Factors affecting the adoption of electronic customer relationship management information systems in SMES in Tanzania: a case study of Dar es salaam

Electronic Customer Relationship Management (e-CRM) Information System is currently gaining importance in the World competitive business environment. It has attracted the attention of researchers and scholars to integrate perceived benefits of e-CRM systems with the initiatives of SMEs performance and development. More companies are adopting e-CRM systems as an opportunity to expand their business activities to reach new customers and offer better way of serving customers. The objective of this study was to identify the factors affecting the adoption of electronic customer relationship management information systems in SMEs in Tanzania. The study used both quantitative and qualitative approaches to establish the extent to which e-CRM has been implemented in SMEs and the factors that affect its adoption. The study employed quantitative research study where primary data were collected using questionnaires and processed using STATA software, whereby 247 respondents were consulted. The study findings revealed that Perceived Ease of Use and Usefulness of e-CRM systems was the factor affecting its adoption by SMEs. The study further revealed that most of SMEs do not have e-CRM in place and the features employed are not known. Also on the concept of ease of use of technology, most of the respondents admitted that not only they have no experience on the e-CRM systems, but also they lack computer knowledge. Furthermore, the study findings revealed that costs of acquiring and maintaining e-CRM components are so higher to the extent of not affording to implement it. Moreover, the study findings revealed that most of SMEs in developing countries do not have e-CRM systems in place. Therefore, the concepts of customer satisfaction, customer retention and customer loyalty are not effectively employed within their organizations. The study gives recommendation that SMEs must not only employ computer training programmes policy, but also involve e-CRM projects. The government must also deregulate the cost of ICT components in order to make them available to SMEs.