Success Factors of Agribusiness Digital Market Places in Tanzania, the case of selected agribusiness firms participating in DMP in Tanzania

This research paper explores the underutilized digital market potential in the agribusiness sector of Tanzania, contrasting it with the global prevalence of such platforms in other countries. The study delves into the factors contributing to the limited adoption of digital marketplaces in Tanzania, highlighting the lack of awareness and financial constraints as major impediments. The The research aimed to identify the key success factors for agribusiness digital marketplaces in Tanzania. It specifically investigates the impact of technological competence, financial commitment, industrialization policies, and organizational e-readiness on the adoption of digital marketplaces. To accomplish this, the study employed a quantitative research design, surveying 200 agribusiness firms across seven regions of Tanzania. The findings revealed a readiness among Tanzanian agribusinesses to embrace digital information technology due to its potential in reducing information asymmetry, transactional costs, and facilitating demand-supply matching. However, the study also identifies a lack of government support and incentives to promote digital solutions in the agribusiness supply chain in Tanzania. The research underlines that the success of agribusiness digital markets is heavily influenced by technological competence, financial commitment, and organizational e-readiness. Greater financial commitment leads to higher technological competence, enabling firms to leverage digital technologies for production and marketing. The paper recommends various initiatives to promote the widespread adoption of digital marketing technologies in Tanzania's agribusiness sector. Government agencies, policymakers, development institutions, BDS providers, financial service institutions, and the ICT industry should collaborate to make digital marketplaces economically appealing to key stakeholders, including agro-processors, farmers, input suppliers, logistics companies, traders, and consumers. This collaborative effort is vital for enhancing the applicability and usage of digital marketplaces in Tanzania's agribusiness sector. Keywords: Digital Market Places, Success factors, Agri business firms