Factors influencing use of e-commerce in small and medium enterprises’ (SMEs) operations in international marketing

This study aimed at investigating factors influencing use of electronic commerce in Small and Medium Enterprises’ operations in international marketing in Dar es Salaam, Tanzania as case study. The objective of the study was to identify factors influencing use of e-commerce in Small and Medium Enterprises’ operations in international marketing. The study used descriptive research design and questionnaires to collect primary data while secondary data were collected using documentary sources. A sample of 90 respondents comprising MSE members involved in international marketing in Dar es Salaam region were interviewed. Data analysis was done by using Statistical Package for Social Sciences (SPSS) version 20.0. Findings revealed that SMEs were aware of utilization of e-commerce and most respondents said the there is contribution of e-commerce to SMEs in international market operations. Furthermore, findings indicated that factors that influence use of e-commerce are market expansion, firm’s performance, and distance barrier elimination as well as legal and regulatory environment. The following were identified challenges that hinder SMEs to fully engage in international marketing: lack of technology, security, inadequate technical human resources, slow internet speed and poor information infrastructure. The e-commerce influences on business performance but the potential has not been taped by majority of the SMEs in Tanzania. This contributes to build a body of knowledge and improve SMEs’ operations in international marketing by using e-commerce. The study recommended that SMEs should be further aware of the wider potential of e-commerce factors since it seemed most e-commerce was used for communication purposes only. Instead, they should realize that it is a powerful and cheap resource that can be used for advertising, learning, research, discussions and explore the world in advancing our business. Stakeholders in this area including regulatory authorities should find ways to increase awareness of the other potential aspects of e-commerce among SMEs.