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 examine how firms’ experience with
product differentiation 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
across the municipality's eight wards. Questionnaires were administered to the respondents as the main data collection
instrument. The questionnaire items were measured using a binary scale. The collected data were 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.