Factors Influencing Adoption of Internet Services among Small and Medium Enterprises (SMEs) in Tanzania

Abstract

Internet services have been predicted to be a driver of business growth for both developed and developing countries. While the SME sector plays a significant role in its contribution to the world economy in terms of the wealth created and the number of people employed. In Tanzania the SMEs represent the greatest share of the productive units of the national economy and the current national policy directions address ways and means of developing the capacities of SMEs. However, SMEs in Tanzania have low up take of internet services. As the results they loss the power to compete in the global market. Many factors could be responsible for the low usage of internet services among the SMEs in Tanzania. In order to determine the factors that promote the adoption of internet services among SMEs, this study used survey questionnaire to collect the data from a sample of 178 employee and owner of SMEs sector in Morogoro town. Simple random sampling was used to pick sample during data collection process where exploratory factor analysis was used to ensure construct validity. Cronbach's Alpha was used to test for reliability of data collection instruments where p-value greater than  0.6 was accepted and recommended in this study.  The results using multiple regression analysis revealed that organization facility, environmental characteristics, technology easiness and technology usefulness strongly influence SMEs to adopt internet services. conclusion were made base on the findings and the study recommended that  the government should  develop policy and a political vision; strategic objectives; policies and design mechanisms for the cooperation between parties to control internet services, regardless type of service.