ICT Adoption Among Tanzanian SMEs : Barriers Hindering Internet Use

Problem Tanzanian SMEs are experiencing rapid development and the emergence of ICT innovations related to business applications. However, the development is hindered by a number of barriers related to infrastructural, human capital and institutional issues. To raise economic growth, these barriers must be understood, what implications that follows in taking the next step up the adoption ladder and how to overcome them. Purpose To identify and explore how the barriers of ICT at different levels of the adoption ladder are to be overcome and what implications it has for SMEs in Tanzania. Research design/methodology A mixed method approach was conducted with a survey where 96 SMEs responded that asked questions regarding ICT use and its barriers. A qualitative study on site in Tanzania was also conducted involving eight different companies and organizations within the tourism sector. The data from both sources was then combined and analyzed to get a view of the current situation and reach a conclusion. Conclusions The major barriers identified were; bad/slow Internet connection, high cost of Internet access, high cost of equipment, lack of power supply, poor IT skills and difficulties getting bank loans. Regarding adoption levels, for every step upwards in the adoption ladder the barriers of ICT are raised. This dynamic view of barriers within this context were, for example, that continuous power supply at lower levels in the adoption ladder does not affect the use or perceived usefulness among SMEs in Tanzania. The combined theory and analysis of the empirical data was used to develop an analytical model that illustrates the rising barriers at every step in the adoption ladder. The empirical data and this dynamic perspective on barriers that the analytical model gives serves as the main contributions of this study. Practical implications The view on barriers in Tanzania is not static and the understanding of the barriers and how they impact SMEs will from this study help the government, NGOs and other organizations in Tanzania, in how to address the barriers of ICT that is currently impeding growth and economic development for SMEs. Research limitations/implications For these results to be generalized a bigger sample needs to be gathered and address more SMEs outside the tourism industry