Determinants of Competitive Advantage in the Textile and Apparel Industry in Tanzania: The Application of Porter’s Diamond Model

This study explores the magnitude of the key attributes underlying competitive advantages in the textile and apparel industry in Tanzania by using Porter’s Diamond Model (PDM). The sampling design used in this study is non-probability and data were collected from 204 respondents in three regions; namely, Dar es salaam, Arusha and Mwanza. The estimated results from Factor Analysis, Principal Component Analysis and Structural Equation Modeling support strongly the relevancy of the Porter’s Diamond model in enhancing firm competitive advantage in the textiles and apparel industry in Tanzania. The two most important factors on competitive advantage of the textiles and apparel industry are demand conditions and; related and supporting industries.