Assessment of Effect on ICT Adoption in Small Medium Enterprises Performance: A Case of Tanga District.

Shaitu, Hassan (2022) Assessment of Effect on ICT Adoption in Small Medium Enterprises Performance: A Case of Tanga District. Masters thesis, The Open University of Tanzania.

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Abstract

The study on impact of ICT adoption on SMEs performance was conducted in Tanga urban. The study intended to assess the factors affecting adoption of ICT, the effect of ICT adoption to SMEs performance, examine the status of ICT adoption in SMEs performance and the challenges facing adoption of ICT in performance of SMEs. The study was guided by Technology Acceptance Model (TAM) developed by Davis in 1989. The study employed quantitative research approach applying a descriptive research design. Total respondents were 100 who included SMEs owners and leaders who were selected through purposive and simple random sampling techniques. Data were gathered through Questionnaires and interviews. Statistical Package for Social Sciences (SPSS) 20th version tool coupled with descriptive analysis technique was used in data analysis. The study findings revealed that majority of the respondents use ICT software such as Tigo pesa, M-pesa, Airtel money and internet in ordering product, processing transaction and extending market share and profit. In deed the adoption of ICT in SMEs positively affect the performance of SMEs as it increase access to market, increase productivity and improve sales. On the other hand the study findings revealed that majority 61(61%) of the respondents use mobile phone in advertising their products and few use Internet. However, lack of ICT knowledge, financial constraints, unreliable power; lack of ICT training coupled with inadequate internet services are emerged challenges that hinder effective and the actual usage of ICT SMEs. The study recommended that the SMEs should install continued power supply and provide regular training of ICT use so as to increase the rate of ICT use among SMEs. Keywords: Information and Communication Technology, Small and Medium-Sized Enterprises

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