Modelling the Determinants of the Levels of Digital Technology Adoption among SMEs in Tanzania

This study analysed the determinants of the levels of digital technology adoption (DTA) among SMEs in the fruit juice processing industry in Tanzania. Anchored in the Technology Acceptance Model (TAM) and the Technology–Organisation–Environment (TOE) framework, this study addresses an empirical gap by conceptualising DTA as a multilevel outcome. Using a cross-sectional design, quantitative data were collected from 390 SMEs in the Dar es Salaam, Arusha, and Mbeya regions. We analysed the data using descriptive statistics and an ordered logistic regression. The study findings indicate that most SMEs remain in the early stages of digital transformation: 41.8% exhibit low adoption, 41.3% moderate adoption, and only 16.9% high adoption. The regression results indicate that perceived usefulness strongly drives progression to higher adoption levels, whereas competitive pressure mainly stimulates adoption at lower and moderate levels. Female-owned SMEs are more likely to achieve higher adoption levels than male-owned SMEs. Contrary to expectations, financial resources alone do not predict higher adoption, whereas the number of employees and adequate infrastructure are significantly associated with remaining at a low level of adoption. SMEs with adequate infrastructure are more likely to progress beyond low levels of adoption and consolidate their use at moderate levels. However, infrastructure alone is insufficient to drive adoption at the highest levels. This study advances the digital adoption literature by analysing SMEs’ progression from low to high DTA. It also extends the TAM and TOE frameworks in the African context and offers new insights into gender differences in technology adoption.