clusters endeavours in the midst of education, trust and social security of Tanzanian SSJs’. 2.1 Characterisation of small-scale jewellers into inclusive global value chains The study attempts to understand problems faced by gems and jewellery artisans (GJAs) in accessing inclusive GVCs to support sustainable development goals. The study reviews relevant academic work relating to determinants of inclusive GVCs and exploitation of industrial clusters in Tanzania. This research will also attempt to study the broad determinants of small businesses’inclusiveness into GVCs in the context of social cultural values and competitive capabilities of AICs in Tanzania. The study also focuses on the need to have exploitation of AICs in developing countries by selecting Tanzania as a sample population to arrive at meaningful policy alternatives. Studies of Kowalski et al. (2015) and De Backer and Miroudot (2014) noted that like most other African countries, so far Tanzania has been unable to exploit GVCs, either in the field of lapidary or jewellery due to the fact that value chain currently does not operate in a way that fosters value addition (Kowalski et al., 2015;De Backer and Miroudot, 2014). In specific incidences, Cicea et al., 2019 and Lins et al. (2017) show that there is a relationship between social protection and trust in SMEs such as SSJ and business performance at different stages of business growth, supported by Estevez-Abe et al. (2001) and Shinozaki and Rao (2021) argue the existence of a positive relationship between the characteristics of SSJ with business performance. The study also questions; why the gems and jewellery artisans in developing are excluded into GVCs? AICs, as used in this study can be defined as sectoral and geographical concentration in gems and jewellery industry of GJAs, faced with common opportunities and threats which can give rise to Inclusive GVCs. Generally, this study is aimed to explore and examine how exploitation of small industrial clusters may influence inclusiveness of gems and jewellery industry into GVCs in Tanzania. Too often, inclusive GVCs fail to include developing economy –in context of education, trust and social security and GJAs. However, at present, there is scarce comprehensive review of the effect SSJ as measured by education, trust and social security in exploitation of GVCs in economic crises in Tanzania. Based on empirical evidences described above, it can be hypothesised that: H1a. There is a significant negative relationship between the education of SSJ and inclusive GVCs to GJAs. H1b. There is a significant negative relationship between the trust of SSJ and inclusive GVCs to GJAs. H1c. There is a significant negative relationship between the social protection of SSJ and inclusive GVCs to GJAs. 2.2 Effect of artisanal industrial clusters to inclusive GVCs UNIDO (2004) defines clusters as a sectoral and geographical concentration of enterprises that produce and sell range of related or complementary products and thus face common challenges and opportunities. In this study, artisanal industrial cluster is a geographically MSCRA 6,2 150
proximate group of interconnected GJAs and associated institutions, linked by commonalities, collective efficiency and complementarities with active chain of value addition, share specialised infrastructure with common objectives, opportunities and challenges. Generally, industrial clusters are natural manifestation of specialised competencies, supporting infrastructure and networks to enhancing productivity in a spatially bounded area. A synergy of inter-firms networks, rivalry and need for optimise multiple conflicting objectives while minimising constraints, affect the value chain environment in industrial clusters. The literatures from Gereffi and Lee (2016) suggests that industrial clusters matter for economic inclusiveness because, first, the agglomeration of productive activities generates not only economies of scale and scope external to individual firms but also internal to the cluster, and, second, it facilitates local collective efficiency by cluster individuals, firms and institutions to address common problems based on their interdependence. According to Mezzadri (2014) clusters are connected to the outside world by value chains which link individual firms through local, regional, national, and global channels, from raw material extraction to retail selling and finally consumers. Moreover, once forged, this inter-firms network by its knowledge transfer process creates the artisan clusters’ capacity to upgrade themselves in the value chain processes, after observing higher rates of returns are accrued as one moves up the value chain ladder. In summary, the industrial cluster literature highlights the importance of cluster governance operating horizontally between cluster members and institutions in local contexts while vertically with GVCs that links global lead firms to both first-tier and local suppliers in international production networks. As explained by Skokan (2005) that industrial clusters develop over time; they are not a phenomenon that just appears or disappears overnight. In addressing formation of AICs, many researchers recognise typical locational factors in agglomeration as materials availability, climate, university research, external economies, local division of labour and influence of social structures on the nature of competition (Capozza et al., 2018;Gordon and McCann, 2013;Boari, 2001). However, they all agree that there is no general law on how clusters are emerging. Among the most frequent sources of cluster development are specific aspects of the location, specific business environment conditions, related clusters and the long-term impact of specific entrepreneurial decisions by private or public sector leaders (Ketels and Memedovic, 2008;Ketels, 2004). Literatures of this study shows how the need for inclusion of SSJs in inclusive GVCs in economic crises normalisation and economic resilience to developing countries is evident; however, but there is still question of how to achieve entrepreneurial competencies and institutional capabilities. Correspondingly, is set to portray: what happens when SSJs’ entrepreneurial competencies are inserted into inclusive GVCs through exploitation of industrial clusters? Does it imply opportunity or threat when SSJs’entrepreneurial capabilities are linked into inclusive GVCs through exploitation of industrial clusters? But the general aim of this study therefore, intends to explore and examine how exploitation of small industrial clusters may influence inclusiveness of gems and jewellery industry into inclusive GVCs in economic crises normalisation and economic resilience to developing countries to support sustainable development goals. Main assumption of research question is that there must be something quite unique about inclusiveness of SSJs into inclusive GVCs, which gives remarkable propensity to exploit industrial clusters endeavors in the midst of education, trust and social security of Tanzanian SSJs. Against the above assumptions, the study hypothesises: H2. There is a significant positive relationship between AICs and inclusive GVCs. Exploitation of artisanal industrial clusters 151
2.3 Mediation of artisanal industrial clusters on small-scale jewellers dimensions and inclusive global value chains In summary then, economic crises normalisation and economic resilience to developing countries in this study map step-by-step causal and effect relationship through, firstly, providing a basis from of interpret causal relationship of SSJs and industrial clusters into inclusive GVCs and form a coherent whole from further literature in economic crises normalisation and economic resilience to developing countries. Secondly, structuring evaluation process on causal effect relationships when assess SSJs and industrial clusters towards inclusive GVCs in economic crises normalisation and economic resilience. Thirdly, integrating various factors and indicators involved in designing on direction of relationship of SSJs and industrial clusters on inclusive GVCs in economic crises normalisation and economic resilience to support sustainable development goals. And fourthly, by enabling articulation of the study findings while mapping magnitude of relationship between variables and indicators of SSJs and industrial clusters for inclusive GVCs in economic crises normalisation and economic resilience to developing countries. Henceforth, objective of the study was to establish the driving forces behind the effects ofAICstoinclusiveGVCstoSSJsineconomic crises. The study had postulated that relationship between SSJ and inclusive GVCs to GJAs in economic normalisation and economic resilience in terms of application of industrial clusters is thinly applied even in economic crises as a result developing countries are highly under-represented in GVCs. In such a scenario, the education, trust and social security of Tanzanian SSJs are in doubt. The argument of this study starts from the position that discussion of SSJs, industrial clusters and inclusive GVCs has tended to conflict ideas arising from quite different perspectives, which are sometimes complementary and sometimes contradictory. The indicators of AICs (entrepreneurial competencies and institutional capabilities) were used to test mediation effect to SSJ dimensions on inclusive GVCs. In establishing mediation effect of AICs on relationship between SSJ on Inclusive GVCs in terms of, the following hypotheses were tested. H3a. AICs mediate the relationship between education of SSJ and exploitation inclusive GVCs. H3b. AICs mediates the relationship between trust of SSJ and exploitation inclusive GVCs. H3c. AICs mediates the relationship between social protection of SSJ and exploitation inclusive GVCs. 3. Methods 3.1 Aim and study setting Since literatures on inclusiveness of SSJs into GVCs are not extensive or specific enough to exploit industrial clusters, a quantitative study is needed to be conducted. This study looks into the role of inclusiveness of SSJs into GVCs through exploitation of industrial clusters with accompanying critical realist ontological and epistemological assumptions. The approach seeks to obtain knowledge of what entrepreneurial competencies and institutional capabilities exist and to establish how we can identify the relative significance of existing competitive and entrepreneurial competencies in economic crises normalisation and economic resilience to developing countries. As stated, the purpose of this study is to create a better understanding of the interplay between inclusiveness of SSJs into GVCs and exploitation of industrial clusters at national, regional and global level in the social and economic context of Tanzania. This entails a MSCRA 6,2 152
detailed study on understanding of global and local context factors influencing inclusion of SSJs into GVCs, the processes of inclusion at local level to global level and ensuing change resulting from inclusion process. Such a focus leads to the adoption of interpretive stance on inclusiveness of SSJs into GVCs, which seeks to uncover truth by understanding the phenomena in their real-life context. A quantitative approach through cross sectional was, therefore, used to describe the inclusiveness of SSJs in GVCs through exploitation of industrial clusters in economic crises normalisation and economic resilience to developing countries. 3.2 Research design The research design applied in this study is a combination of exploratory and descriptive design. As Bless and Higson-Smith (2000) stated that the main purpose of an exploratory research is to gain insight into a situation, phenomenon, community or a person. Nonetheless, in this study exploratory research design is conducted with goals intended to: (1) determine scope, magnitude, problem or behaviour of SSJs’entrepreneurial competencies and institutional capabilities towards inclusive GVCs through exploitation of industrial clusters; (2) generate some initial ideas about drivers, opportunities and constraints of industrial clusters on inclusion of SSJs in GVCs, or (3) test the practicality of undertaking a more extensive study regarding weaknesses and threats of SSJs when linked into GVCs through industrial clusters in economic crises normalisation and economic resilience to developing countries support sustainable development goals. Furthermore, the explorative design was adopted in this study in order to explore the needs of respondents, and with the aim to direct the study towards a descriptive design. 3.3 Characteristics of participants and sampling procedures The sample frame consists of participants in gems and jewellery activities in Tanzania. Moreover, the sample was drawn from the Tanzania in sampled two cities Dar es Salaam and Arusha because they are dominant regions of Tanzania in terms of economic activity. The study data were collected cross-sectional data from 294 small-scale jewelleries. By selecting a geographically limited sampling frame has the advantage of guaranteeing that all respondents sampled share the similar socio-cultural behaviours and institutional context. Thus, all respondents contained within the sample are likely to face similar levels of scrutiny insofar as they conform to the same political, socio-economic and environmental demands and hence can be analysed alike. Sampling designs can be classified as either probability or non-probability sampling. Probability sampling is undoubtedly the most frequently used method and involves random selection of elements, where each element has an equal probability (chance) of being included in that sample. While in most business and management studies use probability sampling, stratified random sampling was used to select study samples. 3.4 Mode of data collection In order to address research objectives, a self-administered survey questionnaire was developed to collect data from the selected from key policymaking institutions, i.e. the Ministry of Trade and Industries, SSJs, precious stones miners, brokers and dealers/ processors in this cross sectional study. A self-administered survey questionnaire and closed ended was chosen as the best suited data collection method in terms of time saving and enable respondents to give relevant choice since different options were provided. This method of data collection is best suited for this study because it gives freedom to respondents to furnish truthful opinions since there was no one to challenge their answers as it is in the case of Exploitation of artisanal industrial clusters 153
but rather through the specific mediatory role of AICs. Another academic contribution is that cross section surveys were conducted by matching gems and jewellery artisans and AICs to minimise social and economic pains in economic crises. This study was conducted in Tanzania as developing country, where the economic crises have been a clinical and economic danger, gems and jewellery artisans are facing critical exclusion from value chains. Thus, this study set to examine how AICs can be a catalyst to SSJ towards Inclusive GVCs in economic crises. This study is an addition to the already existing body of knowledge about Inclusive GVCs (Cusolito et al., 2016;Asian Development Bank and Asian Development Bank Institute, 2015;De Backer and Miroudot, 2014;Yang et al., 2020). In terms of prospect theory accentuate the industrial clusters normalisation and economic resilience to developing countries, based on defining education, trust and social protection in economic crises to support sustainable development goals. Also, study findings add value to the theory by demonstrating how quantitative analysis of AICs can provide mediating effect of AICs on SSJ and inclusive GVCs in economic crises. By adopting the AICs, this study accrue a more in-depth understanding of SSJ responses to the characteristics of SSJ when interacting with GVCs and further insights into the underlying reasons for normalisation and economic resilience in economic crises. 6.2 Practical implications In response to growing concerns over the global economic impact of the economic crises, this study focus on the use all appropriate policy tools to sustain economic growth in economic crises. Study reflects largely on inability to access GVCs perpetuated by insufficient dynamic education, trust and social security in economic crises normalisation and economic resilience. In this context, inclusion of industrial clusters in GVCs can be a key policy priority to Tanzania and developing countries in general. In this way, it contributes to literature in several key ways to support sustainable development goals. Firstly, empirical evidence of the extent and sources of inclusion of industrial clusters in GVCs that has faced significant domestic policy challenges were provided, hence generated study findings can provide valuable lessons for similar contexts globally to support sustainable development goals. Secondly, industrial clusters are considered as important engine for growth of employment, economic and opportunities for innovation in economic crises normalisation and economic resilience in developing countries to support sustainable development goals. Thirdly, there is also a case regarding the focussing on dynamics of GVCs in economic crises normalisation and economic resilience as opposed to abstract macroeconomic management. Fourthly, study on inclusion of industrial clusters in GVCs provides a conceptual framework for rethinking and refocussing economic policy in economic crises normalisation and economic resilience that will help policymakers to set priorities and get optimum impact out of limited resources. Fifthly, study invites the need of local policy to be aligned with, and contribute to, a country’s broader development objectives in economic crises normalisation and economic resilience to support sustainable development goals. 6.3 Study limitations Study received guidance from an experienced researcher in all necessary steps towards its finalisation, but there were certain observed limitations. Like other empirical studies, this study had some limitations, notwithstanding the researcher’s attempts to follow valid and reliable research procedures, using mono method to gather data from a large and representative sample with a high response rate. This limit targeted study population as representative of SSJs in industrial clusters and GVCs in economic crises at limited time of approximately three months. This may affect generalisation of study findings, however some steps were undertaken, to reduce effects of these limitations towards its generalisation. MSCRA 6,2 160
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