Local content in Tanzania: Are local suppliers motivated to improve?

Firms located in developing countries generally encounter difficulties with meeting the challenging standards posed by the oil and gas supply chain. It is against this background that the present study aims to reveal to what extent Tanzanian indigenous firms are ‘motivated’ to compete and close the performance gaps vis-à-vis corporate expectations in the petroleum industry. The willingness to share costs and allocate time for an Enterprise Developing Programme are examined. The study reveals that more motivated and well-connected firms blame the government and – to a lesser extent – foreign companies, whereas less motivated firms tend to hold themselves responsible for lack of competitiveness. These results run counter to theories about competitive motivation and catch-up, and therefore lead to interesting implications for each of the actors involved in the Local content dynamic in Tanzania.