Management challenges facing SMEs to invest in information and communication technology: the case of Tanzania, Dar es Salaam region
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Date
2008
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of Dar es Salaam
Abstract
The major objective of this study was to examine and identify management challenges facing SMEs in making investment decisions for improved performance competitiveness. The study was conducted in Dar es Salaam region and surveyed SMEs involved in manufacturing, food processing, textile, tourist and other services. Data were obtained from a sample size of 45 Tanzanian SMEs operating in Dar es Salaam City. This included 13 for manufacturing, 9 for Transportation, 8 for Tourism, 5 for Wholesale, 5 for Retailing and other service provision firms were 5. Data were collected through a semi-structured questionnaire, both closed and open-ended questions were used in the questionnaire to collect the required information to answer the study problem. The questionnaire was used as the main data collection instrument to avoid biases likely to be caused by the Interviewer. In addition, structured interview guide was used to supplement questionnaire. Data analysis was performed using Statistical Package for Social Science (SPSS). Findings of this research reveals that ICT business planning and strategy, inadequate ICT management skills, inadequate finance, Size of SMEs in terms of number of employees and the nature or type of business all influenced SMEs to invest on ICT. The research also tested hypotheses, which were divided into four parts namely preparedness to invest in ICT, Management skills, adequate finance, and size, type and nature of business. Results on these hypotheses indicate that majority of SMEs with ICT plans reflecting business goals allocated budget each year to finance ICT investment in comparison with those who do not allocate budget each year to finance ICT investment. Allocation of budget each year to finance ICT Investment depended on relevant ICT plans to support business goals. Moreover preparedness of SMEs in ICT investment was influenced by ICT plans linked to business goals. Overall the results suggest lack of training affected the owner/managers shought about investing in ICT. Generally from the standpoint of those findings it appears that attendance to ICT training improved the thinking of owners/managers to positively deciding investing in ICT. Furthermore the study findings suggest that lack of the required ICT knowledge among owners/managers of the SMEs hindered their decision to invest in ICT as a strategic investment to improved business Operations. Generally the results show that a bigger number of SMEs with employees 1-20 did not acquire ICT facilities to aid their business operations. Moreover, the results revealed that requiring ICT facilities is depended on the type of business undertaken by respective companies. The study finally has recommended areas for future research or further investigations.
Description
Available in print form, EAF Collection, Dr. Wilbert Chagula Library, (THS EAF HD2341.T34M29)
Keywords
Management economics, Investment, Information and communication technology, , Small and medium enterprises, Dar es Salaam region
Citation
Mayala, P.J (2008) Management challenges facing SMEs to invest in information and communication technology: the case of Tanzania, Dar es Salaam region, Masters dissertation, Universuty of Dar es Salaam, Dar es Salaam