The Complexity of E-Marketing and Its Influence on the Performance of Gas Companies in Tanzania: Insights from Innovation Diffusion Theory
Keywords:
Complexity of Electronic Marketing, Company Performance, Gas Energy Sector in Tanzania, Innovation Diffusion Theory, Structural Equation Modeling
Abstract
This paper focuses on investigating the complexity of electronic marketing on the performance of gas energy companies in Tanzania, with insight from Innovation Diffusion Theory. Data were gathered using a structured questionnaire administered to a convenience sample of 302 employees from Gas Company Tanzania Ltd, Taifa Gas Ltd, Lake Gas Ltd, Oryx Gas Ltd, and Pan African Energy Ltd. The study employed an explanatory research design. Structural equation modeling was applied to analyze the data and identify the causal link between company performance and the complexity of electronic marketing. Results show a standardized path coefficient of .388 for COMPL5 <--- COMPL, indicating that COMPL5 is a key reference indicator for the construct COMPL. Additionally, the path coefficients for COMPL1 <--- COMPL (1.838, CR = 5.777, p < 0.001) and COMPL2 <--- COMPL (1.960, CR = 5.685, p < 0.001) provide strong evidence of significant relationships. The high critical ratios and statistical significance of these paths further support the conclusion that the complexity of electronic marketing positively influences the performance of gas energy companies in Tanzania. The study concluded that electronic marketing directly influences the performance of gas companies through the complexity of technology. These results advise businesses in the gas sector to prioritize investments in training programs to enhance the ease of learning and application of electronic marketing tools. Organizations should also ensure that staff has access to structured learning opportunities and user-friendly systems. Reducing the entry barrier for staff through simplified tool interfaces and consistent training can help maximize their efficiency in using electronic marketing solutions. Gas businesses should also focus on developing internal knowledge and fostering a culture of appreciation for the advantages of electronic marketing.
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References
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42. Yohana, A., Magali, J., & Shayo, F. (2024). Social Media Marketing and Performance of Gas Energy Companies: A Systematic Literature Review. Pan-African Journal of Business Management, 8(2), 225-237.
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2. Antonelli, C., & Colombelli, A. (2023). The Creative Response: Knowledge and Innovation. Cambridge University Press.
3. Arokodare, M. A., & Asikhia, O. U. (2020). Entrepreneurial orientation as a determinant of oil and gas service firm performance in Nigeria: The moderating role of external environment. Journal of Management and Strategy, 11(2), 1-17.
4. Arokodare, M. A., & Asikhia, O. U. (2020). Strategic agility: Achieving superior organizational performance through strategic foresight. Global Journal of Management and Business Research, 20(3), 7-16.
5. Atkin, O. K., Bloomfield, K. J., Reich, P. B., Tjoelker, M. G., Asner, G. P., Bonal, D., ... & Zaragoza‐Castells, J. (2015). Global variability in leaf respiration in relation to climate, plant functional types and leaf traits. New Phytologist, 206(2), 614-636.
6. Bollen, K. A. (1995). Structural equation models that are nonlinear in latent variables: A least-squares estimator. Sociological methodology, 223-251.
7. Cheng, L., & Liu, H. (2015). The role of complexity in fostering innovation: A study in the telecommunications industry. Journal of Technology Management, 32(4), 235–250.
8. Chicha, M. (2024). Factors influencing the adoption of e-marketing as a mode of marketing by SMEs in Zambia: a case of SMEs in the tourism industry (Doctoral dissertation, The University of Zambia).
9. Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.
10. da Silva, A. S. L., Neto, A. R., Luna, R. A., de Oliveira Cavalcante, G. T., & de Moura, A. R. (2018). Mobile marketing: An approach on advertising by SMS. Brazilian Journal of Management/Revista de Administração da UFSM, 11(4), 1012-1029.
11. Dowling, G. R., & Midgley, D. F. (1978). The decision process models of Antarctic travel innovators. Australian Journal of Management, 3(2), 147-161.
12. Gao, J., Siddik, A. B., Khawar Abbas, S., Hamayun, M., Masukujjaman, M., & Alam, S. S. (2023). Impact of E-commerce and digital marketing adoption on the financial and sustainability performance of MSMEs during the COVID-19 pandemic: An empirical study. Sustainability, 15(2), 1594.
13. Garcia, A., & Lopez, M. (2021). The role of organizational complexity in the financial performance of multinational corporations. Journal of International Business Studies, 54(2), 321-340
14. Harrison, P., & Grant, T. (2015). Leadership and organizational culture in managing complexity: Insights from multinational corporations. Global Business Review, 21(2), 89–105.
15. Hoe, S. (2008). Issues and procedures in adopting structural equation modeling techniques. Journal of Applied Quantitative Methods, 3(1), 76–83.
16. Hox, J., & Bechger, T. (2014). An introduction to structural equation modeling. Family Science Review, 25(4), 1–17.
17. Jöreskog, K. G., Olsson, U. H., & Wallentin, F. Y. (2016). Confirmatory factor analysis (CFA). In Multivariate analysis with LISREL (pp. 283-339). Cham: Springer International Publishing.
18. Juhász, R., Squicciarini, M. P., & Voigtländer, N. (2024). Technology adoption and productivity growth: Evidence from industrialization in France. Journal of Political Economy, 132(10), 3215-3259.
19. Kazungu, I., Panga, F. P., & Mchopa, A. D. (2015). Impediments to adoption of e-marketing by Tanzanian small and medium sized enterprises: An explanatory model.
20. Kim, K., Jang, W., Kim, K. A., & Hur, C. H. (2023). The Intersection of Technology, Media, and Sport: Conceptualizing Digital Sport. In Routledge Handbook of Sport Communication (pp. 352-364). Routledg.
21. Kocak, M., Olusegun George, E., Pyne, S., & Pounds, S. (2013). An empirical Bayes approach for analysis of diverse periodic trends in time-course gene expression data. Bioinformatics, 29(2), 182-188.
22. Kumar, S., & Sinha, R. (2015). Operational complexities in logistics: Cost versus innovation. Journal of Supply Chain Management, 12(6), 21–36.
23. Mihai, S., Yaqoob, M., Hung, D. V., Davis, W., Towakel, P., Raza, M., ... & Nguyen, H. X. (2022). Digital twins: A survey on enabling technologies, challenges, trends and future prospects. IEEE Communications Surveys & Tutorials, 24(4), 2255-2291.
24. Miller, J., Patel, S., & Ravi, R. (2015). Risks of unmanaged complexity in the financial sector. Finance and Accounting Research Journal, 34(1), 78–95.
25. Moctezuma, N. P. B., & Rajagopal. (2016). Role of digital marketing in driving business performance in emerging markets: an analytical framework. International Journal of Business Forecasting and Marketing Intelligence, 2(4), 291-314.
26. Mwakatage, B. J., Raphael, G., & Shayo, F. (2024). Effects of Self-Efficacy on Facilitating Prevention Intention of Fire Outbreaks in Public Markets in Tanzania: A Case of Dar es Salaam Region. Pan-African Journal of Business Management, 8(2), 1-13.
27. Ngochi, B. N., & Kihara, A. (2019). Effect of digital marketing strategies on growth of small medium enterprises in liquefied petroleum gas distribution in Nairobi city county, Kenya. Journal of Business and Strategic Management, 4(1), 88-109.
28. Oyerinde, A. J., Olatunji, O. C., & Adewale, O. A. (2018). Corporate social responsibility and performance of oil and gas industry in Nigeria. EKSU Journal of the Management Scientists, 2(1), 97-106.
29. Park, H., Lee, J., & Kim, S. (2015). Structured complexity for adaptability: Lessons from volatile markets. Business Strategy Review, 15(3), 45–60.
30. Park, Y., & Mithas, S. (2020). Organized complexity of digital business strategy: A configurational perspective. Mis Quarterly, 44(1).
31. Ravi, R., & Patel, S. (2015). Challenges of complexity in pharmaceutical industries: A risk management perspective. Pharmaceutical Management Journal, 9(2), 33–49.
32. Rogers, E. (1962). Diffusion of innovation. New York: Free Press New York.
33. Rogers, E. M., & Cartano, D. G. (1962). Methods of measuring opinion leadership. Public opinion quarterly, 435-441.
34. Roman, R. (2003). Diffusion of innovations as a theoretical framework for telecenters. Information Technologies & International Development, 1(2),53.
35. Skrondal, A., & Rabe‐Hesketh, S. (2007). Latent variable modelling: A survey. Scandinavian Journal of Statistics, 34(4), 712-745.
36. Smith, R., & Johnson, L. (2015). Technological complexity and performance: Evidence from manufacturing companies. Technology and Innovation Journal, 19(2), 112–125.
37. Tahanian, M., Ramezani, M., Ghasemzade Khosroshahi, A., Rezvani Chamanzamin, M., & Fakhimiazar, S. (2022). Role of Social Media Advertising in the Marketing Performance of Sepahan Oil Company by Total Interpretive Structural Model (TISM). Petroleum Business Review, 6(3), 17-39.
38. Tanaka, Y., & Nakamura, K. (2015). Collaborative problem-solving as a mechanism for managing complexity in the automotive industry. Journal of Automotive Studies, 10(4), 56–72.
39. Tokarčíková, E., & Kucharčíková, A. (2015). Diffusion of innovation: The case of the Slovak mobile communication market. International Journal of Innovation and Learning, 17(3), 359-370.
40. Turulja, L., & Bajgorić, N. (2016). Innovation and information technology capability as antecedents of firms’ success. Interdisciplinary Description of Complex Systems: INDECS, 14(2), 148-156.
41. Yohana, A., Joseph M., and France S. (2025) The impact of adoption relative advantage of technology on firm performance: Applying innovation diffusion theory in the Gas energy Sector of Dar es Salaam, Tanzania. Business Education Journal, 11(1), 102-125.
42. Yohana, A., Magali, J., & Shayo, F. (2024). Social Media Marketing and Performance of Gas Energy Companies: A Systematic Literature Review. Pan-African Journal of Business Management, 8(2), 225-237.
43. Yu, C., Zhang, Z., Lin, C., & Wu, Y. J. (2020). Can data-driven precision marketing promote user AD clicks? Evidence from advertising in WeChat moments. Industrial Marketing Management, 90, 481-492.
44. Zakharkina, L., Rubanov, P., Alibekova, B., Zakharkin, O., & Moldashbayeva, L. (2022). The impact of digital transformation in the accounting system of fuel and energy complex enterprises (International Experience). International Journal of Energy Economics and Policy, 12(5), 152-161.
Published
2025-10-31
How to Cite
Yohana, A., Shayo, F., & Mbura, S. (2025). The Complexity of E-Marketing and Its Influence on the Performance of Gas Companies in Tanzania: Insights from Innovation Diffusion Theory. European Scientific Journal, ESJ, 21(28), 64. https://doi.org/10.19044/esj.2025.v21n28p64
Section
ESJ Social Sciences
Copyright (c) 2025 Augustino Yohana, France Shayo, Sophia Mbura
This work is licensed under a Creative Commons Attribution 4.0 International License.
