Abstract:
SMEs, processing food products and information technology (IT) are one of the factors that drive the economic development of any country. Countries around the world including Tanzania are struggling to make sure that revenue from these sectors is increased. This study specifically endeavored at investigating impacts of IT applications on growth and development of Small and Medium Food Processing Enterprises (SMFPEs). To illustrate this impact, 50 respondents in SMEs engaging in food processing business were be sampled. IT adoption among SMEs has enhanced the ability of firms to gain competitive advantage not only locally but also in the international markets. The term IT (information technology) in this study is also used to refer other information technologies used in innovation literature, for example e-business, the internet, e-commerce and web technologies. The study aimed at filling the empirical gap by studying the impacts of IT applications and usage among SMEs in Food Processing Sector in Morogoro Municipal. A review showed that there is a little empirical research conducted focusing IT application and usage among SMEs engaged in Food Products Processing. The study also sheds on the conflicting conclusions drawn in previous ICT adoption and utilization studies. To illustrate this impact, 50 respondents in SMFPEs using email and web technologies in their business operations were purposively sampled. The study found out that Email and Web technologies is important for growth and development of SMEs in the sector due to several benefits achieved after adoption of this technology. SMEs were able to improve quality of services they offer to their customers and suppliers such as effective communication, market expansion, improves transactions and advertising their products, hence increasing sales volume by adding number of customers. Following the findings, the study suggests that Email and Web technologies has eased communication, improved marketing ,increased awareness, improved relationships with suppliers and customers and has also increased number of customers and sales volume. This means the use of this technology has proved a lot of benefits that will help SMFPEs to grow and develop their business.
