A structuration analysis of Small and Medium Enterprise (SME) adoption of E-Commerce: The case of Tanzania

There have been several studies on E-Commerce adoption in developing countries. However, few have investigated least developed countries (LDCs). Of those that have, their findings tend to be descriptive in nature - falling short of a theoretical contribution grounded in the sociocultural context. The purpose of this paper is to provide a theoretical analysis of E-Commerce adoption in an LDC, Tanzania. Specifically, the study seeks to identify structural practices associated with E-Commerce in Tanzanian SMEs. Using structuration theory and following an interpretivist stance the findings show that Tanzanian SMEs enact three major E-Commerce structural practices: (1) Marketing and image-building through use of websites, (2) Transacting through extensive use of mobile technology (3) Technical problem-solving through establishing partnerships. These practices are informed by organisational and environmental factors that define the sociocultural, technological and economic contextual setting. Considerable evidence is found that SMEs use websites in a limited way, as they draw upon their understanding of websites as being incompatible with the Tanzanian cultural bargaining system, which is characterised by cash transactions and face to face bargaining. Websites are viewed primarily as a platform from which SMEs can portray a sophisticated image and advertise/market their products. SMEs use mobile technology extensively, as they draw on the technology's ability to offer transactive capability, mobility and communication. Findings also point to technological challenges which SMEs face from the environment, mainly from a lack of supporting industry and institutional support. SMEs hence establish partnerships with international organisations that can support them in overcoming technological challenges. Partnerships with large ICT organisations require stringent conditions, such as the requirement for SMEs to have certification in order to be affiliated. The study gives practitioners a better understanding of how SMEs perceive E-Commerce in Tanzania amidst organisational and environmental opportunities and constraints, and in so doing practitioners can better design appropriate E-Commerce context-specific policies and interventions that address SME problems. This will ensure that available resources become utilised in a more effective manner without negative consequences.