Do internet marketing capabilities interact with the effect of procedural capabilities for public procurement participation on SMEs’ sales performance?

This study aims to examine the influence of procedural capabilities for public procurement participation on small and medium enterprises’ (SMEs) sales performance in Tanzania. Also, the study establishes the interaction effect of internet marketing capabilities on the relationship between procedural capabilities and sales performance.

The authors conducted confirmatory factor analysis and PROCESS macro for simple interaction analysis to analyse cross-sectional data that were obtained through questionnaire from surveyed SMEs’ managers. The included SMEs are those that are involved in supplying goods, services and works to public entities in Dodoma, Tanzania.

The findings reveal that procedural capabilities for participation in public procurement enhance SMEs to improve sales performance. Also, there is a significant and positive relationship between internet marketing capabilities and sales performance. Lastly, internet marketing capabilities strengthen the relationship between procedural capabilities and sales performance.

This study is a wake-up call to SMEs to better comprehend public procurement procedures and e-business practices to use the available public procurement opportunities. It is argued that SMEs should invest in technology to market their businesses through social media and online platforms. According to the study, SMEs may benefit from improving their sales performance by fully utilising their internet marketing capabilities and participating in public procurement opportunities.

This study adds to the two main streams of literature that emphasise harnessing public procurement opportunities for SMEs (through public procurement participation) and leveraging internet marketing capabilities for SMEs to improve their sales performance.