E-Commerce Usage and Performance of Small and Medium Tourism Enterprises in Tanzania

Abstract

Small and Medium Tourism Enterprises in Tanzania is potentially important for the development of national economy. Its potential is seen in the strong forward and backward links it has with other industries in the country. However, just like in many other developing countries, the performance of these enterprises in Tanzania is revealed to be very low. E-commerce is cited useful to promote enterprises but there was no evidence to justify its practicability in Tanzania. This paper, therefore, uses the success Model to illuminate the effect of e-commerce usage on the enterprises’ performance. The 325 questionnaires were collected through cross-sectional survey design. The relationship between the variables was tested by using structural equation modelling. The results revealed that e-ordering and e-advertisement usages have influence on the performance of the enterprises. The e-ordering, e-advertisement and e-payment have an influence on the number of tourist visits enterprises. It is recommended that the enterprises to make effective use of the online advertisements to improve performance. This article also highlights the e-commerce areas that need special attention that would ensure improvement of performance. Moreover, it gives some useful insights to policymakers in the tourism firms looking for specialisation and positioning within the global market