Kiunsi, Wilson Benjamin
(2023)
Effect of ICT to Product Innovation and Business Performance in Small and Medium Manufacturing Industries in Tanzania.
Doctoral thesis, The Open University of Tanzania.
Abstract
The objective of this study was to determine the effect of ICT on product innovation and business performance in Small and Medium Manufacturing Industries (SMMIs) in selected industrial regions in Tanzania. Tanzania lacks studies related to ICT and product innovation. Primary data used in the study was collected through a structured questionnaire administered to senior personnel of each SMMIs in Dar es Salaam, Mwanza, Arusha, and Morogoro Regions. To enable the testing of the hypothesis of this study, Structural Equation Modelling (SEM) was used. Purposive sampling was used to research on specific attributes in the main population of SMMIs. Returned questionnaires and correctly filled formed a sample size of 474 SMMIs for the model used by IBM Amos version 26. The study found out that there is a significant improvement of using ICT on Product innovation and business performance in SMMIs in Tanzania. Also, it showed weaker improvement between ICT and business performance as mediated through product innovation. Furthermore, this study showed the Technology Acceptance Model (TAM) and Dynamic Capability (DC) theories in that the performance of SMMIs can be achieved through the combination and simultaneous application of ICT and Product Innovation capabilities. The study concluded that SMMIs require ICT and product innovation for better performance. Implying to policy makers that should strengthen the link between ICT use and innovations in general, with due enhancement of the business environment among SMMIs. This study recommends that SMMIs should integrate the use ICT and product innovation to improve their performance.
Keywords: ICT, product innovation, business performance, TAM, DC SMMIs
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