The Dynamics of SMEs Growth and Electronic Marketing Potential in Developing Economies: Evidence from the manufacturing firms in Tanzania

Abstract

This study, investigated the impact of e-marketing practices on the performance of manufacturing Small and Medium Enterprises in Dar es Salaam, Tanzania. Through quantitative method, the survey research design was employed and a cross-sectional analytical approach was used. Data was randomly collected from 200 SMEs using both semi-structured questionnaire and company reports. Then, the analysis stage involved descriptive statistics, cross-tabulation, and regression analyses through SPSS:21 Results confirm that growth performance is more evident in SMEs that have used ICTs in their marketing activities and/or had ICTs knowledge as compared to their counterparts that did not transact electronically. Further findings reveal that most SMEs perceive the use of ICTs in marketing as an important aspect. However, there is no statistically significant relationship in the rating of the importance of ICT applications and SMEs performance. Apparently, there is more or less similar views on the importance of e-marketing within manufacturing SMEs. Notably, the study identified some challenges of executing e-marketing including lack of ICT knowledge, increase in internet crimes, lack of trust and transaction security, difficulties in accessing the internet and ICT accessories. Further, the model that can be used to explain the impact of e-marketing on SMEs performance is proposed.