Electronic Payments and the Performance of Tour Operators' Supply Chain in Tanzania Tourism Industry

Document Type : Research Paper


College of Business Education, Dar es Salaam, Tanzania


The number of international visitors in Tanzania has consistently remained around one million since 2012. The current study aimed to investigate the effects of electronic payment in enhancing financial flow on the performance of tour operators' supply chains, guided by the Technology Acceptance Model. A convergent parallel mixed-method design was employed using a sampling frame comprised of 543 tour operators. A sample of 230 respondents was selected using multi-stage sampling. Primary data were collected using a self-administered structured questionnaire and an interview guide. Quantitative data were analysed using descriptive statistics to compute percentages, means of respondents’ answers, and cross-tabulations. Inferential statistics employing Structural Equation Modeling was applied to test hypotheses through IBM SPSS Amos version 20. Qualitative data were thematically analysed using NVivo version 20. The findings revealed that electronic payment positively and significantly influenced tour operators’ supply chain performance. The results of the Structural Equation Modeling using three indicators namely, perceived security, transaction procedures, and regulatory framework, indicate that electronic payment directly influenced tour operators’ supply chain by increasing sales, Return on Assets, and profit. The study recommends that both the government and tour operators invest in modern electronic payment technologies to influence consumers’ purchase decisions, thereby increasing consumers’ spending. Strategic efforts and collaboration between stakeholders, including government bodies, industry regulators, and tour operators, are essential to create a secure, reliable, and trustworthy environment for the success of e - e-payment systems usage.


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