Published Online:March 2025
Product Name:The IUP Journal of Supply Chain Management
Product Type:Article
Product Code:IJSCM010325
DOI:10.71329/IUPJSCM/2025.22.1.5-17
Author Name:Darlene K Mutalemwa
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:5-17
This paper reflects on the use of AI for small and medium enterprises (SMEs) in Tanzania to promote their competitiveness and improve supply chains, besides identifying the benefits, obstacles, and strategies applied in the successful implementation of AI. It uses the case study method to interview four university-educated owners of SMEs operating in construction, farming, retail, and furniture production. It uses theories of Innovation Diffusion and Resource-Based View to present an analysis of how technology, organizational resources, and external factors influence AI adoption. AI-powered tools are available for price tracking, crop yield prediction, and quality checks. However, substantial barriers include high costs, a lack of relevant skills, and weak infrastructure. Successful adoption involves initiating small partnerships and investment in employee training. Most scholarly papers on AI have not focused on the Tanzanian business perspective. Theoretically, a combination of real-world examples will help to derive practical insights for businesses, policymakers, and technology providers by showing how solutions must be tailored to work effectively in low-resource settings
The critical role that small and medium enterprises (SMEs) play in job creation, innovation, and the overall strength of the Tanzanian economy has been corroborated by various studies and reports, including United Republic of Tanzania (2013), Nkwabi and Mboya (2019), Gamage et al. (2020), Youssef and ElSabry (2025). The success or failure of SMEs is closely tied to their supply chain’s efficiency and effectiveness.