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

Abstract

ICT play a significant role in improvement of Small Medium Enterprise performance in Tanzania as other countries across the global. However the status of ICT use in business limited into the use of mobile phone for business transaction due to limited knowledge on ICT use among SMEs and little is known about effect of ICT adoption in Small Medium Enterprise (SMEs).  This study focused on the assessment of effect of ICT adoption in SMEs performance in Tanga, district. 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. Statistical Package for Social Sciences (SPSS) 20^th version tool coupled with descriptive analysis technique was used in data analysis. The study findings revealed that ICT affect SMEs daily activities positively 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. The study recommends the use of mobile phone for business transaction as majority of the respondents have access on it.

Keywords: ICT use, Effect of ICT, SMEs performance.

DOI: 10.7176/EJBM/14-10-03

Publication date:May 31^st 2022