Impact of e-commerce on export performance for small and medium-sized enterprises in Tanzania: a case of manufacturing sector

Information technology and e-commerce have transformed business, but the transformation is not limited to conducting business online; it's also about integrating e-commerce and IT into every aspect of value creation, such as procurement, customer relations management and export. In spite of this, it appears that small and medium-sized enterprises (SMEs) are struggling to embrace and utilize the power of e-commerce in order to improve their export performance. This study analyzed the Impact of e-commerce on export performance for Small and medium-sized enterprises in Tanzania. The study uses the case study design to obtain the necessary and required qualitative and quantitative data. The study was conducted in Dar es Salaam because. The study was also conducted in five SMEs in manufacturing sector whereby the target population are all classes of workers working in these companies. The sampling frame obtained from the companies’ records in which 10 senior and normal workers random chosen out of total workers available in each company. Published and unpublished materials were used in collecting information to supplement the secondary data. The other part of the data collection is primary data, which collected in the field through face-to-face unstructured interview, observation and questionnaires. The study finds that e-commerce has help much in reduction of promotional and advertisement cost to SMEs. Also the major barriers revealed which hinder the processing of using e-commerce technology in the firm to improve export performance is budget constrain and lack of awareness on internet potential. Also the level of application of e- commerce as revealed by this study is still low.