Technology Adoption and User BehaviourEntrepreneurship Studies and InfluencesInnovation and Knowledge Management

Daud Abda Chaniluma, David David, Ismael Amini

2026.2.14Studies in Science of Science

DOI: 10.65967/siss.v44i2.131

Abstract

This study examines the relationship between technological absorptive capacity and SME business performance, with e-business innovation as a mediating mechanism. Using data from 179 sunflower oil–processing SMEs in Tanzania and applying PLS-SEM, the findings show that technological absorptive capacity significantly enhances business performance, both directly and indirectly through e-business innovation. The mediation effect is partial, indicating that absorptive capacity influences performance partly by fostering e-business innovation. Multigroup analysis reveals no statistically significant differences between SMEs in the Dodoma and Singida regions, although effect sizes are generally stronger in Dodoma, where the mediating role of e-business innovation is also more pronounced. Overall, the study provides empirical evidence of the importance of technological absorptive capacity and e-business innovation in improving SME performance and offers relevant implications for managers, policymakers, and researchers.

Citation format

CHANILUMA, Daud Abda; DAVID, David; AMINI, Ismael. SME performance outcomes: The role of technological absorptive capacity and e-business innovation. Studies in Science of Science, 2026, 44(2): 97–113.