Digitalization in Logistics and Supply Chain Management for Agro-Processing SMEs in Kahama and Msalala – Tanzania

Abstract

This study explored the growing landscape of Logistics and Supply Chain Managemnent (LSCM) focusing on Small and Medium Enterprises (SMEs) in Tanzania. The purpose was to examine on how digitalization is adopted and utilized in the agro-processing sector by SMEe in Kahama and Msalala districts to enhance their LSCM practices. Through the lense of Technological Acceptance Model, Resource Based View and Institutional  Theory framework, the study employed a qualitative case study design in which pattern matching technique was used for data analysis. The main findings reveal that there are varying levels of digital adoption across SMEs, improved efficiency for digitally transformed SMEs curtesy of realtime data and well informed decision-making. The fndings further indicate some common barriers to succesfull digital transformation such as lack of digital skills, limited access to digital technologies and resistance to change among some SMEs. The paper highlights that digital adoption can be accelerated by removing impediments through establishing supportive and context sensitive regulatory framework as well as advocating for digital transformation by different actors in the digital ecosystems.

Keywords: Digitalization, Agro-processing, Tanzania, SMEs, SCM