Introduction
Types of firms | ICTs | ICT (i.e., computer, Internet and software) usage by selected countries (%) | ||||||
---|---|---|---|---|---|---|---|---|
Ghana | DRC | Tanzania | Uganda | Zambia | Kenya | Average | ||
Small | Computer | 57.3 | 48.8 | 34.3 | 60.0 | 67.4 | 81.5 | 58.2 |
Software | 7.0 | 28.2 | 7.9 | 14.0 | 22.1 | 22.2 | 17.1 | |
Internet | 43.8 | 20.9 | 18.0 | 21.3 | 44.2 | 64.4 | 35.5 | |
Medium | Computer | 89.7 | 74.4 | 59.6 | 35.3 | 67.5 | 96.8 | 70.5 |
Software | 17.9 | 37.8 | 16.6 | 14.2 | 24.2 | 39.7 | 25.4 | |
Internet | 83.0 | 58.7 | 34.2 | 19.3 | 56.4 | 83.1 | 55.8 | |
Large | Computer | 98.6 | 94.1 | 69.9 | 89.6 | 100 | 100 | 91.9 |
Software | 25.6 | 61.1 | 22.0 | 21.0 | 58.5 | 46.1 | 38.4 | |
Internet | 95.5 | 63.7 | 42.9 | 80.4 | 93.3 | 87.6 | 77.2 |
Literature
ICTs and their support for business processes
Determinants of ICT adoption and usage for business processes
Barriers to ICT usage for business processes in firms
Literature gaps
Methodology
Study design and approach
Study setting and sampling
Research methods, instruments and protocol
Reliability test of instruments
Test variables | No. of items | Alpha |
---|---|---|
Firms’ profile | 8 | .821 |
Types of ICTs | 10 | .906 |
Potential ICTs | 5 | .754 |
Usage of ICTs on innovation | 10 | .869 |
Determinants of ICT usage for innovation | 10 | .882 |
Challenges of ICT usage | 6 | .749 |
Data analysis
Results
Firms’ profile
Firms’ profile (n = 182) | Descriptive statistics | ||
---|---|---|---|
Frequency | Percent | ||
Year of establishment | < 2000 | 56 | 30.8 |
2001–2010 | 78 | 42.9 | |
> 2011 | 48 | 26.4 | |
Business types | Manufacturing | 59 | 32.4 |
Processing | 33 | 18.1 | |
Exporting | 10 | 5.5 | |
Importing | 26 | 14.3 | |
Services | 54 | 29.7 | |
Size of firms | Small | 41 | 22.5 |
Medium | 22 | 12.1 | |
Large | 119 | 65.4 | |
Ownership | Private | 143 | 78.6 |
State-run | 39 | 21.4 | |
Origin | Local | 133 | 73.1 |
Foreign | 49 | 26.9 | |
Sources of materials | Foreign | 87 | 47.8 |
Local | 35 | 19.2 | |
Both | 60 | 33.0 | |
Markets | Domestic | 125 | 68.7 |
Domestic and foreign | 57 | 31.3 | |
Headquarter | Dar es Salaam | 147 | 80.8 |
Outside DSM | 28 | 15.4 | |
Outside Tanzania | 7 | 3.8 |
Facilities ownership, Internet subscription and frequency of ICTs’ usage
ICT ownership and frequency of use (n = 182) | Types of firms | Total | P value | |||
---|---|---|---|---|---|---|
Small | Medium | Large | ||||
ICT facility ownership and Internet subscription | Computers | 12 (29.2%) | 18 (81.8%) | 119 (100%) | 149 (81.9%) | .000 |
Mobile phone | 41 (100%) | 22 (100%) | 119 (100%) | 182 (100%) | .948 | |
Landline telephone | 8 (19.5%) | 14 (63.6%) | 97 (81.5%) | 119 (65.4%) | .000 | |
Photocopier | 4 (9.8%) | 10 (45.5%) | 100 (84%) | 114 (62.6%) | .000 | |
Printer | 16 (39.0%) | 14 (63.6%) | 98 (82.4%) | 128 (70.3%) | .000 | |
Scanner | 8 (19.5%) | 6 (27.3%) | 45 (37.8.0%) | 59 (32.4%) | .072 | |
EFD | 19 (46.3%) | 17 (77.3%) | 98 (82.4%) | 134 (73.6%) | .014 | |
Barometric | 0 (0.0%) | 2 (9.1%) | 14 (11.8%) | 16 (8.8%) | .785 | |
Website | 9 (22.0%) | 8 (36.4%) | 69 (58.0%) | 86 (47.3%) | .004 | |
Internet subscription | 5 (12.2%) | 10 (45.5%) | 62 (52.1%) | 77 (42.3%) | .000 | |
Useful ICTs to support business processes | Computers | 9 (22.0%) | 14 (63.6%) | 96 (80.7%) | 119 (65.4%) | .022 |
Mobile phone | 34 (82.9%) | 18 (81.8%) | 61 (51.3%) | 113 (62.1%) | .643 | |
Internet services | 16 (39.0%) | 14 (63.6%) | 74 (62.2%) | 104(57.1%) | .005 | |
Software | 8 (19.5%) | 13 (59.1%) | 50 (42%) | 71 (39%) | .000 | |
Website | 1 (2.4%) | 6 (27.3%) | 54(45.4%) | 61(33.5%) | .003 |
ICT usage in business processes
ICT usage on innovation (n = 182) | Types of firms | Total | Sig. | ||
---|---|---|---|---|---|
Small | Medium | Large | |||
ICTs are used to promote and market products and services | 14 | 9 | 61 | 84 | .585 |
34.1% | 40.9% | 51.3% | 46.2% | ||
ICTs are deployed to process orders from suppliers and clients | 19 | 14 | 98 | 131 | .013 |
46.3% | 63.6% | 82.4% | 71.9% | ||
We created different management database | 8 | 10 | 93 | 111 | .000 |
19.5% | 45.5% | 78.2% | 60.9% | ||
ICTs are used for process products and design new services | 6 | 9 | 52 | 67 | .046 |
14.6% | 40.9% | 43.7% | 36.8% | ||
ICTs are used to communicate with our suppliers and clients | 29 | 13 | 117 | 159 | .061 |
70.7% | 59.1% | 98.3% | 87.4% | ||
We are making our financial transactions by using ICTs | 34 | 16 | 84 | 134 | .723 |
82.9% | 72.7% | 70.6% | 73.6% | ||
We use ICTs for strengthening and handling security issues | 3 | 5 | 36 | 44 | .057 |
7.3% | 22.7% | 30.3% | 24.2% | ||
We use ICTs to receive customer’s feedback | 11 | 7 | 41 | 59 | .071 |
26.8% | 31.8% | 34.5% | 32.4% | ||
We use ICTs to manage our records and data | 9 | 12 | 89 | 110 | .002 |
22.0% | 54.5% | 74.8% | 60.4% | ||
ICTs are used to prepare invoices | 5 | 8 | 46 | 59 | .045 |
12.4% | 36.4% | 38.7% | 32.4% |
The introduction of computers and mobile devices has changed the model of doing our business. With the help of these technologies we now have clients from everywhere. Our reach now is beyond our usual geographic confinement. We can now sell our products online as well as order and acquire materials online. In simple terms, these computerised technologies and the internet are helping us increase our innovativeness and competitiveness. We always feel the need to move along with these technologies to remain a vibrant firm [gender, male; age 48; designation, supervisor; type of firm, manufacturing; town, Dar es Salaam].
In our firm we frequently use social media to promote our products. Our intensification of the usage of platforms such as Facebook, WhatsApp, Twitter, and more recently Instagram has come out of the realisation that majority of our current and potential customers are their users. These tools make it easier for our marketing efforts to reach our customers. With the interactive nature of these tools, we now also receive many enquiries from our customers about our new products. In short, our usage of social media is helping us cut down on costs we used to incur from promoting our products on TVs and radio [gender, female; age, 39; designation, marketing manager; business type, product processing; town, Dar es Salaam].
Our IT experts have created computerised databases for managing company assets, clients’ contact details and employees’ profiles. The databases have been created using Microsoft Access and we can access them online or offline hence making important data more accessible. For example, even though I am here (away from office), I can retrieve contact details of our clients who have visited and bought our products. We use the same contacts to disseminate information about our new products and or discounts, and in our other communication with them to build and maintain better relationships [gender, male; age, 52; designation, manager; business type, manufacturing; town, Arusha].
Our way of communicating has changed since we have started using emails and mobile phones. With the help of emails and mobile phones, it is possible to create and distribute a message to multiple clients at once. In addition, sharing of information about our services and products has radically become simpler because of the usage of mechanisms such as emailing, text messaging, and social media messaging. These days, in just a short period of time a large community of our clients can be made aware of our new products and services [gender, male; age, 44; designation, director; business type, service company; town, Dar es Salaam]
Marketing tools such as flyers and business cards are now created by our own staff in the marketing department as opposed to our previous dependence on outsourcing them from other firms which used to cost us a lot of money. The firm is now spending less on marketing our products. This is also contributed to by the usage of social media in the promotion of our products. We really appreciate the business processes that ICTs are supporting in our firm [gender, female; age, 35; designation, managing director; business type, manufacturing; town, Tanga].
Considering that our firm mainly depends on imported raw materials, ICTs have helped us by lessening the difficulties usually faced in the processing of orders for such materials. With the help of the Internet, we now order raw materials directly from vendors’ databases. Similarly, the transfer of money to vendors has become easier with the presence of ICTs. In all, the technologies offer opportunities to finish transactions within a short time by lessening the amount of time used to process orders, import and export goods, and make transactions [gender, female; age, 41; designation, manager; type of business, importing products; town, Dar es Salaam].
When I want to come with a design of a product I first search for different designs on the Internet. I spend much time learning so I can come up with best designs. With the presence of various search engines, I am now able to search for and look at various presentations (e.g. images) of ideas. For example, I can search house images on Google and use what I get to update my architectural skills and knowledge. Besides that, advanced open source software (OSS) packages for designing buildings are now readily available for use and customisation hence sparing architects from the need to spend a lot of money to acquire software [gender, male; age, 39; designation, director; type of business, service; town, Dar es Salaam].
Determinants of ICTs’ usage for business processes
Determinants of ICT usage for innovation (n = 182) | Frequency | Percent |
---|---|---|
ICT hardware | 172 | 94.5 |
Internet | 160 | 87.9 |
ICT software | 119 | 65.4 |
Knowledge investments | 102 | 56.4 |
Networking | 94 | 51.6 |
Nature and size of the firms | 89 | 48.9 |
Awareness on the kinds of ICTs | 68 | 37.4 |
Firms ownership | 51 | 28.0 |
Usage policies | 44 | 24.2 |
Taxes for importing ICTs | 39 | 21.4 |
Model | Unstandardised coefficients | Standardised coefficients |
T
| Sig. | ||
---|---|---|---|---|---|---|
B
| Std. error | Beta | ||||
Determinants of wide variety of ICT usage | (Constant) | 1.967 | .233 | 8.458 | .000 | |
Year of establishment | .026 | .047 | .041 | .552 | .582 | |
Nature of business | .027 | .022 | .094 | 1.191 | .235 | |
Size of firms | − .298 | .043 | − .524 | − 6.917 | .000 | |
Origin of the firm | .019 | .078 | .018 | .245 | .807 | |
Sources of materials | .312 | .029 | .691 | 9.152 | .000 | |
Markets | − .038 | .037 | − .074 | − 1.016 | .311 | |
Location | .016 | .027 | .042 | .592 | .555 | |
(Constant) | 1.967 | .233 | 8.458 | .000 | ||
Year of establishment | .026 | .047 | .041 | .552 | .582 |
Barriers of deploying ICTs for business processes
Challenges (n = 182) | Agree | |
---|---|---|
Frequency | Percent | |
Inadequate technological savvy limits the application of ICTs in our firms | 114 | 62.8 |
Unfriendly regulatory frameworks deter effective usage of ICT to support innovation | 107 | 58.8 |
Financial constraints limit the accessibility and usability of ICTs | 96 | 52.7 |
Security issues deter the effective usage of ICTs | 67 | 36.8 |
Unreliable Internet and networks undermine the usage of ICTs | 51 | 28.0 |
Unreliable power supply is affects effective usage of ICTs | 44 | 24.2 |
Our firm’s investment of a lot of money in the acquisition of sophisticated information and communication technologies is overshadowed by its lack of investment in staff training on the usage of the ITCs. The result of this has been a low return from the investments. For example, new employees are not oriented on the usage of different software acquired by the organization and as a result they do not use them. This poor prioritisation slows down the usage of the technologies for innovation [gender, female; age, 35; designation, managing director; business type, service; town, Tanga].
Technophobia is a common phenomenon in our firm. Due to lack of skills some staff members avoid using technologies to support their daily operations. Some of the reasons some of them avoiding the usage of technology are not clearly known. As it appears, their avoidance might be associated with negative attitudes, and lack of usage knowledge and skills among them. Despite undergoing some training on their usage, the innovative usage of these tools is still not promising [gender, male; age, 39; designation, director; business type, processing products; town, Mbeya].
Some kinds of computerized systems are not user friendly; they require too much effort from users to operate such that if a user is not eager enough to learn they are less likely to go ahead. This is a common practice in majority of public organizations [gender, female; age, 48; designation, firm supervisor; business type, service; town, Mwanza].
For our case, the main problem is the insufficiency of financial resources for acquiring modern ICT facilities. We know the opportunities these facilities offer but the capital to invest is the issue. That is mainly the reason there are less advanced or no ICTs infrastructure in other small firms like ours. As a result, mobile phones are the most important technologies that support our operations. Lucky enough every staff member as well as our clients has mobile phones. We use these to communicate with them through text messaging and WhatsApp which are important platforms for marketing our services and products [gender, female; age, 35; designation, managing director; business type, manufacturing; town, Tanga].
In many circumstances, inadequate awareness among staff on the kinds of systems that would support the firm’s performance and boost innovation are the barriers of effective usage of ICTs in our company. In addition to that, sometimes the technologies are accompanied by different supporting tools of which our staff members are not aware. Worse still, our staff members do not care to spend time to research on the kinds of supportive tools accompanying the technologies we have hence their underutilisation [gender, male; age, 58; designation, managing director; business type, product processing; town, Dar e Salaam].
Low usage of ICTs to support diverse innovations is associated with the lack of policies. Based on my experience, most firms do not have frameworks to guide innovative deployment of ICTs in place. As a result, people use a trial and error model to accomplish the tasks assigned to them. Without legal and policy frameworks, our local firms cannot effectively compete with firms of foreign origin [gender, male; age, 54; designation, director; business type, service; town, Dar es Salaam].