Internal factors influencing adoption of e-procurement by Tanzanian sme’s involved in international business

E-procurement adoptions make purchasing activities more effective in terms of both time and cost. In Tanzania the adoption of e-procurement is at infant stage. The focus of this dissertation is on adoption of e-procurement that can be achieved in Tanzanian SME’s. The major objective of this research was to assess the internal factors influencing adoption of E- Procurement by Tanzanian SME’s involved in International Business at Ilala Municipal Council Dar es Salaam Region. The study aimed at achieving results by assesses internal factors influencing adoption of E- procurement and to examine the involvement of SME’s that use E-procurement. In this respect the study aimed to know any relationship which established between the adoption of Eprocurement and involvement of international business for SME’s. The study was a descriptive in nature which mainly employing a qualitative approach which provides a clear presentation of the variables under study. It emphasizes on quality in the collection and analysis of data and is to be used when collecting data using open- ended questionnaire. The study was carried out in Ilala Municipal where the population was 100 SME’s operating in the Ilala Municipal. Purposive sampling technique has been used to select 64 firms, translating into 64 procurement officers. The research findings were summarized in form of charts and tables using coded numbers, frequency, percentages and cumulative percentages, that all the variables were statistically significant: technological factors, organizational factors and environmental factors affect adoption of e-procurement. Based on the findings, the researcher came up with the following recommendations: individual firms should increase the proportion of expenditure on e-procurement; widening the scope of supplier sourcing thereby justifying use of e-procurement, firms need to increase the e-procurement capability in terms of IT expertise and IT infrastructure injecting regular upgrading of IT system and management of firm to expand the use of eprocurement by incorporating most of e-procurement processes as well as all eprocurement mode.