Title: The Impact of Digital Procurement Tools on the Growth and Competitiveness of Entrepreneurial Ventures in Iringa Municipal.
Authors: Yohana Tweve, Alfred Luoga, Zainabu Libuhi.
Volume: 9
Issue: 10
Pages: 234-248
Publication Date: 2025/10/28
Abstract:
This study investigated the impact of digital procurement tools on the growth and competitiveness of entrepreneurial ventures in Iringa Municipal, Tanzania. Employing a mixed-methods approach with a sample of 86 ventures, the research assessed the level of digital procurement integration, perceived business performance impacts, and contextual influencing factors. Findings revealed a significant awareness-to-adoption gap, with high awareness (74%) not translating into deep integration, as only 41% of ventures were adopters and 65% of those reported low usage intensity. The tools demonstrated a strong positive impact on supplier relationships (44%) and operational efficiency (37%), but their effect on cost reduction was limited (29%), as financial outlays often offset savings. The study identified severe contextual barriers, primarily high costs and unreliable infrastructure, which were perceived as more influential than the recognized enablers. It concludes that the transformative potential of digital procurement is substantially constrained by the local ecosystem, necessitating targeted strategic support to bridge the adoption gap and unlock competitiveness for SMEs in emerging regional economies.