Modelling the determinants of the level of digital technology adoption among fruit juice processing SMEs in Tanzania

This study examines the determinants of the level of digital technology adoption among SMEs in the fruit juice processing industry in Tanzania. Anchored in the Unified Theory of Acceptance and Use of Technology and complemented by the Technology Acceptance Model and the Technology–organisation–environment 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. 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. Further, the results of the generalised ordered logistic regression show that perceived usefulness strongly drives progression to a higher adoption level, whereas competitive pressure mainly stimulates adoption at low and moderate levels. Furthermore, female-owned SMEs are more likely to achieve a higher adoption level than male-owned SMEs. Contrary to expectations, financial capacity alone does not translate into higher adoption, whereas SMEs with more employees are less likely to remain at the low adoption level and more likely to attain moderate and high adoption levels. SMEs with adequate infrastructure are more likely to progress beyond low adoption and consolidate their adoption at a moderate level. However, infrastructure availability alone is insufficient to drive adoption at the highest levels. This study advances the digital technology adoption literature for fruit juice processing SMEs by analysing the progression from low to high levels of DTA. This study further extends the application of the UTAUT, TAM, and TOE frameworks in the Tanzania context and offers new insights into gender differences in digital technology adoption.