ICT Use, Innovation, and Productivity: Evidence from Sub-Saharan Africa

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

ICT usage to enhance firms’ business processes in Tanzania

“…The tremendous increase of Information and Communication Technologies (ICTs) usage in the business sector has been vital in supporting the growth of the sector and acting as a good source of change (Gerguri-Rashiti, Ramadhani, Abazi-Alili, Leo-Paul, & Ratten, 2015). Understandably, various scholars refer to these tools as drivers and enablers of, or cornerstones for the advancement of the business sector (Apiyo & Kiarie, 2018;Billon, Marco, & Lera-Lopez, 2017;Cirera, Lage, & Sabetti, 2016;Grazzi & Jung, 2015;Ssewanyama & Busler, 2007). Similarly, the tools are considered as the bedrock for the sector's growth (United Republic of Tanzania [URT], 2016).…”

“…Additionally, aside from enhancing business processes such as the production of goods, ICTs also facilitate the usage of other technologies. Similarly, when looking at businesses in the sense of models, ICTs play a vital role in ensuring that all models [such as business-to-business (B2B), business-to-consumer (B2C) and supply chain management (SCM)] function properly (Cirera et al, 2016).…”

“…Divergently, the usage of Internet services to foster business performance has been recorded to be low in small size firms as compared to medium and large firms. Regarding the usage of computers, firms of all sizes have been found to deploy these technologies to support their businesses (Cirera et al, 2016). Table 1 shows that Tanzania is lagging behind compared to Kenya and other sub-Saharan countries in terms of ICT diffusion and uptake in business (Cirera et al, 2016).…”

“…Regarding the usage of computers, firms of all sizes have been found to deploy these technologies to support their businesses (Cirera et al, 2016). Table 1 shows that Tanzania is lagging behind compared to Kenya and other sub-Saharan countries in terms of ICT diffusion and uptake in business (Cirera et al, 2016). To date, there are very few studies (Cirera et al, 2016;Diyamett, Makundi and Mwantimwa, 2012) that clearly disclose the status of ICT usage to support innovation in manufacturing firms.…”

“…Table 1 shows that Tanzania is lagging behind compared to Kenya and other sub-Saharan countries in terms of ICT diffusion and uptake in business (Cirera et al, 2016). To date, there are very few studies (Cirera et al, 2016;Diyamett, Makundi and Mwantimwa, 2012) that clearly disclose the status of ICT usage to support innovation in manufacturing firms. In addition, the extent to which ICTs contribute towards business processes is still under debate and the question about the extent to which these tools can boost productivity remains unanswered.…”