Outcomes of E-Commerce Adoption on Enhancing Small and Medium Enterprises Performance in Tanzania: A Case of Ilala Municipal Council

Abstract

The study was carriedout examine the outcomes of e-commerce adoption on enhancing small and medium enterprises performance in Tanzania, a case study of Ilala Municipal Council. We investigated SMEs owners and operaters using online surveys. It was guided by three independent variables, namely e-commerce information quality, system quality and service quality as independent variables while e-commerce use and user satisfaction were mediating variables. The study used cross-sectional survey research design, adopted a positivist philosophy, a deductive approach, a quantitative mono-method, and a survey strategy. On examining the influence of e-commerce information quality on enhancing SMEs performance, the study has found that there is insignificant direct influence of e-commerce information quality on e-commerce use. The study has found that e-commerce use has a positive significant influence on performance of SMEs. The study also has found that e-commerce information quality has a positive significant influence on e-commerce user satisfaction. Furthermore, the study has found e-commerce user satisfaction has a significant positive influence on SMEs’ performance. On examining the influence of e-commerce system quality on enhancing performance of SMEs, the study has found e-commerce system quality has a positive significant influence on e-commerce use. The study has found e-commerce use has a significant positive mediating influence on performance of SMEs. The study also found e-commerce system quality has a positive significant influence on e-commerce user satisfaction. Additionally, the study has found e-commerce user satisfaction has a positive significant influence on performance of SMEs On examine the influence of E-commerce service quality on enhancing SMEs performance, the study has found E-commerce service quality has a positive insignificant influence on E-commerce use. Additionally, the study has found e-commerce use has a positive significance influence on performance of SMEs. The study also found e-commerce service quality has a positive insignificant direct influence on e-commerce user satisfaction. On the other hand, the study has found that e-commerce user satisfaction has a positive significant influence on performance of SMEs. This is a comprehensive study conducted in Tanzania regarding the adoption of ecommerce, and factors influencing post-adoption of ecommerce improve SMEs performance.