Impediments to adoption of e-marketing by Tanzanian small and medium sized enterprises: an explanatory model

Abstract

This paper uses the explanatory model to investigates the impediments to the adoption of electronic marketing among the Small and Medium Enterprises (SMEs) in Arusha, Tanzania. It looks at the extent of e- marketing utilization among small and medium enterprises; challenges facing SMEs in relation to the application of e-marketing and new strategies that would promote its adoption among the SMEs in the country. A structured questionnaire with 5-point Likert scale was used to collect information from owners and operators of 120 SMEs. Obstacles such as limited understanding of the potentials of e-marketing adoption, high cost of this technology adoption, inaccessibility of internet facilities and absence of regulatory framework to guide eMarketing were found to inhibit the adoption process. It was concluded that e-marketing is vital for the growth and performance of SMEs. Intervening strategies such as lowering costs of ICT facilities and Internet access prices by the Internet Service Providers, more support and initiatives by government on promoting and encouraging SMEs to use e-marketing, education and training on ICT and e-marketing for small operators and creation of shared portals that will facilitate information sharing and networking among the business communities are among the recommendations of this study.