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This study assesses the factors affecting adoption of E-Commerce among SMEs in
Tanzania taking the case of selected SMEs in Kinondoni Dar es Salaam. More
specifically, the study examines the extent to which the SME's economic state,
SME's own characteristics and behaviours, Technical infrastructure, and also socialcultural and legal factors affect SME's adoption of E-Commerce. The study adopted
a descriptive research design considering SMEs operating in Kinondoni district as
the case of the study. 100 SMEs took part in the study as the sample of the study.
The researcher adopted both random and purposive sampling because the selected
respondents possessed the required knowledge and information in answering
research questions of the study; the collected data was qualitatively and
quantitatively analysed by using SPSS and the obtained results were tabulated.
The study finds that four reviewed factors have a direct impact on adoption of ECommerce by SMEs. These aspects include SMEs own characteristics or behaviors,
the SME's economic conditions, Technical infrastructure, and social-cultural and
legal challenges. The findings reveal that on the SME's economic condition, the
resources, cost of acquisition, maintenance cost, and even the nature of product
prices are the main challenges. Furthermore, regarding the SME's own characteristics
and behaviours, the challenges were found to be in management's support, perception
towards E-Commerce, technological competencies, and perceived securities. In the
technical aspect, the study further reveals challenges in accessibility of internet,
condition of the existing internet infrastructure, and technical support. Support from
the government, Taxation issues, intellectual property issues, and level of awareness
were the social-cultural and legal factors that were identified.
The study recommends that, organizations need to consider these four factors very
carefully and where possible, effective strategies need to be developed to overcome
them. The study further recommends that organizations need to have enough budgets
and qualified teams to successfully overcoming these. Also, owing to the study’s
limitations, it recommends areas that need further research. |
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