Is Market Development an Effective Strategy for Enhancing Performance? A Study of SME Suppliers in the Zambian Mining Sector

This study investigates whether market development enhances performance among Small and Medium Enterprises (SMEs) mining suppliers in Zambia, a country heavily reliant on copper mining. Therefore, research examines the vulnerability of SMEs whose survival depends on mining contracts and explores market development as a resilient strategy to reduce suppliers' dependency on a single market. The research employed a qualitative research design. Data were collected from 30 SME suppliers in Zambia’s Copperbelt and North-Western regions and analyzed using NVivo 11 to identify patterns linking market development strategies to SME performance outcomes. The results reveal that expanding into new market segments and geographic areas enhances performance through diversifying revenue streams, reducing risk and improving competitiveness. However, some barriers constrain the effectiveness of market development among the suppliers. Barriers include overreliance on slow-paying mining clients, financial constraints, technological challenges, and fierce competition in new markets where established firms already enjoy brand recognition and loyalty. The study offers practical insights for policymakers and practitioners on market development as a resilience strategy that can improve firm performance in resource-dependent economies. The study’s regional and sector-specific focus limits the generalizability of its findings to other regions and industry sectors; however, it provides a foundation for comparative analysis. Future research should therefore broaden its scope to include suppliers from diverse areas and sectors. The study clarifies the inconsistent findings on market development and SME performance by providing empirical evidence. It also extends Ansoff Growth Matrix and Resource Dependence Theory to a resource-dependent, under-explored Sub-Saharan context. Therefore, it offers practical insights on market development as a resilience strategy that can improve firm performance.