I have following setup

• ubuntu virtual box
• have master jenkins running on container
• added docker slave in order to run the build
• enabled the docker .api service on i.e. ExecStart=/usr/bin/docker daemon -H fd:// -H tcp://0.0.0.0:4243 and able to test
• however, i have created the job and it is failing, showing up the error "Failure to create Docker Slave java.io.IOException: error=2, No such file or directory

Log:
Failure to create Docker Slave
java.io.IOException: error=2, No such file or directory
    at java.lang.UNIXProcess.forkAndExec(Native Method)
    at java.lang.UNIXProcess.<init>(UNIXProcess.java:247)
    at java.lang.ProcessImpl.start(ProcessImpl.java:134)
    at java.lang.ProcessBuilder.start(ProcessBuilder.java:1029)
Caused: java.io.IOException: Cannot run program "docker": error=2, No such file or directory
    at java.lang.ProcessBuilder.start(ProcessBuilder.java:1048)
    at hudson.Proc$LocalProc.<init>(Proc.java:245)
    at hudson.Proc$LocalProc.<init>(Proc.java:214)
    at hudson.Launcher$LocalLauncher.launch(Launcher.java:850)
    at hudson.Launcher$ProcStarter.start(Launcher.java:384)
    at hudson.Launcher$ProcStarter.join(Launcher.java:395)
    at it.dockins.dockerslaves.drivers.CliDockerDriver.serverVersion(CliDockerDriver.java:449)
    at it.dockins.dockerslaves.drivers.CliDockerDriver.<init>(CliDockerDriver.java:78)
    at it.dockins.dockerslaves.drivers.PlainDockerAPIDockerDriverFactory.forJob(PlainDockerAPIDockerDriverFactory.java:43)
    at it.dockins.dockerslaves.DefaultDockerProvisionerFactory.createProvisionerForClassicJob(DefaultDockerProvisionerFactory.java:95)
    at it.dockins.dockerslaves.DockerSlaves.createStandardJobProvisionerFactory(DockerSlaves.java:101)
    at it.dockins.dockerslaves.ProvisionQueueListener.prepareExecutorFor(ProvisionQueueListener.java:93)
    at it.dockins.dockerslaves.ProvisionQueueListener.onEnterBuildable(ProvisionQueueListener.java:62)
    at hudson.model.Queue$BuildableItem.enter(Queue.java:2582)
    at hudson.model.Queue$BuildableRunnable.run(Queue.java:2886)
    at hudson.model.Queue.maintain(Queue.java:1515)
    at hudson.model.Queue$1.call(Queue.java:321)
    at hudson.model.Queue$1.call(Queue.java:318)
    at jenkins.util.AtmostOneTaskExecutor$1.call(AtmostOneTaskExecutor.java:108)
    at jenkins.util.AtmostOneTaskExecutor$1.call(AtmostOneTaskExecutor.java:98)
    at jenkins.security.ImpersonatingExecutorService$2.call(ImpersonatingExecutorService.java:71)
    at java.util.concurrent.FutureTask.run(FutureTask.java:266)
    at hudson.remoting.AtmostOneThreadExecutor$Worker.run(AtmostOneThreadExecutor.java:110)
    at java.lang.Thread.run(Thread.java:748)