Barriers Hindering Digital Transformation in SMEs

Abstract

The chapter aims to find interdependencies between barriers that hinder adoption of digital transformation technologies in small and medium firms. Barriers were identified using an extensive literature review and finalized after consulting an expert panel. Next, a pairwise questionnaire was developed, and responses from essential stakeholders working with small and medium firms were collected. Data were analyzed using the DEMATEL technique. Salient challenges for implementing digital transformation technologies were identified, and the cause-and-effect relationship between the barriers was established. Lack of proper digital vision and strategy was identified as the most critical barrier that hinders adoption of digital transformation technologies in small and medium firms. Digital technologies help to improve the efficiency of the firms and improve resource utilization by facilitating timely and accurate decision making. Hence, overcoming the identified challenges in transformation will improve the operations of the production system and organizational process.