African Journal of Accounting and Social Sciences

Unravelling the Effects of Perceived Severity of Penalties on Income Tax Compliance for Tanzanian Small and Medium Enterprises

Priscus Munguasifiwe — 2025-06-10

Enhancing tax compliance behaviour among SMEs will improve revenue
collection, thus enable government to finance social-economic welfare of its
citizens. Therefore, this study investigated the effects of perceived severity of
penalties on individual income tax compliance among Tanzanian Small and
Medium Enterprises. A cross-sectional survey of 382 SMEs was conducted in
six tax regions of Tanzania – Kinondoni, Kariakoo, Temeke, Mtwara, Singida
and Tabora, selected using simple random technique. Descriptive and Partial
Least Square Equation Modelling were used for data analysis. The findings of
the study show that perceived severity of penalties has positive and significant
effects on the decision of the individual to register with the tax system and make
correct declaration of income. On the other hand, it has a positive, but
insignificant effect on the decision of the taxpayer to pay taxes within due dates.
The findings imply that penalties are more effective in enhancing compliance
behaviour at the registration and declaration than on payment stage. Thus,
government through the Tanzania Revenue Authority should continue to use
penalties and other administrative measures including inter alia, taxpayer
education, good customer care and services, to enhance tax compliance
behaviour among SMEs

The Impact of Financial Risk on Financial Performance: A Case of Listed Manufacturing Companies in Tanzania

Sadiki Sumawe — 2025-06-10

The study assessed the impact of financial risk on the financial performance of
listed manufacturing firms in Tanzania at the Dar es Salaam Stock Exchange
(DSE). Proxies used to represent financial risk, as independent variables, were
credit risk and liquidity risk, and financial performance metrics were return on
assets (ROA) and return on equity (ROE). A quantitative research design was
used to gather secondary data from audited financial statements of listed
manufacturing firms at DSE from 2008 to 2022 (15-year period). The balanced
panel regression model was used to test the hypotheses by using Stata 11 software
as a tool for analysis. The result reveals that liquidity risk exerts a positive and
significant impact on ROA. In contrast, credit risk exerts a negative and
significant impact on ROE. These findings highlight the importance of enhancing
risk management practices and prudential oversight to safeguard
a manufacturing firm’s financial performance. The analysis may assist investors,
both current and prospective, government officials, financial managers, brokers,
and the authority dealing with investments in the manufacturing companies listed
under DSE to formulate policies and analyze their investments to increase value
to stakeholders and look for a better way of stabilizing the economy of these
companies and the national economy in general

Can international buyer-supplier relational attributes influence the intention to source from local suppliers? A case study of International Oil Companies in Tanzania

Hemed Juma — 2025-06-10

This study explores whether International Oil Companies (IOC) intending to
source their non-consultancy services from local providers are affected by their
respective strategic relationships with international service providers.
International Oil Companies (IOC) exploring oil and gas in Tanzania were used
as a case study to represent the group of buyers. This study adopted Industrial
Marketing and Purchasing perspectives (IMP) on buyer-supplier relationships,
where the structural and functional attributes of buyer-supplier relationships
were examined. Structural Attributes include continuity, complexity,
interdependence, and trust, while Process Attributes include adaptation, conflict,
cooperation, socialisation, and formalisation. Buyers’ intention to source from
local suppliers was measured by four dimensions: presence of sourcing policy
from local suppliers, presence of activities for creating awareness among local
suppliers about supply opportunities, presence of relaxed evaluation criteria, and
payment scheme that favours local suppliers and establishes a central unit for
coordinating all activities intended to facilitate sourcing from local suppliers. A
survey design was used, whereby primary data were collected from 189
employees working at middle- and top-level positions in oil and gas companies.
Data analysis involved examining descriptive statistics for respondents’
attributes and inferential statistical analysis, where relationships between the
study variables were examined. The findings show that, given the new market
constraints and without any forceful inducement, OICs will consider sourcing
from local suppliers despite the ongoing strategic relationship with international
suppliers. Therefore, host countries should focus on developing the competence
of local suppliers to meet IOCs’ expectations.

The Value of Professionalism: Implication for Value for Money in Projects Implemented by Force Account Procurement Method in Tanzania

Gabriel Kibona — 2025-06-10

This study aimed to describe the implication of professionalism on Value for
Money (VFM) in the construction projects of higher learning institutions
implemented by force account procurement method in Tanzania. Positivism
philosophy was employed through collection of quantifiable facts from the force
account team members of the selected higher learning institutions in Tanzania.
Census approach was used to approach 64 members. The data collected was
analyzed using ordinal logistic regression at a confidence interval of 95%. The
null hypotheses were rejected implying that knowledge, experience and integrity
are the important parameters of professionalism in implementation of force
account projects. Consequently, acknowledgement of professionalism in force
account projects realizes VFM in construction projects. Practically this study
shows how knowledge, experience and integrity of force account team members
helps to realize VFM in force account projects in the context of Tanzania.
Correspondingly this study has multidisciplinary contribution involving a blend
of management, procurement, and project management. Theoretically, the study
enlightens professionalism as a resource advantage as stipulated by Resources-
Based View Theory. Also, the study contributes to responsible management goal
and that of quality education for all as encouraged by SDGs. This study limited
in disclosing the link between professionalism and VFM. Contemporarily, since
environmental issue is a global agenda, it is imperative to include it in this study.
Also, Sustainable Development Goals (SDGs) champion the application of
Corporate Social Responsibility. Generally, future studies should focus on the
application of CSR in force account projects.

Factors Influencing Mobile Money Adoption in Tanzania

Kamugisha Rwechungura — 2025-06-10

Financial inclusion is being promoted in most economies as it fosters economic
development. Traditionally, banks were used to promote the agenda of financial
inclusion until about two decades ago when Mobile Network Operators (MNOs)
introduced mobile money services. Since then, there has been a rise in the number
of individuals using mobile money services. Due to this, studies have been carried
out to investigate the factors responsible for adopting mobile money globally.
Despite thorough research in this area, aspects such as affordability and
integration of mobile money with other financial services and promotions have
not been thoroughly studied. Therefore, with its unique focus on these unexplored
new aspects, this study was carried out to fill this gap using Tanzania as a case
study. Along with the common factors such as trust, performance, and ease of
use, the study used primary data collected through an online survey from 384
respondents. It was anchored on the Technology Acceptance Model (TAM) and
employed Semi-Structural Equation Modeling (SEM) as the analysis method. The
study found that perceived risk has a negative but statistically insignificant
influence on adopting mobile money, with a coefficient of -0.181 and a p-value
of 0.078. Results also indicate that perceived trust, performance expectancy, ease
of use, social influence, affordability, integration of mobile money with other
financial services, and promotion have a positive and statistically significant
influence on mobile money adoption, with coefficients of 0.694, 0.627, 0.623,
0.605, 0.101, 0.083, and 0.438 respectively, and a p-value of less than 0.005.
These findings highlight the need for MNOs to build trust through improved
security measures, offer affordable services, integrate mobile money with other
financial platforms, and promote their services to increase adoption.
Policymakers are encouraged to create regulatory frameworks that promote
consumer trust, ensuring a safe and reliable mobile money ecosystem.

Leadership Styles and their Influence on Employees’ Job Motivation in Ludewa District Council

Frank Mchungwa — 2025-06-10

The purpose of this paper is to look into how Tanzania's Ludewa District Council
employees feel about their jobs and the impact of leadership styles. In today's
society, it is difficult for firms to make the necessary investments to develop their
leadership capabilities. This study aims to ascertain how Ludewa District
Council employees' job motivation is impacted by the leadership styles used by
the organization. Few researches are done in rural locations like Ludewa
District. Studies from more urbanized locations may not fully represent the
manner in which the socioeconomic, cultural, and infrastructure aspects of
Ludewa District influence leadership styles and their effect on employee
performance. The study specifically looks at how employees' motivation for their
jobs is affected by democratic, transformational, and laissez-faire leadership
philosophies. Purposive sampling was used to select representatives from among
the 80 respondents whose responses were obtained through questionnaires. The
analysis section uses the Statistical Package for Social Sciences software to
examine research goals. The dependent variable was in the nominal scale of
measurement. The study demonstrates that a democratic style of a leader inspires
more motivation among Ludewa District Council staff members. It illustrates
how a democratic leadership style allows for group engagement and offers all
employees an equal chance of conceiving the understanding and achievement of
corporate goals. In order to better suit the work environment and boost employee
motivation, which in turn increases job productivity, the study advises
management and leaders at the Council to adopt certain leadership styles.

The Influence of Social Media Marketing on Business Performance: An Empirical Investigation of the Supermarket Industry in Tanzania

Arnold Njunwa — 2025-06-10

This study aimed at examining the influence of social media marketing on the
performance of businesses, with a specific focus on supermarkets in Dar es
Salaam. The research employed an explanatory research design and a sample of
200 respondents was selected through purposive sampling. Data analysis was
conducted using multiple regression analysis with the aid of Statistical Package
for Social Sciences (SPSS). The findings revealed that social media performance,
analytics and an active presence have a positive and significant influence on the
business performance of supermarkets in Dar es Salaam. The study concluded
that social media marketing contributes significantly to enhancing the overall
business performance of supermarkets. This underscores the pivotal role of
social media marketing in driving the success of supermarkets in Dar es Salaam
region. It is recommended that, first, future research can use objective data on
financial performance metrics. Second, future studies might consider other
industries in which the link between social media marketing and business
performance can be of interest for example airlines and tourism industries.

Determinants of Employees’ Retention in Tanzanian Local Government Authorities: Insights from Njombe District Council

Hezbon Mtawa — 2025-06-10

This paper adopted equity theory to investigate the factors of employee retention
in Local Government Authorities (LGAs) with insights from Njombe District
Council by using a cross-sectional research design. The study employed a mixed
methods approach whereby qualitative was the major approach supported partly
with quantitative approach. Data were collected from 60 randomly selected
respondents and from 8 key informants. The study used survey and interview
methods with questionnaires and interview guides as data collection tools
respectively. The descriptive statistics was used to analyse quantitative data
while the qualitative data were analysed by content analysis. The findings posit
that, basic salary/pay rate, fringe benefits, training and development
opportunities, existence of chances for career growth and development and
adequacy of working facilities and resources are the leading factors in LGAs
employees’ retention. Consequently, the study achieved its objectives and
determinants for employees’ retention are well identified. The study therefore
recommends that there should be harmonisation of salary and benefit schemes
across the public sector in Tanzania as a means to mitigate the transfer of LGAs
employees to other public sectors.

Challenges Facing the Growth of Small and Medium Enterprises in Tanzania: A Case of Mbeya’s Mwanjelwa Market

Emmanuel Tonya — 2025-06-10

The study investigated the challenges hindering the growth and sustainability of
Small and Medium Enterprises (SMEs) in Tanzania, focusing on implementing
the SME Policy 2003. The main objective was to assess the effectiveness of SME
policy in fostering business growth, particularly in the Mwanjelwa Market in
Mbeya City. The study employed a descriptive design with a sample size of 90
respondents, selected using convenience sampling. The key findings indicate that
SMEs face significant challenges related to access to finance, complex regulatory
environments, limited market access, inadequate skills and training, and slow
technological adoption. The under-utilization of government-built infrastructure
and insufficient implementation of supportive policies exacerbate these
challenges. The study found that the underutilization of storey buildings for small
businesses is that business people and customers do not prefer searching for or
buying upstairs. The study concludes that, although the Tanzanian government
has supported SMEs, more must be done to address these barriers effectively. It
recommends enhancing financial literacy programs, simplifying the regulatory
framework, improving market access through infrastructure development and e-
commerce, investing in business management training, and promoting
technology adoption among SMEs. These measures would be essential for
creating a conducive environment for SME growth and ensuring long-term
sustainability.

Determinants of Enrolment Rate Decline in Higher Learning Institutions: A Case of the Tanzania Institute of Accountancy

Hemed Juma — 2025-06-10

The decline in the enrolment rate is not an uncommon trend in most higher learning
institutions, and the reasons for this have never been common to all universities. This
study contextually identifies the key determinants of enrolment rate decline for
procurement and logistics management (PLM) programs in public higher learning
institutions using the Tanzania Institute of Accountancy (TIA) as a case study. This study
adopted a cross-sectional research design to collect empirical data from 302
respondents pursuing various programs offered by the institute, including Accountancy
(ACC), Business Administration (BA), Marketing & Public Relations (MPR), Human
Resource Management (HRM), and Public Sector Accounting and Finance (PSAF).
Data were analysed using SPSS 24, where a multiple regression model was developed
to determine the linear effects of the nine determinants of enrolment rate decline. The
results show that the key determinants of enrolment decline include entry qualifications,
lack of information about the PLM program, lack of passion for the PLM program,
negative community myths, and lack of social support. Other determinants, such as
students’ ambitions, lack of funds, lack of information about the labour market, and
inadequate training facilities, have an insignificant influence on enrolment rate decline.
This finding implies that information regarding the PLM program is very important.
Therefore, it is important to disseminate information about the PLM program’s
structure, cost, and duration to potential applicants.