Digital Transformation in SMEs: Overcoming Barriers to Adop-tion

Abstract

This study aims to explore the barriers faced by small and medium-sized enterprises (SMEs) in adopting digital transformation, providing insights into the organizational, technological, cultural, and external challenges they encounter. A qualitative research design was employed, using semi-structured interviews to collect data from 26 participants representing diverse industries and roles within SMEs. The interviews were conducted online, and the transcripts were analyzed using thematic analysis through NVivo software. The study continued until theoretical saturation was achieved. The study identified four main themes as barriers to digital transformation: organizational challenges (including lack of digital skills and financial constraints), technological barriers (such as legacy systems and cybersecurity concerns), cultural and behavioral factors (resistance to change and lack of employee buy-in), and external obstacles (regulatory constraints and market dynamics). These challenges were experienced differently across sectors and were influenced by the resources and strategies available within the SMEs. The findings underscore the complexity of digital transformation for SMEs, highlighting the need for tailored support, including digital skills training, leadership development, and external support mechanisms. Addressing these barriers can enable SMEs to leverage digital technologies for competitive advantage and operational efficiency.