Barriers of Digitalizing the Business Process among Yemeni Enterprises: Empirical Investigation

Abstract

This study aims to gain a perspective on the barriers faced by small and medium enterprises in Yemen in terms of adopting digitalization in their business process. With the help of data of 330 enterprises, the results indicate the severity of the environmental barriers among enterprises (Mean = 4.26, S.D. = 0.732), followed by operational barriers (Mean = 3.76, S.D. = 0.994), technical barriers (Mean = 3.54, S.D. = 1.04) and finally economic barriers (Mean = 3.51, S.D. = 1.13), while individual barriers are not found effective barriers (Mean = 2.27, S.D. = 0.7.38). Further, the proposed model to measure these barriers is found fit (χ2/df = 3.63, GFI = 0.993, AGFI =0.988, CFI = 0.994, RMSEA = 0.08, RMSR = 0.07). The study suggests providing official support, training programs to SMEs owners and managers. It adds to the scant literature related to least developed economies.