The emergence of e-commerce has affected the way of doing business all over the world. Tourism which is regarded as information intensive sector is the mostly affected sector by technology revolution and its traditional trading structures have been totally changed. The adoption and use of e-commerce in tourism sector is regarded as a tool to widen market reach and improve efficiency and effectiveness of business operations. The degree of impact of e-commerce use on business performance depends on the intensity of its usage in organization’s key value-chain activities. However, the intensity of e-commerce use is influenced by technological, organizational and environmental (TOE) contextual factors. Based on TOE model and the existing literature on post-adoption use of e-commerce, a set of factors that affect the intensity of e-commerce use in Tanzanian tourism sector was identified. A survey was conducted with 181 Tanzanian tourism firms that have already adopted e-commerce and structural equation modeling (SEM) was used to analyze the data. The findings indicated that the scope of e-commerce use has a positive impact on business performance in terms of improved internal processes, competitive position, customer service delivery, overall business performance and increased customer base. The scope of e-commerce use is affected positively by pressure intensity and perceived benefits and negatively by barriers to e-commerce use. However, technology competence was found to be an unimportant factor in predicting the scope of e-commerce use as majority of tourism firms have their websites managed by the IT vendors. The findings have highlighted key areas that require immediate actions from both the government and private sector in order to promote a successful growth of e-commerce in the country.
Keywords: e-commerce, tourism sector, e-commerce value, structural equation modeling