E-business literacy among small and medium enterprises in Tanzania: An empirical assessment of owners' capability to adopt and run online platforms

Kelvin Andrew Mbuya

doi:10.51867/ajernet.7.4.22

Authors

Kelvin Andrew Mbuya College of Business Education, Tanzania https://orcid.org/0009-0002-9776-6426

DOI:

https://doi.org/10.51867/ajernet.7.4.22

Keywords:

E-business literacy, E-commerce adoption, Digital literacy, SMEs, E-readiness, Tanzania

Abstract

Small and medium enterprises (SMEs) are the backbone of Tanzania's economy, yet many struggle to sell online. A key but under-examined barrier is e-business literacy: the knowledge and skills owners need to adopt and run online platforms, spanning the technical, marketing, payment, logistics, data-security, financial, legal and customer-management aspects of e-business. This study assessed the level and determinants of SME e-business literacy in Tanzania and its effect on the capability to adopt and run online platforms, and proposed a preliminary capability framework. A cross-sectional quantitative survey design was combined with design science research to derive the framework. Survey data were analyzed from 550 SME owners and managers across retail, fashion, food, agriculture, services and other sectors. The instrument showed high internal consistency (overall Cronbach's alpha = 0.865); sampling adequacy was met (Kaiser-Meyer-Olkin = 0.833; Bartlett's test, p < 0.001); and exploratory factor analysis returned 11 factors explaining 69.3% of the variance. Multiple linear regression explained 17.0% of the variance in adoption capability (adjusted R-squared = 0.154; F = 11.03, p < 0.001), with training access, financial records literacy, logistics literacy and legal-regulatory literacy the significant predictors. Legal-regulatory literacy and training access recorded the lowest scores, marking the biggest literacy gaps. The study contributes a validated measurement instrument, empirical evidence on the determinants of SME adoption capability, and a capability framework. It recommends that trainers and business-support bodies deliver targeted, hands-on training in the weakest and most decisive literacies, namely legal-regulatory compliance, logistics and financial record-keeping, rather than generic digital courses; that platform and payment providers simplify onboarding and provide guided support; and that government and regulators widen access to training and issue clear guidance on e-commerce rules and data protection.

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