The influence of firm product differentiation experience on market participation among agro-processing MSMEs in Morogoro Municipality, Tanzania

Abstract

This study examined the influence of product-differentiation experience on market participation among agro-processing MSMEs in Morogoro Municipality, Tanzania.   The purpose of the study was to assess how firms’ product-differentiation experience affects their ability to participate effectively in markets. A quantitative research approach with a cross-sectional survey design was employed. Primary data were collected from 183 agro-processing MSMEs operating in the eight wards of the municipality. Questionnaires were administered to the respondents as the main data collection instrument. The questionnaire items were measured using a five-point Likert scale ranging from strongly disagree to strongly agree. The collected data was coded and analyzed using statistical techniques. Descriptive statistics such as frequencies and percentages were used to summarize respondents’ characteristics. Inferential analysis was conducted using ordinal regression to examine the relationship between product differentiation experience and market participation. The findings provide empirical evidence on how differentiation capabilities influence MSMEs’ competitiveness and market engagement. The study contributes to knowledge on MSME development and offers insights for policymakers and practitioners supporting agro-processing enterprises.