Drivers for Digital Transformation by Manufacturing Small and Medium Enterprises (SMEs) in Tanzania for Sustainable Supply Chains.

Abstract

This study examines drivers of digital transformation (DT) among manufacturing small and medium enterprises (SMEs) in Tanzania, with a particular focus on how place-based conditions shape DT-enabled sustainable supply chains (SSC) across coastal and inland settings. A mixed-methods design combined a questionnaire survey (n = 103) and semi-structured interviews (n = 15) with procurement, production and transport stakeholders in Dar es Salaam, Pwani and Morogoro. Descriptive analysis identified commonly used DTs and their extent of implementation, while confirmatory factor analysis and structural equation modelling tested the drivers of adoption. The findings show that Internet of Things and cloud computing are the most widely used DTs, but overall implementation remains moderate. SEM results indicate that organizational readiness and financial capability are the strongest drivers, complemented by technological capability, external support and environmental pressures. Key barriers include limited infrastructure, unclear benefits and shortages of digital skills, which amplify perceived complexity and reduce trialability especially where supply-chain connectivity is weaker. The study contributes a geography-sensitive account of DT adoption in Tanzanian manufacturing SMEs and offers implications for corridor/cluster-oriented support that can accelerate DT for SSC.