Navigating Digitalization: AHP Insights for SMEs' Strategic Transformation

Abstract

The digital revolution presents Small and Medium Enterprises with potential and danger in the dynamic world of modern business. However, several substantial obstacles are in the way of digitalization, making it difficult to move forward. This study sets out to discover and remove these hurdles to fully realize the potential of digital transformation for small and medium-sized enterprises (SMEs). It looks through the Analytical Hierarchy Process (AHP) prism. Our research identifies five types of barriers, each presenting different hurdles for digitalization: organizational, technological and infrastructure, legal, social-cultural, and strategic. We investigate several options in response, such as government regulations, technology acquisition, management support, cybersecurity, and training. Using the AHP methodology, we give each alternative a normalized value and find that management support is the most critical, closely followed by cybersecurity, government regulations, training, and technology acquisition. With these discernments, SMEs can deliberately arrange their endeavours to eliminate obstacles, clearing the path for triumphant digital transformation and sustained expansion.