Factors That Affect e-Commerce Adoption in Tanzanian SMEs

Much of the current debate in least developing economies has been centred on ICT status. There has been limited knowledge on E-Commerce adoption by Small and Medium Enterprises (SMEs). As for those who have reported on it, they tend to either assess the ICT situation in the country; examine how ICT is being integrated into SMEs' business culture; examine differences in quantity or quality of Internet access points and their use and users; or as it is often the case more recently investigate the use of mobile telephony by SMEs. These studies however fail to highlight the relevant contextual and organizational factors that affect E-Commerce adoption in least developing countries. This study investigates contextual and organizational factors that affect E-Commerce adoption by SMEs in Tanzania. The study is primarily quantitative, using a questionnaire and follow up interviews with key members of the sample group. The results show that although SMEs in Tanzania are aware of the benefits derived from the use of E-Commerce; very few have converted this awareness to actual adoption. 58% of the SMEs in our sample do not have any form of E-Commerce; 17% are in the early adopters phase and only 24% have E-Commerce institutionalised in their businesses. The study concludes that for Tanzanian SMEs to adopt E-Commerce, organisational factors must be addressed; for them to institutionalise E-Commerce there must furthermore be a conducive and supporting environment from the government and supporting industries. This includes inter alia, national ICT infrastructure; and government policies that support E-Commerce adoption.