Promoting Sustainable Industrialization in Tanzanian Agro-Processing Sector: Key Drivers and Challenges

Purpose: The main purpose of the paper is to address the key drivers and challenges to sustainable industrialization in Tanzania. The authors explore how attention to these challenges and drivers can enhance sustainable industrialization. Design/Methodology/Approach: This paper uses a resource-based view theoretical lens to inform the author on the key drivers and challenges to sustainable industrialization. A mixed-method research design was adopted and data were drawn from 150 respondents in agro-processing industries from five regions in Tanzania selected by cluster and random sampling technique. Questionnaires, key informant interviews, and documentary reviews were used in data collection. Regression analysis and thematic data analysis strategy were adopted whereby quantitative data gathered were analysed by regression analysis using SPSS version 23 and qualitative data analyzed by content analysis using MAXQDA 2020 software. Findings: The main findings based on the resource-based view indicated that the key drivers include; physical, human, organizational, financial and technological resources which have a positive influence on sustainable industrialization in Tanzania. The key challenges to industrialization in Tanzania include; a lack of long-term loans for investment in industrialization, difficult government regulations and taxation, poor agricultural technology, poor infrastructure, and lack of compliance with standards to mention just a few. Research Limitation: The study focused on the key drivers and challenges to sustainable industrialization in Tanzania based on agro-processing industries. Practical Implication: These findings contribute to the existing knowledge in the sector and insist on stakeholders’ participation in the improvement of the physical, human, organizational, financial and technological resources to reach sustainable industrialization. Social Implication: Solving the identified challenges in the sector will help in improving people's livelihood, the country’s economy and employment in general. Originality/Value: The main contribution is the improvement of our knowledge about the drivers and challenges to sustainable industrialization. Furthermore, the study contributes to the extension of RBV theory by adding two more variables obtained from the literature.