Assessment of Adoption of E-Business among Small and Medium Enterprises in the Tourism Sector:

Abstract

E-business can enhance the performance of tour companies. Hence, this study assessed the adoption of e-business among Small and Medium Enterprises (SMEs) in the Mjini District of Zanzibar. As such, the study determined e-business adoption among SMEs tour operators in Mjini District. Specifically, the study examined the extent of e business usage in business management among tour operators, identified drivers stimulating e-business adoption among tour operators in Mjini District and examined constraints towards e-business adoption among tour operators in Mjini District. The study applied a quantitative research approach with a descriptive research design. The study was based on a population of 543 managers of tour operators and a sample size of 230 respondents, of which 162 were reached. Data was collected using a questionnaire and observations. Data analysis involved descriptive statistics comprising frequencies, percentages, mean and standard deviations. The study’s findings showed that small tour operators mostly use e-business platforms such as e accounting, e-reservation, social media and TripAdvisor. The study also found that e business adoption is influenced by perceived usefulness, easiness, customer preferences, competitive market advantage and government support. The findings also revealed that the adoption of e-business is constrained by internal and external challenges, including the high cost of e-business tools, lack of strategic plans, shortage of ICT infrastructures, lack of strategic alliance, and technological changes. The study concludes that e-business adoption largely focuses on tools that are geared towards customer attraction and revenue generation; adoption remains low in operational areas such as e-recruitment and e-procurement.