The institutional environment is a critical determinant of business viability in emerging economies. In the Tanzanian context, a detailed understanding of how firms perceive and navigate formal and informal institutional constraints over time remains underexplored. This study aims to analyse how Tanzanian business leaders perceive institutional factors affecting firm viability, and to identify the adaptive strategies they employ to mitigate these challenges. A qualitative, longitudinal design was employed, utilising in-depth, semi-structured interviews with a purposively sampled cohort of 28 senior executives from diverse sectors. Data were analysed using a reflexive thematic analysis approach. A predominant theme was the critical, yet often obstructive, role of sub-national government entities, with over two-thirds of participants describing local-level bureaucracies as the most significant impediment to operational planning. Firms developed sophisticated, informal relational networks to circumvent these formal institutional hurdles. Business viability is contingent upon a firm's capacity to develop parallel, informal systems to offset formal institutional weaknesses, suggesting a persistent decoupling between de jure policies and de facto business practice. Policymakers should prioritise streamlining sub-national regulatory coherence and transparency. Business support programmes should focus on enhancing strategic relational competencies alongside conventional managerial training. institutional theory, business environment, qualitative research, strategic adaptation, emerging markets This paper provides a novel, longitudinal perspective on institutional navigation, introducing the concept of 'relational arbitrage' as a critical mechanism for survival and growth within complex African business landscapes.
Kavishe et al. (Mon,) studied this question.
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