Obstacles in Business Process Management (BPM) Implementation and Adoption in SMEs

Abstract

A business’s decision for utilizing a technology is based on reviewing the factors influencing this utilization and its advantages. Technology deployment greatly affects the way business is conducted, the optimality of resource utilization and Increase in the business’s competitive advantage. Factors influencing this utilization include various organizational, technological (innovation), environmental and individual characteristics. Characteristics of small and medium enterprises have a double-edged razor role in the effective utilization of business process management. These characteristics can create barriers in this utilization and become a great challenge in this issue. Other characteristics can ease this utilization and accelerate the adapting to the new system. This study, based on a mixed method approach, examines the main inhibiting factors in implementation of business process management. In the qualitative phase, these factors are identified through reviewing related research and interviewing experts of the field. Then, based on these findings, a questionnaire is designed. In the quantitative phase, data gathered from 122 samples from 28 businesses, active in Iranian e-retail sector and finally the identified factors were ranked based on their perceived importance by respondents.

Keywords: Business process management (BPM), small and medium enterprises (SME), Obstacles, e-retail

JEL Classification: M15, O32, O33