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This study analyses the processes through which business networks are constructed and maintained by manufacturers in the rapidly growing city of Mwanza, Tanzania. Emphasis is placed on identifying and describing the key conventions, norms, routines, understandings, identities, trust mechanisms, and sources of power managers and entrepreneurs use in pursuit of financing, a better reputation, and novel information. The findings demonstrate some of the limitations on transactioncost based explanations for the development of industry networks, highlight the importance of trust and power in shaping interfirm relations, and provide support for more agencycentered approaches to studies of industrialization in East Africa.
James T. Murphy (Wed,) studied this question.