Digital transformation: readiness of the Lebanese manufacturing industry

Abstract

Purpose – The purpose of the present research is to analyze the barriers affecting the readiness of digital transformation implementation in the manufacturing enterprises in Lebanon. Design/methodology/approach – The research implemented a mixed approach using survey based questionnaires and interviews in order to understand the barriers that could impact the readiness of manufacturing organizations for digital transformation. The research implemented a deductive approach therefore it relied on previous studies and theories to validate the research hypotheses, and followed the positivism philosophy to validate the hypotheses. Findings – The significant barriers were categorized in three factors, organizational challenges, cultural and strategic challenges and external challenges. The most challenging barriers to the readiness for the implementation of digital transformation identified through the interviews and the questionnaire are absence of skills, and lack of external capacity building. As to the awareness about digitalization and awareness about its benefits, the main barriers were insufficient knowledge, and lack of international market exposure. Research limitations/implications -- The qualitative research was limited to the small sample size and the very limited number of previous research conducted in the industry and in the country taking into consideration the data and interviews that had been collected during a financial crisis taking place in Lebanon and during a global pandemic namely the COVID 19. Practical implications – Other manufacturing companies may learn about the barriers found through this research. They would be able to assess their readiness and consequently work on overcoming the barriers prior to the implementation through the company would be able to work on internal barriers and lobby for the external ones. Originality/value – The present research is the first is Lebanon concerning the implementation of digital transformation in the manufacturing companies.