Degree Project

Supply Chain Digital Transformation of Food SMEs in Iran

A Qualitative Research on Success Factors and Challenges Based on
Managers’ Perspectives

Author: Mahdi Fazlali Dastjerdi

Supervisor: Niki Chatzipanagiotou
Examiner: Anita Mirijamdotter /Päivi Jokela
Date: 2022-10-05
Course Code: 4IK50E, 15 credits
Subject: Information Systems
Level: Graduate
Department of Informatics
Abstract
The transformation towards a knowledge-based economy is happening on a global scale and the
rapid ICT development in recent decades has influenced the business world. One of the most
developed technology is information and communication technology (ICT) which provides
extensive capabilities and advantages to firms.
One of the emerging concepts linked to ICT is digital transformation. The term digital
transformation of the supply chain is defined as the adoption and reliance of the supply chain
operations on ICT and digital technologies to perform business activities and
meet market requirements. Thus, to survive in competitive and dynamic markets, enterprises
including SMEs should begin digital transformation of the supply chain to improve their overall
performance and efficiency.
Despite the recurring research in this field, little research is conducted based on
the managers' perspective. The aim of this research is to explore the perception of the managers
about this phenomenon and to identify the success factor and challenges in the digital
transformation of the supply chain. This qualitative research is conducted based on semi-
structured interviews with managers of food SMEs in the Iranian context. The participants are
supply chain managers who have five years of experience in the field.
The empirical data was collected through individual semi-structured interviews with the
selected participants, and from the review of organizational documents and was subject to a
thematic analysis.
From the analysis of the data five themes emerged which were reviewed in the context of
the research question and the proposed theoretical framework with the help of the Technology-
Organization-Environment (TOE) Model.
Thus, based on the research result, participants perceive digital transformation as a
conceptual tool which streamlines the supply chain activities and improves the overall
efficiency of the supply chain. In addition, findings identify the development of ICT
infrastructure and increased awareness of ICT benefits as success factors in this regard. On the
other hand, there are two issues including lack of investment and the traditional business model
which were considered hindering factors in digital transformation. Further, based on the TOE
model and from the findings, it is evident that a successful digital transformation requires proper
ICT adoption in three contexts of a firm i.e. technological, organizational, and environmental
contexts.

Keywords: Food SMEs, ICT in the Supply Chain, Supply Chain Management, Digital
Supply Chain, Digital Transformation, Digital Transformation of the Supply Chain, TOE
Model.

Page 1 of 49
Acknowledgements
Hereby I honorably, would like to express my love, passion and enthusiasm to my family, my
wife Shima and only son Kianmehr who always believed, motivated and supported me during
my studies.
Then, my appreciation goes to my supervisor Niki Chatzipanagiotou for her patience and
support who pushed me to work harder and guided me sincerely.
I also would like to thank all teachers, lecturers and course responsible of Linnaeus
University , especially Professors, Anita Mirijamdotter and Päivi Jokela for sharing their
knowledge and experience in every academic event that I attended.
In fact, conducting this master’s thesis was really a great challenge and gain for me which
was not attainable without the support of my family, supervisor and teachers.

Page 2 of 49
Table of Contents
1. Introduction……………………………………….……………….……….6
1.1 Background and Research Setting ………………………….…………..……………..6
1.2 Purpose Statement and Research Question …………………………….……………...7
1.3 Previous Research……………………………………………………….……………..8
1.4 Topic Justification…………………………………………………….………………..8
1.5 Scope and Limitations………………………………………………….………………8
1.6 Thesis Organization……………………………………………………………………9
2. Review of the Literature …….…………………………………..……….10
2.1 Search Strategy ………………………………………………………………………..10
2.2 Supply Chain Digital Transformation of Food SMEs in Iran ………………………...10
2.2.1 SMEs in Iran…………………………………………………….……….…………11
2.2.2 Food SMEs …………………………………………………………..…….……....11
2.2.3 Business Model…………………………………………………..……….………..11
2.2.4 ICT in Business Model of SMEs………………… ………………...……..………11
2.2.4.1 ICT Adoption…………………………………………………….…………….12
2.2.4.2 Leaner Investment………………………………….…….……………………12
2.2.4.3 Lack of Networking Interaction…………………….…………………………12
2.2.4.4 Unintegrated Communication……………………………………...………….12
2.2.5 Supply Chain Management………………………………………………………..13
2.2.6 Food Supply Chain (FSC)…………………………………………………………13
2.2.7 ICT in the Supply Chain………………………………………….…..……………13
2.2.8 Digital Supply Chain………………………………………………………………14
2.2.9 Digital Transformation of Supply Chain…………………………………………..16
2.3 Technology-Organization-Environment Model (TOE)………………………………..17
2.4 Theoretical Framework……………………….………………………………………..18
3. Methodology……………………………………………………………19
3.1 Philosophical Tradition ………….…………………………………………….….......19
3.2 Methodological Approach.............................................................................................20
3.3 Methods for Data Collection………………………………………………………….20
3.3.1 Documents Review as Data Collection Method…………………………………..20
3.3.2 Interview as Data Collection Method……………………………………………..20
3.3.3 Sampling Technique, Criteria and Size……………………………………………20
3.3.4. Participants and Interview Procedure……………………………………………..21
3.4 Method of Data Analysis………………………………………………………………21
3.4.1 Applying the Thematic Analysis…………………………………………………..22
3.5 Validity and Reliability…………………………………………….……………….…23
3.6 Ethical Consideration………………………………………………………………….24
4. Empirical Findings ………………………………………………...…...28
4.1 Overview of the Findings………………………………………………………………28
4.2 Theme 1: Streamlining and Improving Efficiency………………….…………………28
4.3 Theme 2: Development in Digital Infrastructure…….………………………………..28
4.4 Theme 3: Awareness of ICT Benefits ………………………………………………...28
4.4.1 ICT Adoption………………………………………………………………………28
4.4.2 ICT Implementation………………………………………………………………..28
4.4.3 Decision-Making Improvement……………………………………………………29
4.5 Theme 4: Need for more Investment…………………………………………………..29
4.5.1 Obtaining and Implementation…………………………………………………….29
4.5.2 Business Model Change Costs…………………………………………………….30

Page 3 of 49
 4.6 Theme 5: Traditional Business Model…………………………………………………30
4.6.1 Archaic and Hierarchical Management…………………………………………….30
4.6.2 Lack of Data Integration……………………………………………………………31
4.6.3 Managerial Innovation……………………………………………………………...31
4.7 Summary of Findings …………………………………………………………………..32
5. Discussion……………………..………………………………..…….33
5.1 Answer to Research Question 1………………………………………………………..33
5.2 Answer to Research Question 2………………………………………………………..35
5.2.1 Answer to Research Question 2 Success factors ………………………....……….35
5.2.2. Hindering factors………………………………………………………………….37
5.3 Discussion of the Findings with the TOE Model……………………………………...38
6. Conclusion ……………….…………………………….………….…39
6.1 Conclusions....................................................................................................................39
6.2 Contributions ………………………………………………………………………….40
6.3 Suggestions for Future Research ……………………………………………………...40
References ..............................................................................................................................42
Appendix A: Informed Consent Form for Master’s Thesis ……………………………..47
Appendix B: Questions for Semi-Structured Interviews…………………….……………….48

Page 4 of 49
List of Figure
Figure 1: Master’s Thesis Organization……………………………………………………..9
Figure 2: Illustration of the Literature Review……………………………………………..10
Figure 3: Technology-Organization-Environment Model………………………………….17
Figure 4: The Six-phase of Thematic Analysis……………………………………………..22
Figure 5: Process of the Thematic Data Analysis……………………………………….….23

List of Tables
Table 1: Traditional vs. Digital Supply Chain……………………………………..……….15
Table 2: Interview Plan of Research Participants…………………………………..………21
Table 3: Exploratory Model of Empirical Findings………………………….……..….…...32
Table 4: Themes answering the 1st section of Research Question 2/1…………..….……...35
Table 5: Themes answering the 1st section of Research Question 2/2……………..……... 37

List of Abbreviations
AI Artificial Intelligence
AVR Augmented Virtual Reality
BD Big Data
BM Business Model
BMI Business Model Innovation
CBI Central Bank of Iran
CPS Cyber-Physical System
DSC Digital Supply Chain
DT Digital Transformation
ERP Enterprise Resource Planning
FSC Food Supply Chain
ICT Information Communication Technology
IDT Information Digital Technology
IoT Internet of Things
ISIP Iran Small Industries and Industrial Parks
I4.0 Forth Industrial Revolution
SC Supply Chain
SME Small and Medium-Sized Enterprise
TOE Technology-Organization-Environment

Page 5 of 49
1. Introduction
This chapter comprises the foundation and background of the master’s thesis research followed
by the statement of the purpose and the research questions that stem from it. Then, some
previous research related to the topic is presented. Further, the importance of the topic is
justified and finally, the scope and limitations of the master's thesis are discussed.

1.1 Background and Research Setting

The transformation towards a knowledge-based economy is happening on a global scale
and many developing economies are also aspiring to reach this target. For a country
to become or remain competitive in today’s economical arena requires a shift toward
a more knowledge-based economy that is supported by technology and can lead to innovation
(Schiliro, 2017).
Iran, with a more than 80 million population, is one of the biggest developing countries in
the Middle East, which has made a significant investment in Information and Communication
Technology (hereinafter ICT) aiming at moving toward a knowledge-based economy. This
rapid advancement in ICT has changed, among other things, the way firms operate and has
drawn national attention towards Small to Medium-sized Enterprises (hereinafter SMEs) since
they act as the backbone of the Iranian economy by creating new jobs and providing an essential
platform for the national economy’s growth (E-commerce Index, 2017; Fayyaz, 2018).There is
not a common definition of SMEs in different countries; each country defines SMEs depending
on different criteria. In Iran, Small Industries and Industrial Parks Organization define SME as
a firm having a number of employees between 5 and 50. Iranian SMEs consist of 171.000
registered firm across the country operating in various industries and the value-added share of
SMEs just in the industry sector is around 36% (CBI, 2020; ISIPO, 2022). SMEs comprise
many industries, one of which is the food industry with activities spanning food production,
distribution, management, processing, packaging , transportation, and consumption. The food
industry plays a significant role in the country’s economy as it provides nutrition prerequisites
including food security, food safety, and public health (Sadiku et al., 2019).
The Business Model (BM) is defined as a system of activities through which a company
“does business” with its stakeholders. BM of SMEs, involving food SMEs, differ from its larger
counterparts which in turn distinguish the Supply Chain (hereinafter SC) of SMEs accordingly.
SC is part of a firm which comprises a complex network of facilities and activities from the
point of purchasing to the point of delivery of goods o the customers, including sourcing,
manufacturing, production, logistics, procurement, marketing, distribution, and planning.
The Food Supply Chain (hereinafter FSC) in particular, spans the entire “farm-to-fork” process
and typically includes a farmer or supplier, trader, marketer, wholesalers, retailers, caterers
and consumers (Mattevi & Jones 2016; Zhai, et al. 2021).
The movement toward a knowledge-based economy based on advancements in ICT and
digital technologies creates rapid changes in different markets and enterprises and SMEs are
not an exception. Hence, to become or remain competitive in the emerging markets, SMEs' SC
requires embracing the changes arising from ICT and entering into the era
of Digital Transformation (hereinafter DT) (MacCarthy et al., 2016).
The term DT is a multidisciplinary concept within the research field of information
systems, which is defined as the adoption and reliance of business operations, including
the business model and supply chain, and organizational aspects on ICT and digital technologies
to perform business activities and meet market requirements (Büyüközkan and Göçer,
2018). Although according to Hajli et al.(2014) DT is an evolving issue in SMEs in Iran, little
research is found about DT in the supply chain of SMEs in Iran from the manager’s perspective.
This lack of knowledge is hindering a full understanding of the success factors and
the challenges that supply chain managers are experiencing during the process of DT.

Page 6 of 49
Therefore, aiming to improve understanding of this phenomenon, this master’s thesis suggests
examining the supply chain of the food industry SMEs considering the importance of this
specific industry. Besides its importance, aiming to narrow down the scope of the study, the
focus of this master’s thesis research is on the digital transformation of the supply chain of food
SMEs in the Iranian context. At the same time, the master’s thesis examines the success factors
and challenges experienced during the process of the supply chain digital transformation of
SMEs in the food industry in Iran from the managers’ perspective. While SMEs need to have
an in-depth understanding of technological tools and digital transformation in order to optimally
leverage them, supply chain managers go a long way in helping companies track their data,
sales, productivity levels, and expenses. They can also identify areas of improvement as well
as opportunities for growth.The findings may contribute to an improved understanding
of how digital transformation can support the supply chains of food SMEs in Iran.

1.2 Previous Research

Aiming to build up a more academic context for this master’s thesis, a meaningful
literature review of previous research on the subject was conducted in accordance
with recommendations by Levy and Ellis (2006). The investigation of previous related
research shows that, although studies were carried out on the digital transformation of SMEs,
most of them examined the effect of ICT applications and digital transformation on the
whole company. Correspondingly, little empirical research concerning digital transformation
with a focus on the supply chain of SMEs in the Iranian context from the managers’ perspective
is conducted. However, studies in other disciplines and research fields have been
developed around the topic. Some of such studies that can provide a useful perception of the
subject of this master’s thesis are presented below.
Some research investigated the DT in the entire company and argues that SMEs are still
being challenged by the adoption of DT and new technology. For example, Hajli, et al.,
(2014) examined the infrastructural and cultural issues related to the adoption of ICT on the
whole company and found that barriers to DT in Iran are related to a lack of awareness of its
benefits, as well as organizational issues related to its application. Another study by
Ghobakhloo et al., (2011) highlights the increasing usage of ICT by developing countries and
in particular SMEs in Iran. The study describes the determinants of adoption and non-adoption
of different ICT applications in the entire company and examines the factors that affect the
decision to adopt DT and the extent of ICT adoption.
Research by Assadzadeh et al., (2015) has addressed the long-term effect of ICT and
digital transformation on Iranian SMEs from the perspective of overall performance
improvement of the entire company. The research indicates that ICT usage and digital
transformation are among the important variables that drive the overall performance of SMEs.
On the same path, the study by Solaymani et al., (2012) focused on the tendency of SMEs
to use ICT and implement DT in one of the industrial parks in Iran. The sample of
the study includes 35 SMEs in this industrial park. Through nonlinear models,
they analyzed the important factors impacting the overall tendency of SMEs to use ICT in
Iran and identified the major barriers to ICT adoption and DT in these SMEs.
Another study by Sanayei and Rajabion (2012) focuses on three main domains of
SMEs which includes organizational, environmental and technological aspects. The authors
investigated fifty SMEs to locate findings, reasons, causes and effects of critical success factors
contributing to ICT adoption and DT implementation among Iranian SMEs. However, the focus
of the aforementioned research is on the effects of DT on the whole firm and the results are not
drawn from the supply chain managers' perspective.

Page 7 of 49
1.3 Purpose Statement and Research Questions
This master’s thesis research focuses on the supply chain digital transformation of food SMEs
in Iran. The purpose of the master’s thesis is to examine the success factors and challenges that
managers of food SMEs in Iran experience in the process of supply chain digital transformation,
thus from the above research purpose the following research question arises:
Research Question 1: How do managers of food SMEs in Iran perceive the process of
supply chain digital transformation?
Research Question 2 is made up of 2 sub-questions:
 Sub-question 1: What are the success factors that managers of food SMEs in
Iran experience in the process of supply chain digital transformation?
 Sub-question 2: What are the challenges that managers of food SMEs in Iran experience
in the process of supply chain digital transformation?
By answering these research questions, I will be able to describe the process of supply
chain digital transformation of food SMEs in Iran and the role that digital technologies play in
that. In addition, I will be able to list the success factors (do's) and the challenges (difficulties,
do not's) in the process of supply chain digital transformation of food SMEs in Iran, from the
managers’ perspectives.

1.4 Topic Justification

The main drive for choosing this topic stems from the increasing incentives and support
for digital transformation provided by the government to SMEs in Iran. As
the National Framework of Digital Iran, 2020-2025 is approved and begun to be applied, the
plan will generate extensive changes and development in relation to digital transformation in
the country especially, for the SMEs which have received a special focus in this plan under
the subset of digital business (Digital Iran, 2020). Thus, the government’s support of SMEs is
a fundamental key to digital transformation improvements in Iran.
In addition, the technological development of the country has reached a maturity
level (Fayyaz, 2018) which makes it good timing for conducting such research. Accordingly,
the government's support of digital transformation and the current technological
development creates opportunities for food SMEs to accelerate the digital transformation of the
supply chain. Additionally, the study can be of value to the national economy as it contributes
to the performance improvement of food SMEs. Hence, this master’s thesis research will
provide knowledge on the good practices and challenges that managers of SMEs in Iran
experience regarding the supply chain digital transformation, offering them practical and
professional benefits. Furthermore, the research can support peer researchers to further examine
supply chain digital transformation in a similar context. I also have a professional motivation
to conduct this master’s thesis research because of my background in the supply chain of food
SMEs in Iran. Having talked to supply chain managers, I realized that they not
only experience difficulties in understanding the current status of their supply chain but
also face difficulties in identifying challenges and hindering factors towards
digital transformation. Finally, I have a personal motivation, which originates from the
concerns about the increasing amount of waste and perishable inventories in food industries
in Iran. This way, through my research findings I will fill in an academic knowledge gap and
at the same time, I will contribute practically in regard to the supply chain digital transformation
of food SMEs in Iran.

1.5 Scope and Limitations

The purpose of this master’s thesis research is to explore the success factors and challenges
that managers of food SMEs in Iran experience in supply chain digital transformation. Thus, to
be able to conduct more reliable research among firms that have similarities and they are

Page 8 of 49
currently in a similar phase of digital transformation, I decided to limit my research to the
Iranian context. Further, the focus of this master's thesis research will be on the supply chain,
not on the whole company. For purpose of delimitation, the research will be conducted on
SMEs with similar characteristics and needs who want to transform their supply chain from a
traditional to the digital one, and therefore, they are currently in this phase.

1.6 Master’s Thesis Organization

The illustration in Figure 1 below, created by the researcher, represents the organization of
the chapters included in this master’s thesis. The different chapters are placed in logical order from
left to right in the illustration, and the arrows illustrate how the individual chapters relate to each
other. More specifically, the background and research problem presented in the Introduction, as
well as the result of the Discussion, relate to the Conclusion. The content of the Literature Review is
used to discuss the Findings in the Discussion chapter. The Methodological choices affect what is
presented in the findings.

Figure1. Master’s Thesis Organization

As illustrated above, in chapter 1, the foundation and background of the master’s thesis
research are introduced followed by the statement of the purpose and the research questions
that stem from it. Then, some previous research studies related to the topic are presented.
Further, the importance of the topic is justified and finally, the scope and limitations of the
master's thesis are discussed.
Chapter 2 includes a presentation of the key concepts of this master’s thesis study
which provides a theoretical foundation for subsequent chapters. Next, the Technology-
Organization- Environment (hereinafter TOE) model is presented as the theoretical lens for
discussing the findings of the study.
Chapter 3 represents the methodological choices of this master’s thesis research. Firstly,
the adopted paradigm is presented and the choice is justified. Secondly, the choice of the
research approach for the study is explained. Thirdly, the methods of collecting the data are
discussed, as well as the method of analyzing the collected data.
Chapter 4 presents the empirical findings of the master’s thesis as generated after the
data analysis.
Chapter 5 constitutes a discussion of the empirical findings with the help of the theoretical
framework.
Chapter 6 presents the conclusions of the master’s thesis research, along with its
contributions. The chapter concludes with suggestions for future research.

Page 9 of 49
2. Review of the Literature
The content of this chapter constitutes the theoretical foundation of this master’s thesis. First,
the search strategy of the literature review is explained. Second, the results of the literature
review are presented. Then, in order to further clarify the concepts and ideas that form the
theoretical foundation of this master’s thesis, the key concepts related to the purpose statement
and research questions are presented. Finally, the TOE model is explained as the theoretical
lens that is applied to discuss the research findings in later chapter.

2.1 Search Strategy

In order to form a theoretical structure and to define the keywords and concepts, a literature
review on the key concepts relevant to the purpose statement and research questions of
this master’s thesis was performed following the research strategy recommendations of
Creswell and Creswell (2017). The literature review was initiated by a keywords search within
the academic databases, in particular, Emerald Insight and Scopus and focusing on the eight
top-ranked IS journals (the basket of eight). Then a backward citation search was conducted to
find all of the cited references in a single article to see what led to the article starting with.
The keywords that used were extracted from the initial review of the literature related to
the background section and are as follow: “ICT”, “Iran SMEs”, “Food SMEs”, “Supply Chain”,
“Digital Supply Chain”, “Digital Transformation”, and “TOE Model”. Several combinations of
these keywords were made using the Boolean operators “AND” and “OR”. The inclusion and
exclusion criteria were set to obtain the most cited research studies, written in the English
language, and freely available as full-text through Linnaeus University databases. The search
was further limited to more recent studies published between the years of 2012 and 2022 and
within the subject area of information systems and business administration. The main criteria
for evaluation of the findings were first by title relevance and secondly based on abstract
relevance. Lastly, the final selection was performed through a more detailed screening of the
table of content and subheadings. In the final selection, a total of 31 articles were included and
analyzed in this literature review.

2.2 Supply Chain Digital Transformation of Food SMEs in Iran

As previously mentioned, digital transformation (DT) is a multidisciplinary concept within
the research field of information systems that investigates the challenges and success
factors of the adoption and reliance of firms on ICT. Thus aiming at providing a better
understanding of the concept of digital transformation to the readers and linking it to the topic
of supply chain digital transformation of SMEs, some relevant concepts are schematically
illustrated in figure 2 below and further discussed subsequently. The flowchart begins with
ovals representing the starting points and proceeds with rectangles as the process and ends with
a parallelogram as output. The main rectangle represents the overall DT process.
More specifically, the concepts of SMEs in general, and then Food SMEs in particular,
are analyzed taking in definitions, characteristics, importance, and statistics in the Iranian
context. Then, the review of the relevant literature about Business Model (BM) of SMEs, Food
SMEs Business Model (FBM), SMEs Supply Chain (SCM), and Food Supply Chain (FSC) are
presented and lastly the role of ICT in the BM and SC is explored which results in unveiling
the features of a Digital Supply Chain (DSC). Ultimately, the concepts of DT and the process
of DT in the SC are demonstrated.
Having gained a thorough understanding of the suggested concepts, the reader is prepared
to comprehend the concept of the TOE model which describes how the process of technology
adoption and implementation is influenced by the technological, organizational, and
environmental contexts.

Page 10 of 49
Figure 2. Illustration of the Literature Review

2.2.1 SMEs in Iran

Research shows that SMEs form more than 50% of businesses and almost half of the workforce
of industrial countries. In Europe, SMEs constitute 99% of the total enterprises. In Iran,
approximately 90% of the industries consist of small and medium-sized industries while the
total amount of this section’s employment ratio is lower than 50% (Assadzadeh et al., 2015)
There are different definitions for SMEs in different countries and they are categorized
and defined depending on both qualitative and quantitative criteria like the number of
staff, capital, effects, and total sales and production capacity. However, this master’s thesis
follows the definition by the Iranian Small Industrial Parks Organization (ISIPO) which has
defined an SME as a firm having a number of employees between 5 and 50 (ISIPO, 2022).
According to the Statistical Centre of Iran (SCI, 2021), there are 171.000 registered SMEs
operating in various businesses and industries across the country and the value-added share of
SMEs just in the industry sector is around 36% (CBI, 2015).

2.2.2 Food SMEs

SMEs include many industries, one of which is the food industry representing one of the largest
sectors in the global economy. The Food industry consists of a complex network of
various businesses that provide most of the food consumed by the people of the world and
includes activities such as production, distribution, transformation, preparation, storage,
logistics, certification, processing and packaging of food. The role of food SMEs in the global
economy is increasing since experts estimate that to meet the demands of 9 billion
people, 70 to 100% more food will be needed by 2050 (Mertins et al., 2012). Food SMEs in
Iran, according to statistics, include 12000 active firms engaged in the different domains of the
food industry contributing to the production of more than 32 million tons of food. With respect
to the level of production, this industry falls within the second most productive industry in Iran
covering one-third of the productions in Iran (www.maj.ir, 2022).

2.2.3 Business Model

Before reviewing the literature relevant to the ICT role in SMEs, a brief reminder of the
Business Model (BM) of a firm supports the understanding of this section. As stated in section
1.1, in early definitions, the BM is considered as a system of interconnected and interdependent
activities within the firms that describes the way a company “doe’s business” with its
stakeholders. In other words, it explains how a firm can develop and deliver its products or
provide services. later, the concept of “Information” was added to the definition of BM and
redefined as the system of products, information flows and services, including all involved
actors, their roles, and the value created (Safar, 2018). So, BM by employing information,
became a conceptual tool helping managers in their decision-making and guiding them in the
overall business processes. Thus, every company surviving in a competitive environment has

Page 11 of 49
an efficient BM incorporating well-designed information systems management and SMEs are
not an exception (Al Mulhim, 2021).
It is noted that the study of BM by itself is not the focus of this master's thesis research
since, it encompasses many activities, processes and operations within a firm (e.g., sales,
marketing, financing, accounting, HR, etc., rather, the role and effect of ICT in BM of SMEs
are investigated here.

2.2.4 ICT in Business Model of SMEs

SMEs are dynamic and evolving firms, with their own unique features and
salient characteristics and it is widely acknowledged that SMEs differ from their large firm
counterparts in terms of the extent and how they use ICT (Miller et al., 2021). The followings
are among the factors distinguishing the usage of ICT in SMEs.

2.2.4.1 ICT Adoption

SMEs are still being challenged by the adoption of new technology. The barriers to ICT
adoption are related to a lack of awareness of the benefits of ICT adoption, as well as
organizational issues related to its application. In addition, barriers to adoption include a low
number of IT employees and ICT infrastructures in SMEs. Similarly, SMEs normally have a
tendency to use ICT as a tool to process data and usually don’t use its other functions like
sharing knowledge or strategic assets; in other words, SMEs normally just pay attention to the
short-term usage of ICT. Furthermore, barriers for SMEs to adopt and use ICT are the
unawareness of managers, low-skilled employees, implementation costs, lack of government
support and the lack of unawareness of ICT benefits (Assadzadeh et al., 2015; Hajli, et al.,
2014).

2.2.4.2 Leaner Investment

Compared to giant corporations, SMEs usually have leaner financial strengths debilitating
them to use and implement ICT to provide quality services at competitive prices. Immediate
and effective communication through the ICT is also equally crucial for SMEs to survive in
the market, but most SMEs cannot afford it with their financial constraints resulting in limited
access to market information and development constraints for them. However, controlling
restricted resources indicates that SMEs are weak on different organizational and managerial,
technological, individual, and environmental levels.

2.2.4.3 Lack of Networking Interaction

Due to a lack of ICT systems, SMEs show lineal and hierarchic interactions resulting in a lack of
networking interaction. In fact, SMEs suffer from a lack of real knowledge of
communication and value flows among different sections. Another issue of SMEs is the
tendency to the individualistic behavior in management components, processes, and
administration methods. They have a tendency to employ generalists rather than specialists and
rely on short-term planning, informal strategies and decision-making processes. More
importantly, management components continue to perform archaic practices and autocratic
leadership generating a slow response capacity to external changes.

2.2.4.4 Unintegrated Communication

Further to the above, SMEs often have several or different and separate communication
and information systems and have problems updating information. Also, they suffer from
low-level integration in the workflow and organizational structure which hinders using
management techniques such as long-time planning, financial analysis, forecasting, and
project management. Last but not least, all employee does not have access to knowledge

Page 12 of 49
management, which bring about a lack of standardization of operating procedures generating
low-quality activities and high costs (Garay-Rondero et al., 2020; Parvin et al., 2021)

2.2.5 Supply Chain Management

In an attempt to depict early visions of the supply chain, Garay-Rondero et al (2020) define it as
the flow of materials, services, and information through the main components of the physical
distribution channel such as suppliers, warehouses, factories, distribution warehouses and down
to the final customers. Thus, supply chain management (hereinafter SCM) relates to managing
the goods, services and information flow from the point of purchase to point of sales
(Nazempour et al., 2019).
Traditionally, operations and supply chain management functions have been viewed
as a cost center, associated with laborious work and heavily dependent on human resources.
So, streamlining supply chain operations have been a constant concern as output variation
of the work process is high, the tasks that are performed by operators are varied and
the employee proficiency at work is at different degrees. These variances in the knowledge,
skills and abilities of workers further add to the complexity of the supply chain, making
it a challenge to achieve an optimal output in supply chain processes (Tay and Loh, 2021).
On the other hand, the transformation toward a knowledge-based economy happening on
a global scale which generates a fast speed of changes in the different markets and in
the economic, financial, social and technological aspects, adds to the complexity and challenges
of SCs and forces them to be in constant movement and evolution. Hence, SCs do not remain
static but evolve and change in their size, shape, configuration and the manner in which they
are coordinated, controlled and managed (MacCarthy et al., 2016).

2.2.6 Food Supply Chain (FSC)

The food industry plays a significant role in the global economy as it provides
nutrition prerequisites including food security, food safety, and public health. Once harvested
or produced, the food should be stored, packed, delivered, and retailed so that it could reach the
final customers by the due date. Reports indicated that about one-third of the produced food,
approximately 1.3 billion tons, has been wasted yearly and two-thirds of the wasted food (about
1 billion tons) occurs in the supply chains like harvesting, shipping and storage. Just as an
example, perishable food like fruit and vegetables was wasted 492 million tons worldwide in
2011 due to inefficient and ineffective food supply chain management (FSCM). Therefore,
FSCM is of critical importance to saving our food. FSCM has been coined to depict activities
or operations of production, transportation, distribution, and consumption so as to maintain and
increase the safety and quality of various kinds of food efficiently and effectively. The
differences between FSCM from other supply chains are the importance reflected by factors
like food quality, safety, and freshness within a limited time, which makes it more complex and
difficult to manage (La Scalia et al., 2016; Zhong and Wang, 2017; Sadiku et al., 2019)

2.2.7 ICT in the Supply Chain

ICT refers to a wide range of technological applications; digital broadcast technologies;
telecommunication technologies as well as electronic information resources. Although ICTs are
transforming dramatically many aspects of economic and social life, working methods
and relations, and the organization of companies, however, companies and individuals are
taking up the opportunities offered by ICT at different speeds (Zafar, 2014).
Nowadays, the application and implementation of ICT in SCs is increasing due to three
major factors. First, an increasing number of accompanying technologies (e.g., Broadband
internet, smartphones, cloud computing, and online payment systems) have risen. Likewise, the
omnipresence of big data and the advent of emerging digital technologies, such as artificial

Page 13 of 49
intelligence (AI), blockchain, the Internet of Things (IoT), and robotics are projected to have
immense effects on SC processes. Second, due to these new digital technologies, competition
is changing dramatically. Not only has the competition become more global, but the intensity
has also increased. Third, consumer behavior is changing as a response to the digital
revolution. With the help of digital technologies like search and social media tools, consumers
have become more connected, informed, empowered, and active. Consumers also strongly
rely on apps and new AI-based technologies to co-create value by designing and customizing
products. Therefore, if firms cannot adapt to these changes, they become less attractive
to customers and are likely to be replaced by firms that do leverage such technologies (Verhof
et. al, 2021).
However, despite the increased usage of ICT, many documents and research results
have shown that SMEs do not suitably take advantage of ICT and digital transformation in the
supply chain, which makes them more vulnerable to economic changes, lowering the level of
their competitiveness. Despite the advancements and availability of ICT, SMEs face numerous
challenges and hindrances to adopt ICT and implementing digital transformation of the supply
chain. These challenges become even more complicated due to the fact that the executive
managers are not enough aware of the ICT resources i.e. ICT infrastructure, technology know-
how, and skilled employees. Therefore, successful ICT adoption and digital transformation rely
on both socio-economic and technological issues (Zafar, 2014).

2.2.8 Digital Supply Chain

Further to the importance of SCs in many professional activities and global development, the
nature of contemporary SCs has become multifaceted and complicated due to the speed
of change in different markets and in the economic, financial, social and technological aspects.
These rapid changes resulted in SCs being in a state of constant movement thus, SCs do
not remain static but evolve and change in their size, shape, configuration and the manner in
which they are coordinated, controlled and managed (MacCarthy et al., 2016).
Since the novel ICT technologies change the ways in which companies communicate internally
and interact externally with their surroundings and transform how firms access and
disseminate information, using ICT is escalated to address the mentioned changes,
complexities, and challenges in SCs. This increasing usage and application of ICT in supply
chains have led to the creation of the concept of a Digital Supply Chain (DSC) (Nasiri et al.,
2020; Tay and Loh 2021).
There are several definitions of DSC. Some defined it as a collective activity involved
in the supply chain process among different customers and suppliers connected through
advanced technologies to increase data availability, interactions, collaboration and
information about the market (Al Mulhim, 2021). Some consider DSC as a smart, value-
driven, and efficient process to generate new forms of revenue and business value
for organizations and to leverage new approaches with novel technological and analytical
methods (Raab and Griffin-Cryan 2011). Others described it as an intelligent, value-
driven network that leverages new approaches with technology and analytics to create new
forms of revenue and business value, through a centric platform that captures and maximizes
the utilization of real-time information emerging from a variety of sources. And
as Büyüközkan and Göçer (2018) stated, DSC is an intelligent best-fit technological
system that is based on the capability of massive data disposal and
excellent cooperation and communication for digital hardware, software, and networks to
support and synchronize interaction between organizations by making services more valuable,
accessible and affordable with consistent, agile and effective outcomes. Thus, compared to
traditional SCs, DSCs has specific characteristics some of them are described in Table 1.

Page 14 of 49
 However, regardless of different definitions of the DSC, there is consensus that the
modern supply chain requires the best digitalization practices, the latest ICT and digital
technologies and technical solutions. It is evident that with the emergence of ICT and the
growing usage of digital technologies, designing and restructuring SCs becomes more complex,
while making the delivery of products and services to consumers a challenging task (Mertins et
al., 2012). Moreover, it is worth noting that how dealing with the digitalization of the SC is far
more than maintaining the same way of traditional SCs and simply digitizing all knowledge and
information flows, rather the whole structure, as well as all of the processes, managerial
components and flows in the chain should change because of the emergent and customized
markets that need rapid responses (Ganji et al., 2018; Garay-Rondero et al., 2020).
The evaluation of change on what is happening in the supply chain shows that the
changes made by ICT have made the business serve more competitive advantages by focusing
more on the supply chain. Research in this field verifies that investment in the DSC has become
vital for firms (Lu et al., 2012; Rasool et al. 2022; Tay and Loh 2021).
Part of the research on factors impacting the improvement of DSC indicates that DSC is
driven by increased automatization, data collection, information exchange and networking
which has created opportunities for business operations and supply chain process activities.
DSC improves supply chain performance by improving flexibility, productivity and customer
orientation through interconnecting the process in the supply chain (Singh et al., 2018;
Müller et al., 2019). There is a consensus among researchers in this field that DSC is
undoubtedly an essential drive in the supply chain through which the interaction between
internal and external stakeholders of the firm improves and the company gains a greater
profit margin. Hence, a well-implemented DSC helps managers to change traditional business
techniques and establish digital supply chain procedures (Hagberg et al., 2016; Verhoef et al.,
2021).
Table 1. Traditional vs. Digital Supply Chain
Traditional supply chain characteristics Digitalized supply chain characteristics
Lineal and hierarchic interaction Multi-dimensional, non-linear interaction
Logistics activities and manufacturing Acute knowledge of customer needs
operations New emerging flows sharing within the
Lack of real knowledge of the return, risk, network structure, risk flows, virtual value and
and value flows real-time information, returns flow
Individualistic management behavior New actors including ICT, I4.0 specialists
Archaic management or autocratic leadership New managerial methods to evolve and obtain
Low or medium-level integration in the better integration and reconfiguration
workflow and organizational structure High integration via clusters, interconnection in
Lack of agility and flexibility real time
Optimal flexibility and responsiveness
Focuses on mass production with low Delivering mass, customized products and
customization services ecosystem (digital and physical)
Has several or different communication and Use computational intelligence to develop
information system machine-learning bots decision-making patterns

Has problems updating information or Open channels of communication, thus

achieving real-time communication enhancing transparency and accountability
Lack of knowledge management available to Continuous innovation to improve the
all performance of its key components
Circular economy and sustainable strategy
Lack of long-term interdependence between through the technology enablers of Industry 4.0
the network structure

Page 15 of 49
2.2.9 Digital Transformation of Supply Chain
Digital transformation (DT) is defined as the adoption and reliance of business processes,
culture and organizational aspects on ICT and digital technologies to perform business activities
and meet market requirements. In other words, digital transformation is the rethinking,
reimagining and redesigning of business in the digital age. Digital transformation is becoming
one of the main challenges facing enterprises in different industries all over the world. Today,
technological evolutions have become an integral part of many enterprises. Technologies like
cloud computing, artificial intelligence, mobility and the Internet of Things (IoT) are
increasingly used in various enterprises. These evolutions have reshaped many supply chain
processes and operations.To remain competitive, many organizations are under pressure to
digitally transform or risk being made obsolete by market forces. Work processes are expected
to transform with the adoption of disruptive technologies and workers will have to learn and
relearn knowledge as well as acquire data analytics skills to bridge gaps in organizations’
competencies. (Büyüközkan and Göçer, 2018; Tay and Loh, 2021).
In subsequent, a brief description of the different phases of digital transformation is
presented to gain a better understanding of the phenomenon. Digital transformation includes
three phases: digitalization, digitation and digital transformation. Digitization refers to a
change of analogue to digital tasks, or as the integration of IT with existing tasks, and, more
broadly, as the development or enabler of cost-effective resource configurations using IT. Based
on the above, digitization describes the action to convert analogue information into digital
information. Examples concern the use of digital forms in ordering processes, the use of digital
surveys, or the use of digital applications for internal financial declarations. Typically,
digitization mainly digitalizes internal and external documentation processes but does not
change value creation activities. Digitalization describes how IT or digital technologies can be
used to alter existing business processes. For example, the creation of new online or mobile
communication channels that allow all customers to easily connect with firms, and which
change traditional firm-customer interactions (Ramaswamy & Ozcan, 2016).
On the other hand, digital transformation is the most pervasive phase and describes a
company-wide change that leads to the development of new business models by implementing
new business logic to create and capture value. Thus, digital transformation goes beyond
digitalization the changing of simple organizational processes and tasks. It rearranges the
processes to change the business logic of a firm or its value creation process. Moreover, digital
transformation utilizes digital technologies to enable interactions across borders with suppliers,
customers and competitors. Hence, digital technologies can help to attain a
competitive advantage by transforming the organization to leverage existing core competencies
or develop new ones (Singh et.al, 2020; Gölzer & Fritzsche, 2017)
Research indicates advantages for the supply chain through the implementation of digital
transformation. According to Singh et al., (2020), digital transformation has created
opportunities and challenges for company collaboration activities through increased
automatization, data collection, information exchange and networking. For example, on
repetitive and strenuous tasks such as picking and packing processes in warehouses automation
and robotics are used to assist workers. As well, Witkowski (2017) expresses that cyber-
physical systems are vastly used to enable the users to experience synchronized decision-
making through a real-time view, discussion and analysis of critical information. Although there
exist different levers to improve business processes, digital transformation plays an important
role through the deployment of technological innovation, especially when the focus is on
supply chain activities (Rosemann and vom Brocke, 2015). In another sense, supply
chain digital transformation is the strong adoption of digital tools for the strategic
and operational management of information and material flows along the chain in all supply
chain processes thus, these innovations need to be integrated as much as possible at the

Page 16 of 49
process level to create more effective and efficient supply chains (Büyüközkan and Göçer,
2018). In line with the above insight, Müller et al., (2019) claim that digital transformation is
expected to improve SCM processes’ performance. In fact, digital transformation aims to
improve flexibility, productivity and customer orientation by interconnecting the process in the
supply chain.

2.3 Technology-Organization-Environment Model (TOE)

Previous sections have drawn a theoretical basis for the key concepts of this master’s thesis
research. Nevertheless, Creswell and Creswell (2017) recommend using established theories or
models as analytical lenses to have further perspective when discussing the findings chapters.
As a consequence, the Technology-organization-environment (TOE) model shown in figure 2
below was selected for this master's thesis.
TOE model was introduced by DePietro et al., (1990) and later the model was published
by Tornatzky and Fleischer (1990). The model describes how the process of an
organization’s technological adoption and implementation is influenced by the
technological, organizational, and environmental contexts. The TOE model is used on an
organization-level to explain that these three different elements of a firm’s context influence
adoption decisions. All three elements are posited to influence technological innovation and
present constraints and opportunities for technological innovation thus influencing the way a
firm sees the need for adopting new technology, searches for it, and adopts it (Tornatzky and
Fleischer, 1990).
As shown in figure 2, the technological context includes the internal and
external technologies relevant to the firm. Technologies may include both equipment as well
as processes. The technological context includes both, technologies that are already in use at
the firm and those that are available in the marketplace but not currently in use.
The organizational context refers to the characteristics and resources of the firm,
including the firm’s size, degree of centralization, degree of formalization, managerial
structure, human resources, amount of slack resources, and linkages among employees. The
organizational context depicts the characteristics and resources of the firm, including linking
structures between employees, intra-firm communication processes, firm size, and the number
of slack resources. Cross-functional teams and employees with formal or informal links to
other departments or value chain partners are additional examples of such mechanisms.
The environmental context includes the size and structure of the industry, the firm’s
competitors, the presence or absence of technology service providers, the macroeconomic
context, and the regulatory environment (Baker, 2012; DePietro et al., 1990).

Figure 3. Technology-Organization-Environment Model (Adapted from Baker, 2012)

Page 17 of 49
 By exploring the experience and perception of managers regarding the current
business model and supply chain of the selected SMEs compare to contemporary digital
models, certain elements of TOE model that may or may not affect the digital transformation
of the supply chain can be identified. In other words, the TOE model perspective will be used
as a theoretical lens in this master’s thesis when discussing the findings, aiming to
identify success factors and challenges that affect the perception of the managers about
the digital transformation of the supply chain.

2.4 Theoretical Framework

The key concepts of "SMEs in Iran", "Food SMEs", "ICT in SMEs", "Supply Chain
Management", "Food Supply Chain", "ICT in Supply Chain", "Digital Food Supply Chain",
and "Digital Transformation of Supply Chain" discussed in the literature review form the
theoretical basis of this master’s thesis. The literature review together with the Technology-
Organization-Environment (TOE) theory established by DePietro et al., (1990) and later edited
by Tornatzky and Fleischer (1990) elaborated above, forms the theoretical framework for this
master’s thesis research and will be used to discuss the research findings. The TOE perspective
will be used as a theoretical lens for identifying and explaining certain aspects of digital
transformation within the SMEs that may be more or less related to the digital transformation
of the SC.
SMEs are facing challenges and difficulties in adopting rapid changes occurring in
different business domains. Based on the literature, one of the suggested solutions to overcome
these challenges is the digital transformation of the organization’s business model through the
implementation of new technologies. However, there is a lack of knowledge about the
success factors and challenges regarding the supply chain digital transformation of SMEs.
Previous studies on digital transformation has shown that successful digital transformation rely
on both socio-economic and technological issues (Arendt, 2008; Zafar, 2014).

Page 18 of 49
3. Methodology
In this chapter, the methodological choices of this master’s thesis research are presented. Firstly,
the adopted paradigm is presented and the choice is justified. Secondly, the choice of the
research approach for the study is explained. Thirdly, the methods of collecting the data are
discussed, as well as the method of analyzing the collected data.

3.1 Philosophical Tradition (Paradigm)

According to Creswell and Creswell (2017) paradigm is a general philosophical orientation
about the world and the nature of research that a researcher brings to a study. Although there is
an ongoing debate about what worldviews or beliefs researchers bring to inquiry, the most
common and widely discussed paradigm in the Information Systems literature are divided into
three and adopted by Myers (1997), that is, positivism, interpretivism, and critical paradigm.
Positivists (and post positivists) researchers reflect the need to identify and assess the
causes that influence outcomes, such as those found in experiments. Positivist assumptions hold
true more for quantitative research than qualitative research. Positivists believe that there are
laws or theories that govern the world, and these need to be tested or verified and refined so
that we can understand the world. Therefore, in the accepted approach to research by positivists
a researcher begins with a theory, collects data that either supports or refutes the theory, and
then makes necessary revisions and conducts additional tests (Creswell and Creswell, 2017).
On the other hand, interpretive researchers rely as much as possible on the participants’
views of the situation being studied and lead the researcher to look for the complexity of views
rather than narrowing meanings into a few categories or ideas. Interpretivist assumes that reality
is socially constructed by the participants’ views of the situation and that it is only understood
by interpreting the underlying meaning that humans give to it. Thus, methodology within the
interpretive paradigm is based on analyzing the participant's views and is preferably performed
with more open-ended questions enabling the researcher to use a broad questioning technique
in order to have subjective experiences (Creswell and Creswell, 2017).
The third paradigm within IS research is the critical paradigm. Critical researchers
assume that social reality is historically constituted and that it is produced and reproduced by
people. However, their ability to consciously act and change people's social and economic
circumstances is constrained by various forms of social, cultural and political domination. It
focuses on the oppositions, conflicts and contradictions in contemporary society, and seeks to
be emancipatory (Myers, 1997; Creswell and Creswell, 2017).
The problem introduced in this master’s thesis is a social phenomenon pertaining complex
interaction which cannot be understood by simply gathering and analyzing objective data.
Considering that the aim of the master’s thesis research is to explore, understand and interpret
the subjective meanings of managers regarding digital transformation of the supply chain, thus
the interpretations of those meanings are important to be fully understood. Hence, after briefly
reviewing these three dominant paradigms of IS research, the adopted paradigm for this
master’s thesis research is the interpretive.

3.2 Methodological Approach

Research approaches are plans and procedures for research that span the steps from broad
assumptions to detailed methods of data collection, analysis, and interpretation. Three common
research approaches in IS field are qualitative, quantitative, and mixed methods. Qualitative
research is an approach by which individuals or groups ascribe meaning to a social or human
problem. In conducting qualitative research, a set of emerging questions and procedures are
presented in order to collect the data in the participant's setting. Researchers engaged in
qualitative subjective inquiry support inductive style and focus on individual's perception, and
tend to analyze the complexity of a situation. Quantitative research is an objective approach

Page 19 of 49
originated from natural sciences to study natural phenomena. Examples of quantitative methods
include survey methods, laboratory experiments, formal methods and numerical methods such
as mathematical modelling. It is an approach that leads the researcher to examine and measure
the relationship among variables aiming at analyzing the numbered data using statistical
procedures. The mixed-method approach combines qualitative and quantitative methods to
study a phenomenon (Myers, 1997; Creswell and Creswell, 2017).
For this master's thesis, the qualitative approach is chosen as more suitable because it
focuses on the meanings of individual managers in regards to the phenomenon of supply chain
digital transformation of SMEs in the food industry.

3.3 Methods of Data Collection

The aforementioned interpretive qualitative research entails the following methods of collecting
data: individual semi-structured interviews and documents review. The individual semi-
structured interviews will be conducted with supply chain managers of food SMEs.

3.3.1 Documents Review as Data Collection Method

Organizational documents from the specific SMEs are used as a complementary method of
collecting data. The reviewed organizational documents aimed at gaining a deeper
understanding of the current status of digital transformation of the supply chain and achieve a
better comprehension of the characteristics and needs of the SMEs, and how these affect their
digital transformation. By reviewing documents of the participating SMEs I created a
background of understanding for the specific companies, which prepared me in a way before
starting the actual data collection through interviews.

3.3.2 Interview as Data Collection Method

Interviewing has been a primary means of collecting data by gleaning information from
conversations within participants. Interview range from highly structured, through the semi-
structured, to the relatively unstructured with no pre-determined focus (Crang and Cook (2007).
Semi-structured interviews where the researcher and participant(s) set some broad parameters
to the discussion is the type that is used as more suitable in this master’s thesis research.
The qualitative semi-structured interview provided a range of advantages for the research
such as improvisation, flexibility and openness which allowed me to delve more deeply into the
research phenomenon and elicit views and opinions from the participants. In practice, I prepared
a script of questions to guide the conversation and at the same time, I focused on
the participants’ subjective experiences (For the interview guide see Appendix B). Furthermore,
as suggested by Denscombe (2017), the qualitative semi-structured interview was
especially useful for discovering new perspectives, as I developed new insights while the
conversation took different directions with different participants. Therefore, qualitative semi-
structured interviews were used as the main method of collecting data in this master’s thesis
research. The interviews were audio recorded with the consent of the participants. (For the
Informed Consent Form see Appendix A)

3.3.3 Sampling Technique, Criteria and Size

Creswell and Creswell (2017) suggests that when conducting a qualitative research study, the
sample must be selected with a pre-determined purpose in order to successfully meet the research
objective(s). For this reasons, the sample of the research participants of the master’s thesis is
purposive based on Patton (2015). Accordingly, to assure collection of rich data, the selection
criteria for the research participants of the master’s thesis were: a. supply chain managers that
have at least 3 years of work experience in order to provide relevant insight; b. supply chain
managers that work in SMEs which are currently in the process of digital transformation; c. and

Page 20 of 49
they are between the age of 25 and 65, as these are the most active years of working. The
participants’ gender is assumed to not affect the research outcome, however, gender balance
among the research participants was attempted. Therefore, 5 managers of the supply chain of
food industry SMEs in Iran were selected as the participants of the master’s thesis research.
The interviews were conducted in Persian and were audio recorded with the permission of the
research participants. The individual interviews were transcribed and translated into English in
order to be analyzed.

3.3.4. Participants and Interview Procedure

The interview procedure was conducted as follow. Contact persons in each SME were initially
contacted via email, through which a brief explanation about the research topic of the master’s
thesis was provided. Then each contact person suggested a number of managers, who were at
a latter phase contacted by me through an invitation email requesting to participate in my
research. The managers who replied positively and met my set sample criteria were offered
more explanation on the purpose of this master’s thesis through phone calls. Subsequently, the
informed consent form (see Appendix A) was shared with the participants ahead of the
interviews and ultimately, interview appointments were arranged.
For the sake of the participant's convenience, the mutually agreed time and date was
arranged and subsequently the interviews were conducted according to the date/time that was
suitable for the participants, all between the 14th and 18th of March, 2022. For confidentiality
reasons (further described in section 3.6), the participants’ and companies’ names were replaced
with letters and illustrated in Table 2 below.

Table2. Interview Plan of Research Participants

Pseudonym Date Duration Gender Age Experience
A March 14, 2022 46 min F 38 7
B March 15, 2022 37 min M 48 12
C March 16, 2022 36 min M 44 15
D March 17, 2022 40 min F 36 6
E March 18, 2022 38 min M 38 8

In order to avoid potential pitfalls in interviewing like the artificiality of the interview,
lack of interviewee's trust, lack of time, and ambiguity of language discussed by Myers and
Newman (2007) , I applied some guidelines. For instance, as advised, some questions in
connection to the participant’s role, background and experience were asked to situate the
interviewee in the discussion environment and to minimize social encounters which might have
led to the interviewee feeling uncomfortable. Three of the interviews were held through the
video call in WhatsApp and the remaining two through Zoom application. All interviews were
recorded with the consent of the participants and the recorded files were saved until the last
interview was finalized. Afterwards, all interview audio files were transcribed verbatim and
translated into English before conducting the thematic analysis, elaborated in the following
section.

3.4 Method of Data Analysis

The main purpose of data analysis as Denscombe (2017) argue is to gain
a deeper understanding of what the collected empirical material is telling us. Thus, for
analyzing the collected material for this master’s thesis the six-phase thematic analysis guided

Page 21 of 49
by Braun and Clarke (2006) was chosen. Thematic analysis is a method for analyzing
qualitative data that entails searching across a data set to identify, analyze, report and interpret
repeated patterns. It is a method for describing data, but it also involves interpretation in the
processes of selecting codes and constructing themes. The patterns of meaning that thematic
analysis allows to identify, need to be important in relation to the research question/s being
explored. Thus, for the purpose of this master’s thesis, the themes identified within the data will
be evaluated based on their relevance to the research questions.Thereafter, the findings will be
an interpretation of the collected and analyzed data provided by the managers of the SMEs.

3.4.1 Applying the Thematic Analysis

As mentioned in section 3.4 above, the six-phase thematic analysis guided by Braun and
Clarke (2006) is used for this study. These steps and their application on the collected data are
depicted in Figure 3.

Figure 4. The Six-phase of Thematic Analysis (Adapted from Braun and Clarke, 2006).

The first phase of thematic analysis is to get familiar with the data through immersing in
the collected empirical data. Practically, in this phase, I got familiar with the data through
reading and rereading the transcribed interviews. During this phase, I used note-taking when
reading the textual data to perceive the meanings and the story behind the collected data.
The second phase is to generate the initial codes. During the second phase, preliminary
codes begin to emerge from unstructured data relevant to interests, questions, and connections
between data items and other preliminary ideas to organize data at a specific level . In the second
phase, I determined the initial words or chunks of text based on the key concepts described in
the literature review and relevant to the research questions. Next, I assigned codes to that part
of the transcribed text of interviews which appeared more relevant to the research questions and
was commonly repeated in the data. More specifically, a total of 196 initial codes were
generated and placed in a table for further analysis. After generating the initial codes, the
secondary coding process was conducted in order to categorize the codes and form a group of
the most relevant codes. Accordingly, the passages with similar subjects or meanings were
grouped together, thus, I concluded with 25 codes.
The third phase involves the examination of the coded data extracts to look for potential
themes of broader significance and implies further categorization of the codes and an analysis
of how they relate to each other. So, in this phase, I identified some themes which emerged and
were relevant to the research objectives.
After identifying the emerging themes, according to the fourth phase, I reviewed the
themes and made further evaluations to ensure they meaningfully fit in regard to the posed
research questions. Then, based on the fifth phase I concluded with five themes which represent
the findings of the master’s thesis research. Phase six includes reporting and explaining

Page 22 of 49
each theme. The reporting of the themes is presented in chapter 4. The actual process of
data analysis that I followed is illustrated below in figure 4 created by the researcher.

Figure 5. Process of the Thematic Data Analysis followed by the researcher

3.5 Validity and Reliability

Validity is one of the strengths of qualitative research which signifies the accuracy of the study.
Validity conveys the description of the steps taken to check for the accuracy and credibility of
the findings. Validity needs to be based on determining the accuracy of the findings
by employing certain procedures and strategies. To this end, this master's thesis follows the
procedural perspective recommended by Creswell & Creswell (2017) including strategies and
approaches to enhance the researcher’s ability, to check the accuracy of the findings as well as
convince the readers. Accordingly, the generated codes and the emerged themes were
continuously cross-checked with the performed transcription to ensure that the final themes
represent the collected data and different perspectives. More importantly, the relevance of the
themes to the posed research questions was assured. Furthermore, a rich and thick description
approach was employed aiming at presenting more realistic and richer narratives of the theme
in question to add validity to the findings. As clarifying the researcher’s bias for increasing
the validity of the findings is of high importance, I tried to remain objective when analyzing the
findings and avoid any subjectivity between myself and the participants. This way I created an

Page 23 of 49
open and honest narrative to resonate well with readers. Finally, regarding the technical notion
of the phenomenon in question and considering my position as a master’s student in the
Informatics field having a deeper knowledge of the subject, I took into account further
objectivity before initializing each interview, when conducting the interviews and asking the
questions.
The term qualitative reliability indicates how qualitative researchers check to determine if
their approaches are consistent or stable. To increase the reliability of qualitative research some
strategies and approaches can be applied. For instance, by comparing data with the codes and
transcripts, avoiding drift in the definition and shift in the meaning of the codes, documenting
the whole procedures of the research process, cross-checking codes by writing memos about
the codes and their definitions reliability increases. In practice, these strategies have been
applied in this master's thesis research by continually comparing the data, codes and transcripts.
In addition, audio files were cross-checked with the respective transcriptions before conducting
the thematic analysis. To confirm that the conducted themes were in relation to
research questions, a double check was conducted with the transcripts before reporting the
themes (Creswell and Creswell, 2017)

3.6 Ethical Consideration

According to Creswell and Creswell (2017), it is essential for a researcher to address ethical
considerations and hold the obligation to respect the rights, needs, values, and desires of the
participants. To this end, this master’s thesis follows the recommendations of Creswell and
Creswell (2017) and the code of ethics and professional conduct of the Association for
Computing Machinery (ACM) developed by Gotterbarn, et al., (2018).
In practice, prior to conducting this research and through an informed consent form
(see appendix A), the initial interview permission with the participants (supply chain managers)
of the selected SMEs was taken, the purpose of the study, research question(s),
and conditions were disclosed and the research problem that will benefit participants was
specified.
During data collection, a trusting setting with the participants was developed to protect
their personal information and avoid research misconduct and collecting harmful information.
All participants received equal treatment and collecting eventual secret or harmful
information was highly avoided. Thus, no other personal data than the name and contact details
of the participants were maintained, and the participants’ privacy and data confidentiality
were highly respected. Furthermore, when analyzing data and reporting the findings, I tried
to avoid disclosing only positive results and avoid falsifying and plagiarism.
In the end, raw data, transcripts and audio files were kept with me and will be shared only
with Linnaeus University (if required) stating who owns the data. Thus, in this master's thesis,
the ethical issues were carefully considered prior to conduct, during all stages and when
writing every section.

Page 24 of 49
4. Empirical Findings
This chapter presents the findings that emerged after thematic analysis of the collected data.
The chapter starts by presenting, followed by a brief overview of the findings. Then, each theme
is presented and further explained with the supporting evidence of the participants’ quotations.
Finally, a summary of the findings is provided.

4.1 Overview of Findings

The findings that emerged from the thematic analysis of the collected data are as follows:
Theme 1: Streamlining and Improving Efficiency
Theme 2: Developments in Digital Infrastructure
Theme 3: Increased Awareness of ICT Benefits
Theme 4: Lack of Investment
Theme 5: The Traditional Business Model
The above-mentioned themes refer to the perception and experience of managers of
food SMEs in relation to the digital transformation of the supply chain. The themes are
presented in a narrative order to allow a better understanding of the research findings. The
meanings of these themes are further elaborated and presented with the help of quotes from
the transcriptions in separate sections below. Although this master’s thesis focuses on the
managers' perception of the digital transformation of the SC, however clarifying which and to
what extent ICT and digital technologies each SME is currently using in their SC supported the
findings.
Each of the five companies is in a different phase of digital transformation. All five
companies are active in the import of foodstuff and dealing with different business processes
including but not limited to purchasing, transporting, logistics, warehousing and distribution of
foodstuff. The ongoing supply chain process of each of the selected SMEs is managed
partly paper-based and partly by different ICT applications. Most of the formal communication
is conducted paper-based through Fax and official post services while the everyday operation
is done through email service providers specifically Outlook software and video-audio calling
software such as Zoom, Skype and WhatsApp. In addition to this, the financial and marketing
departments are in all cases provided with a segregated system operating independently.
Furthermore, all SMEs have implemented their own website and have an official account on
Instagram used for marketing purposes.

4.2 Theme 1: Streamlining and Improving Efficiency

The thematic analysis of collected data revealed that all participant believes that digital
transformation, in general, makes the processes of the supply chain streamlining and more
efficient. The concept of streamlining and efficiency is drawn from the meanings behind
the quotes of the participant by suggesting words such as easier, faster, more precise, and more
efficient. For example participant A said that “traditionally we used to assign several
employees, lots of time, cost and effort to communicate, contact and follow a project and close
a purchasing contract while all these could be done easily through a digitally integrated
communication system across the stakeholders..., now by digital application and systems, we
need only one employee to perform it of course, with less time, cost, and effort”.
Similarly, participant B commented that “our paper-based plans are prone to human
error risking to impose an extra cost, time and loss of credit for the company” ..., digital systems
instead are precise and reliable with least or no error”. Likewise, participant C stated that
“digital systems dramatically streamlined our supply chain activities, you know, in some cases,
it is the matter of only one click having access to the overall progress of a contract…, we are
now less person-dependent.., and the traditional methods don't work at all any more”.

Page 25 of 49
 In line with former insights, participant D referred to the example of Amazon where the
entire supply chain operations are streamlined by the implementation of digital systems and
much of the supply chain activities are done with no-human interference... sorting, distribution
and delivery are done by robots... operation lines are automated and response to customer
demand is quick and said “Amazon works incredibly fast, precise and efficient... without high-
tech machinery and systems no one can handle such extensive buy and sale operations with
almost no error?!..,all these benefits are gained to Amazon by ICT and digital supply chain
implementation”.
Likewise, participant F shared a similar insight and said ” our motivation to derive
digital transformation of the supply chain is to improve the overall efficiency of the company…,
since starting the digital transformation we gradually are perceiving smoother
communication, collaboration and data sharing which we believe result in efficiency in
different parts of the chain ..., digital systems enable us to access data quickly and easily which
at the same time enable us to manage the overall supply chain processes more efficiently”.
Still, participant E shared a real experience of using digital systems in the foodstuff
supply chain and said “imagine tracking a commercial shipment by your mobile phone while
interacting with different stakeholders engaged in that particular project instantaneously and
manage the overall process only by a mobile phone! ..., a massive cargo, from another
continent, carried on a giant container vessel..., it is really astonishing how easy is to access a
big amount of real-time and instantly updating data..., time and qualified data are in your hand,
which means performing a typical work with lower cost, less effort, and higher efficiency...
faster, easier, and more precise!”.
The managers' perspectives mentioned above clearly imply the role of digital
transformation in streamlining the supply chain operations in selected food SMEs by providing
easier, faster, precise, and more efficient capabilities.

4.3 Theme 2: Development in Digital Infrastructure

According to participants, the selected SMEs are in different stages of digital
transformation thus, perceiving it differently. Nevertheless, all agreed on the
fact that the development of ICT infrastructures has effects on the digital transformation of the
supply chain through the availability of ICT, the availability of IT-skilled employees and
increased competition.
For instance, participant A said “nowadays, ICT availability is not comparable to before
at all, ICT services are available almost everywhere to people and companies..., virtually
everyone uses a kind of ICT technology or device in daily life or business..., as ICT is available,
different stakeholders tend to use it and contribute to digital transformation”.
Further, participant D mentioned the government plan for the expansion of ICT and stated
that “the government investment has paid off and the availability of digital technology is clearly
noticeable both in society and businesses ..., in some areas like digital marketing, distribution
and delivery of goods we are immersing in digitalization and it is even hard to imagine using
traditional methods again”.
Likewise, all participants explained that due to the availability of ICT, and the emergence
of contemporary methods, companies were forced to let aside the insufficient, paper-based
methods of communication which they used to use before both with internal and external
stakeholders. Relevant to this insight, participant A said “we have replaced most of the
traditional and paper-based communication such as sending and keeping out physical letters
and making phone calls and instead shifted to more efficient digital methods. He further added,
"these days seems ridiculous using big, heavy old shelves full of documents and hard to access
to locate a specific letter ..., no one appreciates old, costly, time-consuming and inefficient
traditional office work while there is an easy digitalized solution for that these days”.

Page 26 of 49
Relevant to digital transformation of the supply chain, participants raised similar perceptions
and highlighted the availability of ICT in the supply chain as a success factor of digital
transformation. For example, participant B stated,” ICT and digital technologies are now
available to all stakeholders in the supply chain which is a factor pushing us to speed up the
digital transformation..., nowadays suppliers, transport companies, wholesalers, retailers,
and even end-users have access to ICT and they consequently push the firms to use ICT and
digital technologies for providing their products and services”.
Further participant D said” almost all of our counterparts in other firms use a type of ICT
and digital technology, software or application, so we should speed up the supply chain digital
transformation otherwise we risk losing the market and competitors will leave us behind”.
Furthermore, all participants believed that due to developments in ICT infrastructure
need for IT-skilled employees increased and in consequence, many people joined IT-related
training programs. Therefore, the lack of skilled employees is no further a barrier to the digital
transformation now and today IT-skilled employees are easily available. Further, participants
acknowledged that SMEs developed certain IT departments responsible for the improvement
and management of ICT and digital technology issues.
For example, participant A said “jobs have become more specialized, so while you have
a competent IT department to support you, you do not need to waste time dealing with
technical stuff like IT and digitalization which you are not good at it, ..., you give the guidelines
and strategies and leave the job to them..., I am really impressed by the competent IT-skilled
employees ..., there is now many of them, ready to work and contribute to digital
transformation”.
Participant B shared the same insight and explained “when starting the project we did
not imagine having such easy access to high-skilled IT employees bearing the most
advanced knowledge and skill in all areas relevant to digital transformation”.
Additionally, participant D said “these days, people with a variety of IT skills in
cybersecurity, cloud computing, data analytics and data science, networking and wireless,
software development, programming, etc. are ready to work and support IT projects. He further
stated that” having competent IT employees reassured and convinced us to speed up the digital
transformation aiming not to left behind of the competitors and contemporary trends”.
As well, participant E said” I remember a decade before when dealing with ICT and
digital technology was like a nightmare, you could rarely find one specialist in that domain...,
now things changed a lot ... many competent IT graduates are out there ready to contribute to
digital transformation projects... recruiting IT-skilled personnel is not further a challenge and
they are easily accessible..., just have a brief look at Ads.
Another insight that participants reflected on was the effect of the availability of ICT on
the growth of competition which all participants considered a positive drive for the digital
transformation of the supply chain. In this regard, participant C talked about the fact that the
availability of ICT and digital technologies has intensified the competition and resulted in the
complexity of the market. He further said “as ICT is now available to all, therefore all
information, demands and opportunities are open to all..., and every single change in the
market is traceable by all, so you have to have a strategy to manage these changes and
challenges ..., to survive in evolving markets and control the complex interaction digital
transformation of the supply chain is a must”. Similarly, participant A said” we cannot continue
delivering our products and services by traditional means and methods while competitors reach
our market and customers through multifaceted digital channels..., other stakeholders in our
supply chain are also in competition and strive to speed up digital transformation..., so
competition has increased both within and out of the supply chain and this is a push button for
digital transformation. Finally, participant D expressed concern about the status of digital
transformation in food SMEs by highlighting the digital domination of food chain stores. He

Page 27 of 49
further stated “it is now a must, an urgent must in fact…, we should do it now or never, we
already lost a great portion of the market..., and the only option to maintain our sales and to
regain the lost market is to leverage ICT capabilities and to speed up digital transformation”.

4.4 Theme 3: Awareness of ICT Benefits

Like the previous theme, all participants characterized the increased awareness of the benefits
of ICT as a success factor in the digital transformation of the supply chain. Each of them noted
different aspects relevant to this awareness and pointed out the results they perceive from the
increased awareness of ICT and digital technologies.

4.4.1 ICT Adoption

One effect of increased awareness that all participants agreed on was increased adoption of ICT.
For example, participant A talked about ICT adoption and said “ as much as people's
awareness of ICT and digital technologies benefits increasing, the adoption of such
technologies become unchallenging and trouble-free ..., astonishingly, even the elderly want us
to implement and offer more digital services and communication channels”.
Participant B shared the same insight and said “Nowadays, we all are aware of the
benefits and advantages of ICT and digital transformation and nobody can imagine living
without such technologies ..., the new software comes to the market day by day and people seek
updated applications aiding them in daily life and work... seems ICT is becoming an
inescapable part of contemporary life and we have perfectly adopted it with cons and pros in
every way”.
Participant D said “while ICT advantages are clear in any aspect of life, no more need to
discuss and convince people about ICT benefits..., this applies to SMEs and the supply chain as
well..., as time goes by, companies including SMEs embrace ICT systems more and try to
leverage ICT and digital technologies”.
Further participant E talked about ICT adoption in the supply chain and said “for the supply
chain activities, ICT adoption became a recurring concept..., as long as trending technology
comes to market supply chain activities need to adopt it and respond in time and correctly to
the changes raised..., we see the increased ICT adoption in people, firms, and society as a
positive factor toward supply chain digital transformation”.

4.4.2 ICT Implementation

Another insight that participants reflected on was the relation between increased ICT awareness
and implementation of ICT. For instance, participant A commented, “awareness of ICT benefits
not only hastened the ICT adoption but also streamlined the implementation..., it is easier than
before as quality software are available and implementation time is reduced”.
Further participant B said “the job is easier now, all stakeholders understand the project
so we face less technical problems, they know what and how it is going to be implemented and
of course, they assist us”.
Additionally, participant C reflected on the question about the effects of increased
awareness on ICT implementation and said “one cannot force people to change their
mentalities unless convinced by logic ..., awareness changed employee attitudes towards ICT,
their confidence to use ICT enhanced, resistance to change is decreased..., all I said show that
ICT benefits awareness changed the way employees think and work making it easier to run ICT
implementation”.

4.4.3 Decision-Making Improvement

The findings from the analyzed data revealed that participants believed the awareness of ICT
benefits has a direct relation to decision-making improvement and they regard it as a factor for

Page 28 of 49
succeeding in the digital transformation of the supply chain. In this regard, participant C briefly
explained the supply chain of SMEs which comprises complex activities starting from
purchasing a raw material through to delivery of goods to the final customer and said ”every
day we deal with new projects and interact with many stakeholders through which a huge
amount of data generated, stored and shared..., of course, it is our everyday job and we used
to do it for a long time by traditional means and methods but to be honest it is not efficient and
error-free..., the growing complexity in the supply chain and increasing load of work we face
every day could be handled only by the implementation of digital transformation, more
efficiently and effortlessly..., this way we skip the errors and make precise decisions”.
This insight was strongly supported by participant B. He greatly values decision-making
in SMEs and said” while working in such a complex and dynamic market with countless
players, it is hard to explain how supportive ICT would be for our decision-making processes.
When asked about ICT benefits, participant D pointed out the improvements in decision-
making and commented, “there is a huge amount of communication and data exchange
amongst different stakeholders all across the supply chain and each of which is of great value...,
every single piece of data has the possibility to impact the decision we make on different
issues..., sometimes it happened that a massive amount of effective and hard work by numerous
employees might be simply destroyed by a wrong decision… we do not want such experiences
anymore..., so we need to be precise and error-free therefore we confidently keep working on
the digital transformation of the supply chain”.
Further, participant E referred to ICT-based decision-making support for accounting and
payment activities and said “handling such a huge number of invoices and transactions we
have from different stakeholders in the supply chain every day is a tough job and highly prone
to error..., but fortunately digital accounting systems are out there and make the task painless
and simple”.
Finally, participant A believed that a digital accounting and payment system brings ease
of mind and streamlines daily tasks and said “ such systems give constant access to the required
data of sales, purchase, discounts, payments, payrolls etc..., I call it smart working; less sweat
on the brow, higher precision and improved efficiency and after all improved decision making”.

4.5 Theme 4: Need for more Investment

Analysis of the collected data revealed that SMEs require more investment in ICT. Some
participants believed that lack of investment in this domain remain a challenging factor,
especially for those SMEs with limited financial capacity. According to participants, SMEs
need investment in three domain linked to ICT i.e. obtaining and implementation, business
model change, and recruitment of IT-skilled employee.

4.5.1 Obtaining and Implementation

Participants believed that SMEs are in financial constraints to invest in obtaining and
implementation of ICT. For example, participant B said that “benefits of DT are evident to us,
it definitely streamline and optimize the supply chain process, at the same time obtaining and
implementing ICT and digital technologies depends on a great financial support ..., particularly
integration phase requires time, software, hardware and equipment and all of which needs
more money and investment”.
In particular, participant C talked about a real investment challenge they have for
industrialization of packaging and traceability system and explained that “compare to ICT
enabled systems the current traditional packaging system is laborious, costly and low efficient
so, ICT worth investing but we cannot yet afford it ..., also ICT-based traceability systems are
a great advantage in the supply chain which we have constraint to obtain”.

Page 29 of 49
 Also, participant A expressed need for investment on ICT and said” I know some
companies that have opened new export markets due to sufficient investment in ICT and digital
transformation ..., they gained great return on investment (ROI) on digital transformation ...,
undoubtedly investment in DT have many advantages for the company ..., we should look for
financial channels or try to attract new investors”.
In line with aforementioned insights, participant D commented on the importance of ICT in
the export section and said “export markets always seek for better quality and service which is
not attainable by the traditional methods and approaches ..., we can more easily and quickly
access to new export markets if obtain and implement ICT technologies sooner”.

4.5.2 Business Model Change Costs

Relevant to need for investment, participants talked about the cost arising from the changes in
the business model made by ICT implementation. Each participant noted a different degree of
change in business model and considered it a cost-generating factor. For example, participant
A said ” digital transformation makes many changes to different departments …, in some cases,
we should change our established methods and approaches making them all integrated and
orchestrated..., all these change need time to establish and money to implement”.
As well, participant B noted the changes in business model of the firm as well as
highlight the cost arising from such changes and said” ICT is transformative per se so, we
should be prepared for more changes in different departments..., changes generate cost and in
some cases take long time to establish and SMEs should be ready to pay the costs”.
Participant D talked about costs arising from changes in the business model and said” it
not only changes the way we work, but it also makes pervasive changes in the interaction of
internal and external stakeholders of the company thus generating additional charges we have
to pay ”. Similarly, participant E said “digital transformation makes changes in different
departments and establishing these changes will impose extra costs, while we already have
spent a big amount of money for obtaining and implementing the DT requirements”.
In particular, participant C elaborated on the changes in the business model made by the
internal Enterprise Resource Planning system (ERP) and said “using such a system changes
the working process and communication fundamentally so that all departments should adapt to
the changes ..., to apply the changes we have to spend more money on new software, digital
equipment, devices and hardware”.

4.6 Theme 5: Traditional Business Model

Findings of the interview with participants showed that the traditional business model is
perceived as a hindering factor in digital transformation from the selected SMEs manager's
perspective. Participants feel that the traditional business model of SMEs in four ways affects
the digital transformation of the supply chain including hierarchical Interaction, lack of data
circulation and integration, lack of agility and flexibility, and lack of ICT adoption.

4.6.1 Archaic and Hierarchical Management

From the findings, it turned out that participants feel lineal and hierarchic interactions as
hindering factors for digital transformation. For example, participant B said ” while SMEs are
competing in complex, dynamic and fast-pacing markets with a complicated network of
stakeholders, supply chain staffs sometimes get stuck in a simple step to get a simple reply or
confirmation from a high-ranked manager..., why? …, because to them, hierarchy matters a lot
more than efficiency ..., because access to some sort of data is restricted..., we should
redefine the restrictions and replace linear communication with networking interaction by the
implementation of digital transformation”.

Page 30 of 49
 Similarly, participant D said,” when you have linear communication while working in a
complex and fast-changing environment, you cannot react proactively ...you miss the time and
opportunities..., all these means risk and cost and will have negative effects on the whole
performance of the firm in a short period of time..., so, such a traditional structure does not fit
contemporary methods of interaction and hinders digital transformation”.
Further, participant A pointed out an issue linked to the linear hierarchy and said “it is
an organizational issue, managers traditionally tend to keep data within their respective
department, refuse to share it and use it as a sort of authority over other departments ..., such
attitude slows manageable interaction and is fundamentally against the nature of digital
transformation”.
Participant E went even further and said “ I think it is not an organizational issue but
interconnected to work tradition and culture... sort of Individualistic management behavior ...,
employees still lack real knowledge of the data circulation and value flows..., some managers
insist on archaic management or autocratic leadership”.

4.6.2 Lack of Data Integration

Another issue linked to the traditional business model of SMEs that participants noted was the
lack of data integration and perceived as a hindering factor towards the digital transformation
of the supply chain. In this regard, participant B mentioned the low or medium-level integration
of data and workflow of SMEs and said “traditional methods lack proper integration ..., in
SMEs each department usually works independently and do not contribute to data sharing
sufficiently, …, throughout the supply chain we see several different independent systems..., for
example, HR, accounting, logistics, warehousing, etc. systems operate to some extent
independently and the lack of integration of such systems makes it a big challenge to distribute
data and negatively impacting the overall supply chain”.
Similarly, when talking about data integration participant C commented that “data is a
valuable asset of the firm and does not belong to a particular stakeholder or department ..., to
survive and keep operating smoothly, a firm needs to leverage its key resources including a
network of integrated data..., we see that big amount of data is being interacted but employees
in need of that cant benefit due to lack of integration”.
Exactly what participants B and C experienced regarding data circulation was perceived
by participant A as a problematic situation. Participant A elaborated on a recurring problem
arising from lack of data integration and said “you might fall into big trouble if it happens in
the accounting unit as occurs sometimes to us when sales data is kept in with employees… that
does not make sense when someone keeps important documents or data and put the colleagues
in trouble!”
Finally, participant E said, “if we fail to integrate different systems engaged in the supply chain,
we are subject to lose many opportunities..., while new markets emerging, new customers from
different channels are in demand of different products, and different stakeholders submit
various inquiries, we are in an urgent need of data integration to respond quickly and positively
to all these interactions".

4.6.3 Managerial Innovation

Moreover, participants reported the lack of managerial innovation as a common feature of the
traditional business model of SMEs which is a challenging factor in the digital transformation
of the supply chain. When asked about the role of innovative managers, all participants
answered that SMEs are in need of innovative managers to reconfigure the traditional supply
chain in order to survive in contemporary markets. On this matter, participant B highlighted the
notion of innovation and said “SMEs can survive only if managers sense the changes in the
contemporary world and act innovatively and proactively in constantly changing markets..., we

Page 31 of 49
cannot respond correctly to the market demands if we fail to welcome new market modes and
customer needs ..., if we mean it then innovation is a must”.
on top of that, participant E referred to the role of innovative managerial methods in
digital transformation and said “when all stakeholders in the supply chain are aware of ICT
benefits and ready to seize the generated opportunities, the role of managers is crucial to
implement innovative systems and approaches to leverage the said benefits..., in other words,
the traditional methods are not capable to manage and regulate such settings”.

4.7 Summary of Findings

This master’s thesis explored the success factors and challenges in the supply chain
digital transformation of SMEs in the Iranian context from the managers' perspective. To this
end, through semi-structured interviews and a review of organizational documents, empirical
data were analyzed using the thematic analysis method. The results of the thematic analysis
were the emergence of five themes which were further developed by the presentation of
participants' quotes and data extracted from the organizational documents. Nevertheless, in the
coming chapter 5, the meaning behind these themes relative to the managers' perspective on
the digital transformation of the supply chain would be discussed within the theoretical
framework which already is presented in section 2.7. The empirical findings presented in the
five aforementioned themes of this chapter illustrate that the participants believed digital
transformation, in general, makes the processes of the supply chain streamlining and more
efficient. Based on the participants’ comments on the process of digital transformation of the
supply chain, a pattern of success factors and hindering challenges emerged, visualized and
discussed with the help of Figure 5 below, which is created by the researcher.

Table 3: Exploratory Model of Empirical Findings

Theme 1 Theme 2 Theme 3 Theme 4 Theme 5

Stramlinging Digital ICT Benefits Lack of Traditional

and Efficiency Infrastructure Awareness Investment BM
Improvement Improvement
Easy & Fast ICT ICT Adoption Obtaining and Archaic and
Availability Implementation Hierarchical
Management
Findings

Preciseness IT-Skilled ICT Business Model Lack of Data

Employee Implementation Change Integration

Efficiency Competition Decision-Making Managerial

Growth Innovation

Page 32 of 49
5. Discussion
In this chapter, the empirical findings resulting from the thematic analysis of the data will be
discussed in view of research questions and the concepts presented in the literature review and
then the answer to the posed research questions will be presented in two separate section.
As mentioned before the aim of this research was to explore the perception of
managers’ and success factors and hindering challenges in the supply chain digital
transformation of food SMEs in the Iranian context. The findings presented in the previous
chapter 4 answered the posed research questions as below.

5.1 Answer to Research Question 1

The first Research Question read: How do managers of food SMEs in Iran perceive
the process of supply chain digital transformation? Theme 1 of the empirical findings answers
the RQ1: Participants perceived that digital transformation streamlines the activities and
improves the efficiency of the supply chain.
In order to understand the foundation of the participants’ experience, it is necessary to
give a brief description of the complex nature of the digital transformation of the supply chain.
The concept of the supply chain comprises a complex set of many stakeholders, activities, and
interactions among them. Further to this, digital technologies add to this complexity by taking
different capabilities and multiple communication channels. on the other hand, each of the
SMEs selected for conducting this master's thesis was in a different stage of digital
transformation thus experiencing it differently and the extent of ICT adoption in different
aspects of each of the SMEs was different. On top of that, digital transformation depends on
the readiness of multiple contexts of a firm such as digital platform, human resources, and
organizational structure. Taking the aforementioned complexity into account, this master's
thesis tried to discuss the general perception of the participants by providing the key concepts
of the digital transformation of the supply chain.
In spite of such complexity, findings drawn from the analyzed data showed that
participants have clear perceptions both of the current position of the supply chain and the
benefits of digital transformation of the supply chain. In general, the participants perceived
digital transformation as a conceptual tool for streamlining and improving the efficiency of the
operations of the supply chain, which make the activities across the overall supply chain easier,
faster, more precise, and efficient
According to scholars operations and supply chain management functions have been
viewed as aspects associated with laborious work and heavily dependent on human resources.
So, streamlining supply chain operations have been a constant concern (Tay and Loh, 2021).
This perception corresponded with the experiences among the participants as when
talking about the current position of the supply chain, participants perceived it as low-efficient,
and dependent on the employees. In particular, they mentioned that traditionally they used to
assign several employees, lots of time, cost and effort to communicate, contact and follow a
project and close a contract while all these could be done easily through a digitally integrated
communication system.
Also, participants expressed a tendency for finding a way or creating a method to gain
maximum output of the supply chain operations. This tendency was repeatedly reported by the
participants by sharing an understanding of the role of digital transformation in the
improvement of efficiency in business processes and in supply chain activities in particular. In
fact, participants believed that improvement in the supply chain needs to employ digital
technologies and implement digital transformation. Such understanding fully complies with
Rosemann and vom Brocke, (2015) as they argued, although there exist different levers to
improve business processes, digital transformation plays an important role through the
deployment of technological innovation, especially when the focus is on supply chain activities.

Page 33 of 49
 In line with the above insight, findings revealed that participants believed that using
integrated digital systems dramatically streamlines supply chain activities and improves the
efficiency of the supply chain. For example, in a specific quote, participant C said it is a matter
of only one click having access to the overall progress of a contract. By stating such a perception
they established the idea of Büyüközkan and Göçer, (2018) who claim that digital innovations
need to be integrated as much as possible at the process level to create more effective and
efficient supply chains.
In addition, findings showed that the participants have sensed the changes happening in
the supply chain which complied with McCarthy et al., (2016) who suggested that due to fast
speed of changes in the different markets SCs do not remain static but evolve and change in
their size, shape, configuration and the manner in which they are coordinated, controlled and
managed. As well, participants express the fact that they are aware of the increasing ICT usage
in the supply chain and need for reshaping their supply chains. This perception also
corresponded with the conceptions discussed in section 2.2.5, where scholars agreed on the fact
that technologies like cloud computing, artificial intelligence, mobility and the Internet of
Things (IoT) are reshaping many supply chains (Büyüközkan and Göçer, 2018; Tay and Loh,
2021).
When talking about benefits of the digital transformation, participants mostly highlighted
two concepts; streamlining and more efficiency. In this regard, they shared understandings such
as lesser time, lower cost, less effort, least or no error, quick response, more efficiency, and
precise decision-making. These insights to somewhat corresponded to Singh et al., (2018) who
argued that digital transformation has created opportunities for company collaboration activities
through increased automation, data collection, information exchange and networking.
Similarly, research by Muller et al., (2019) claimed digital transformation is expected to
improve flexibility, productivity and customer orientation by interconnecting the process in the
supply chain. This insight also corresponds to the concept of streamlining of the supply chain
activities that participants talked about.
Furthermore, findings indicated that as a streamlining aspect, participants perceived the
crucial role of digital transformation in the integration of data among different stakeholders
throughout the supply chain and consider it as a support in establishing faster and easier
communication within and outside of the company. This perception matched the argument by
(Al Mulhim, 2021) who defined DSC as collective activity involved in the supply chain process
among different customers and suppliers to increase interactions, collaboration and
information about the market.
From the findings, it turned out that participants were aware of the benefits of digital
transformation such as improved efficiency and decision-making. By talking about real
examples like Amazon, they expressed the benefits of a digital supply chain and the
opportunities a firm can leverage. It was not a surprise that Singh et al., (2018), gave expression
to the same understanding and described that digital transformation has created
opportunities for company collaboration activities through increased automatization, data
collection, information exchange and networking. Similarly, participants implied real examples
of streamlining the supply chain at transportation points, logistics facilities and warehouses
which corresponded to the examples given by Singh et al., (2018) who pointed out to
advantages made by the digital supply chain in repetitive and strenuous tasks such as picking
and packing processes in warehouses and automation and robotics used to assist workers.
Equally significant, findings revealed that participants were enough aware of the
advantage of digital transformation in decision-making improvement. It was evident in many
quotes that participants were not confident in paper-based plans which are prone to human error
risking imposing an extra cost, time and loss of credit for the company, instead, they consider
digital systems more precise and reliable with the least or no error. In theory, this perception

Page 34 of 49
was in tune with Witkowski (2017) and proved that ICT-based and cyber-physical
systems enable the users to experience synchronized decision-making through a real-time view,
discussion and analysis of critical information.
Ultimately, in theme 4.2 section 4.2.1 participants believed that the motivation to
derive digital transformation of the supply chain is to improve the overall efficiency of the
company. In addition, they admitted that since starting the digital transformation, they
perceived a degree of communication, collaboration and data sharing which they believed
results in efficiency in the supply chain. The perception mentioned above is in line with the
above insight by Muller et al., (2019) that claims digital transformation is expected to improve
SCM processes’ performance. In fact, digital transformation aims to improve flexibility,
productivity and customer orientation by interconnecting the process in the supply chain

5.2 Answer to Research Question 2

As research question two is two-purposed, I split it into two sub-sections, 5.2.1. Success
Factors and 5.2.2. Hindering Factors in the digital transformation of the supply chain.

5.2.1. Success factors

The first part of the second research question read: What are the success factors that managers
of food SMEs in Iran experience in the process of supply chain digital transformation?
Theme 2 and 3 of the empirical findings answers RQ2 as depicted in table … below.

Table 4: Themes answering the 1st section of Research Question 2

Section 1 of Research Question 2 Themes Answering RQ 2
Theme 2:
What are the success factors that managers of Developments in Digital Infrastructure
food SMEs in Iran experience in the process
of supply chain digital transformation? Themes 3:
Increased Awareness of ICT Benefits

As presented in the literature review, digital transformation is defined as the adoption and
reliance of business processes, culture and organizational aspects on ICT and digital
technologies to perform business activities and meet market requirements (Büyüközkan and
Göçer, 2018). From this definition, it turns out that the more a firm rely on ICT and digital
technologies, the faster the digital transformation will happen. The findings of this master's
thesis show that the SME managers identified the growing reliance on ICT provided by the
development of ICT infrastructure in Iran and consider it as a success factor in the digital
transformation of the supply chain. This perception is in line with Ghobakhloo et al., (2011)
who highlighted the increasing usage of ICT SMEs in Iran. As well, findings show that the
perception of the participants complies with Verhof et al, (2021) who argued that the reliance
and implementation of ICT in SCs are increasing due to three major factors i.e.
accompanying technologies, the omnipresence of big data and the emerging digital
technologies, and the changing consumer behavior.
One key advantage of the availability of ICT infrastructure which participants had
consensus on and considered as a success factor in digital transformation was the availability
of IT-skilled employees. In this regard, findings showed that in terms of the availability of IT-
skilled employees, the perception of participants is contrary to Assadzadeh et al., 2015; Hajli,
et al., 2014). While, findings showed that participants’ believed that due to developments in
ICT infrastructure need for IT-skilled employees increased and in consequence, many people
joined IT-related training programs and today IT-skilled employees are easily available,
Assadzadeh et al., (2015) and Hajli, et al., (2014) claimed that low-skilled employees are

Page 35 of 49
among barriers for SMEs to adopt and use ICT. Furthermore, the availability of IT-skilled
employees was highlighted more where participants acknowledged that SMEs developed
certain IT departments responsible for the improvement and management of ICT and digital
technology issues. Thus, findings revealed that the lack of skilled employees is no further a
barrier to digital transformation now and today IT-skilled employees are easily available in the
Iranian context.
Another advantage of the availability of ICT infrastructure in the supply chain according
to the participants was that all information, demands and opportunities are open to all. They
expressed the fact that every single change in the market is traceable by all stakeholders and
intensifies the competition which in turn creates an urgent need for taking a proper strategy to
manage these changes and challenges. Findings showed that participants perceived the growing
competition arising from the increasing usage of ICT and changing the behavior of the
customers and considered it a positive drive for the digital transformation of the supply chain.
In fact, they believed that growing competition pushed them to find a way to manage the
changes and challenges in the market, so they were convinced that to survive in evolving
markets and control the complex interaction digital transformation of the supply chain is a must.
This finding reconfirms the argument made by (Verhof et. al, 2021). While, (Verhof et. al,
2021) highlights the increasing ICT applications in the supply chain due to three major factors
of accompanying technologies, change in consumer behavior, and growing competition,
participants admitted the fact and perceived that competition has increased both within and out
of the supply chain and this is a push button for us to speed up the digital transformation of the
supply chain.
One positive effect of increased awareness of ICT benefits in digital transformation that
all participants agreed on was increased adoption of ICT. Taken the definition of digital
transformation described in section 2.2.5 by Büyüközkan and Göçer (2018), the adoption and
implementation of ICT is among the key factors in digital transformation. While, Assadzadeh
et al., (2015) and Hajli, et al., (2014) argued that SMEs are still being challenged by the
adoption of new technology and referred to issues like lack of awareness of the benefits of ICT
adoption as barriers to ICT adoption. Findings of this master's thesis show that participants no
further consider the lack of adoption of ICT as a challenge in digital transformation. They
reported a high degree of awareness of ICT benefits and clearly stated a tendency to pay
attention to the long-term usage of ICT and consider it as a tool for sharing knowledge, decision-
making or strategic assets. Moreover, participants asserted that while ICT advantages are clear
in any aspect of life, no more need to discuss and convince people about ICT benefits, this
applies to SMEs and the supply chain as well , now all companies including SMEs embraced
the implementation of ICT systems and trying to leverage the digital transformation of the
supply chain. In addition to the above, the perception of participants about ICT adoption is
contrary to the argument of (Zafar, 2014). While participants acknowledged the increased ICT
adoption in people, firms, and society and consider it as a positive factor toward supply chain
digital transformation, and despite the fact that they believed supply chain activities adopt new
technologies quickly and respond in time and correctly to the changes raised, Zafar (2014)
claimed that executive managers are not enough aware of the ICT benefits and resources i.e.
ICT infrastructure, technology know-how, and skilled employees, therefore, SMEs fail to
successful ICT adoption and digital transformation.
Although research indicates different advantages for the supply chain through the
implementation of digital transformation, one strategic benefit of that is improvement in
decision-making which all participants recognized it. The findings from the analyzed data
revealed that participants believed the awareness of ICT benefits has a direct relation to
decision-making improvement and they regard it as a factor for succeeding in the digital
transformation of the supply chain. It turned out that participants highly value decision-making

Page 36 of 49
in SMEs and acknowledged that while working in such a complex and dynamic
market with countless players, ICT-based decision-making is of crucial importance for
SMEs. This amount of importance is highly appreciated by scholars and confirms the fact that
ICT systems are vastly used to enable users to experience synchronized decision-making
through a real-time view, discussion and analysis of critical information
(Witkowski, 2017; Singh et al., 2018).

5.2.2. Hindering Factors

The second t part of the second research question read: What are the challenges that managers
of food SMEs in Iran experience in the process of supply chain digital transformation?
Theme 4 and 5 of the empirical findings answers the research question 2.

Table 5: Themes answering the 2nd section of Research Question 2

Section 2 of Research Question 2 Themes Answering RQ 2
What are the challenges that managers of Theme 4: Lack of Investment
food SMEs in Iran experience in the process
of supply chain digital transformation? Themes 5 : The Traditional Business Model

This master’s thesis research findings lifted the importance of investment in ICT
and showed that in addition to costs arising from the changes in the business model, SMEs are
in financial constraints to invest in obtaining and implementing ICT. Findings revealed that
although participants understand the benefits of digital transformation, at the same time they are
facing constraints in obtaining and implementing ICT, particularly in the integration
phase which requires time, software, hardware and equipment. On the other hand, participants
believed that digital transformation is transformative per se and makes many changes to
different departments of the firms, pushing them to change or modify the established methods
and approaches. They perceived these changes as time-consuming and cost-generating issues
hindering the digital transformation of the supply chain. These financial constraints which were
perceived by the participants as a hindering factor in the digital transformation of the supply
chain confirm the insight by Garay-Rondero et al., (2020) and Parvin et al., (2021). These
scholars debated that leaner finances debilitate the SMEs to use and implement ICT to provide
quality services at competitive prices. Further, the financial constraints hinder
immediate and effective communication through the ICT-based channels thus, SMEs should
invest in these domains to gain access to market information and stay competitive.
One of the main issues that participants perceived as the hindering factor in digital
transformation was the traditional business model of SMEs. In fact, findings indicated that the
traditional business model of SMEs is the source of 3 factors which hinder the digital
transformation of the supply chain. These factors are, archaic and hierarchical management,
lack of data integration, and lack of managerial innovation.
When exploring the findings it turned out that linear and hierarchical management is an
organizational issue and managers traditionally tend to keep data within their respective
departments, refuse to share it and use it as a sort of authority over other departments. They
further believed that such an archaic attitude slows manageable interaction and is fundamentally
against the nature of digital transformation. In addition, the findings highlighted the
participants' perceptions about low or medium-level integration of data and workflow in SMEs
and revealed that traditional methods lack proper system integration and sufficient data sharing
among different departments like HR, accounting, logistics, warehousing, etc.
On top of the above-mentioned hindering factors, the role of innovative managerial
methods was highly important to the participants. Findings give rise to the argument that
participants believed in sensing the changes in the contemporary world and acting innovatively

Page 37 of 49
and proactively in constantly changing markets aiming to respond correctly to the market
demands. This insights are similarly debated by Assadzadeh et al., (2015) and Hajli, et al.,
(2014) and confirm that SMEs normally have a tendency to use ICT as a tool to process data
and usually don’t use its other functions like sharing knowledge or strategic assets; in other
words, SMEs normally just pay attention to the short-term usage of ICT.
Although the interviewees were selected from experienced managers having a
comprehensive knowledge of the industry and held a close and in-depth connection with the
market trends, however, it is worth noting that considering the large population of food SMEs
in Iran the small sample of 5 interviews would not represent a general understanding and
perception of the managers about the phenomenon. Hence, similar research by conducting
interviews with a larger group of companies and managers will definitely add to the value and
generalizability of the results.

5.3 Discussion of the Findings with the TOE Model

The empirical findings of the research justify the theoretical framework, which includes the key
concepts as well as the Technology-Organization-Environment Model (TOE) model
of DePietro et al., (1990). The Model (TOE) describes how the process of an organization’s
technological adoption and implementation is influenced by the technological, organizational,
and environmental contexts. The TOE model is used to explain that these three different
elements of a firm's context influence adoption decisions thus influencing the way a firm sees
the need for adopting new technology, searches for it, and adopts it (Tornatzky and
Fleischer,1990). According to the TOE model, a successful digital transformation of the supply
chain needs technology adoption at all there levels of a firm. Likewise and based on the
findings, managers of the selected food SMEs believed that digital transformation of the supply
chain should be adopted and implemented at all three levels of a firm. More specifically, in
the technological context, the participants highlighted the need for the adoption
and implementation of ICT by obtaining digital technologies. Although some SMEs were
already using specific digital technologies, they perceived that there exists different digital
technologies they did not use yet and should try to obtain and implement them. Further, the
integration of such technologies was of high importance and the participants acknowledged that
to gain better decision-making they need to integrate the existing digital systems within the
firm.
In the organizational context, the participants elaborated on the transformation of
managerial structure, human resources, linkages among employees and intra-firm
communication processes. In particular, all participants believed that managerial barriers in
digital transformation should be removed, a specialized IT department established and skilled
employees hired. As well, they expressed an urgent need for creating a link between all
stakeholders within the company and facilitating smooth interactions. On top of that,
participants did not neglect the need for communication and interaction with other stakeholders
outside of the company and shared a strong will to share data with them.
In the environmental context, the participants pointed out the role of competitors in the
evolving markets and emphasized that SMEs operate in a dynamic and complex environment
and to survive in such markets they need to quickly and efficiently adopt the new technologies.
In addition, managers of the selected SMEs highlighted the role of ICT providers in supporting
the process of digital transformation and in particular they mentioned the implementation of the
Digital Iran 2020-2025 plan and the regulatory role of the government as an opportunity to
benefit the digital transformation in the supply chain. However, participants had a consensus
that the macroeconomic context of Iran was heavily impacted by the imposed sanctions which
directly affects the digital transformation of SMEs negatively.

Page 38 of 49
6. Conclusion
This chapter begins with a brief outline of this master’s thesis followed by presenting the
research's contributions and concludes with suggestions for future research.

6.1 Conclusions
The aim of this master’s thesis research was to explore the process as well as the success factors
and hindering challenges in the digital transformation of the supply chain of food SMEs in the
Iranian context from the managers' prospect. To this end, an interpretive and qualitative study
was conducted by collecting empirical data through individual semi-structured interviews with
5 purposely selected participants along with an organizational documents review. The collected
data was subject to thematic analysis aiming to extract the most important themes. The research
findings were discussed with the help of the theoretical framework, which included key
concepts such as SMEs, food SMEs, business model, ICT in SMEs, supply chain, digital supply
chain, and digital transformation of the supply chain. These concepts along with the
Technology-Organization-Environment (TOE) model allowed me to understand and interpret
the meanings behind the themes and discuss the research findings aiming at answering the
research questions of the master’s thesis:
Research Question 1: How do managers of food SMEs in Iran perceive the process
of supply chain digital transformation?
Research Question 2: What are the success factors and challenges that managers of
food SMEs in Iran experience in the process of supply chain digital transformation?
The research findings showed that in general managers of the selected SMEs perceive
digital transformation as a success factor and conceptual tool for streamlining and improving
the efficiency of the supply chain. In fact, participants believed that digital transformation
provides the firm with faster, easier, precise and more efficient activities in the supply chain.
Another success factor that was revealed through the findings was the role of development
in ICT infrastructures in digital transformation. Participants consider it as a success factor which
facilitates the digital transformation with increasing ICT availability, increasing availability of
IT-skilled employees and increased competition.
Additionally, based on the findings it turned out that increased awareness of ICT benefits
is regarded as another success factor in digital transformation. Participants pointed out different
aspects of this factor and specially highlighted the increased ICT adoption, ICT implementation,
and decision-making as concepts linked to awareness of ICT benefits.
Furthermore, findings showed that SMEs suffer from a lack of investment and consider it a
hindering factor in digital transformation. The need for investment was especially underlined
when talking about obtaining and implementing the ICT elements as well as the need for money
to compensate for the costs arising from business model changes.
On top of all, participants expressed a deep understanding of the impacts of the traditional
business model on the digital transformation of the supply chain. They mention some factors
of the traditional business model including hierarchical management, lack of data integration,
and lack of managerial innovation hindering digital transformation of the supply chain in
selected SMEs.
The research findings also showed that successful digital transformation required ICT
adoption and implementation in all contexts of the firm. These contexts are defined by the TOE
model and indicate that digital transformation is not a just technical change, rather the social,
economic, and environmental aspects of that should be considered equally.
In the technical context, findings showed that participants are aware of the fact that ICT
is an evolving concept which continuously provides firms with new capabilities and benefits.
This establishes the insight that SMEs need to be up to date with new technologies in the supply
chain and consecutively employees should stay aware of the trends in the industry as well. More

Page 39 of 49
importantly, when the required technology is obtained, managers should urge the stakeholders
to adopt it and try to implement it correctly and integrate it with other existing systems
efficiently.
The second context engaged in the digital transformation of the supply chain is the
organizational level. It was evident by the participants that the traditional business model lacks
the proper organizational structure for leveraging the benefits of digital transformation.
Findings implied that participants acknowledge the need for change in the traditional business
model and identified the aspects hindering the digital transformation. Based on findings,
participants shared similar perceptions regarding the need for digital transformation in the
organizational context and believed that changes were required in the business model along
with obtaining new digital technologies. These insights strongly support the idea that digital
transformation is not just obtaining and using digital technologies, rather the organizational
structure should be prepared and adapted to the selected digital strategy.
Ultimately, the third angle of a successful digital transformation that the managers of
SMEs should take into account is the environmental context the firm is operating within it.
Findings showed that participants were not concerned about technology service providers and
regulatory requirements as they repeatedly pointed out the government plan for supporting
SMEs. Instead, the participants frequently showed concerns about competitors and
macroeconomics. In fact, they indicated a degree of uncertainty in the political situation and
concerns about growing competition which was considered as hindering factor in digital
transformation. This last insight revealed that participants are confident to expedite and greatly
leverage digital transformation if they see a positive prospect in the political situation and global
competition.

6.2 Contributions
As this master’s thesis follows an academic research framework and explores an empirical
problem, it is expected to contribute both practically and theoretically. The research findings
add to the existing body of knowledge of the informatics research field, and, in particular, to
the research community that studies digital supply chain transformation. The concerned
practitioners can be either supply chain managers in SMEs and/ or owners, and/or leaders of
such firms, who plan a digital transformation of the supply chain. The findings of this master’s
thesis offer support to the supply chain managers of SMEs in Iran at foremost to fully
understand the current status of their firm’s digitalization and to identify the success factors and
challenges of digital transformation.
Hence, based on Gregor’s (2006) categorization regarding contributions, this master’s
thesis research has a prescriptive contribution when it comes to practitioners. On the other hand,
the theoretical contribution is descriptive as the findings will concern the description of the
explored phenomenon.

6.3 Suggestions for Future Research

Since digital transformation is an extensive concept and is especially evolving in developing
countries, many areas remain to be studied in this domain. Although this research was
conducted in the context of Iran, similar research in other developing countries is suggested.
Due to the global Covid19 pandemic, this master's thesis was conducted virtually and through
semi-structured interviews, hence similar research through direct observation and face-to-face
interviews is suggested to improve the quality of collected data and findings. Also, future
research could focus on those SMEs involved in food production which operate in a more
complex environment. While the focus of this research was on digital transformation based on
ICT, future research could explore the concept of the fourth Industrial revolution (I4.0) in the
supply chain from the managers' perspective. Additionally, interested scholars are suggested to

Page 40 of 49
conduct similar research in food exporting SMEs since such SMEs are engaged in International
regulations and required different digital transformation strategies. Finally, to those scholars
interested in conducting research in the Iranian context, I would suggest research on the future
digital transformation of SMEs after lifting sanctions imposed on Iran.
It is hoped that the outcome of this research would support the body of knowledge in the
Informatics field and be of inspiration to more researchers to conduct similar research on
proposed topics relevant to the digital transformation of the supply chain.

Page 41 of 49
References

Almulhim, A, F. (2021), smart supply chain and firm performance: the role of digital
Technologies, Business Process Management Jurnal. [e-journal] 27 (5),
pp. 1353-1372. https://doi.org/10.1108/BPMJ-12-2020-0573

Arendt, L., (2008), Barriers to ICT adoption in SMEs: how to bridge the digital divide?
Journal of Systems and Information Technology. [e-journal] 10 (2), pp. 93-108.
http://doi.org/10.1108/13287260810897738

Assadzadeh, A., Khani, H., and Gassemi, A, Studying the effects of information and
communication technology on the performance of small and medium-sized
enterprises in Iran, 2015 9th International Conference on e-Commerce in
Developing Countries: With a focus on e-Business (ECDC).pp. 1-5, DOI:
10.1109/ECDC.2015.7156319.

Baker, J. (2012). The Technology–Organization–Environment Framework. In: Dwivedi, Y.,

Wade, M., Schneberger, S. (eds) Information Systems Theory. Integrated Series in
Information Systems, vol 28. Springer, New York, NY. https://doi.org/10.1007/978-1-
4419-6108-2_12

CBI, 2020, SMEs share statistics, [online], Available at :< https://www.cbi.ir/simplelist/

1589. aspx> [Accessed 11 April. 2022]

Crang, M. and Cook, I., 2007. Doing ethnographies. Sage. [online].Available at:
<http://dro.dur.as.uk/202/1/202.pdf> [Accessed 22 April, 2022]

Creswell, J. W., and Creswell, J. D., 2017. Research design: Qualitative, quantitative, and
mixed methods approaches. Sage publications.Available at: https://fe.unj.ac.id/wp-
content/uploads/2019/08/Research-Design_Qualitative-Quantitative-and-Mixed-
Methods-Approaches.pdf. [Accessed 20 May, 2022]

Denscombe, Martyn. (2017). The Good Research Guide For small-scale social research
projects Fifth Edition.[e-book] Available at:
https://www.researchgate.net/publication/338804805_The_Good_Research_Guide_For_sma
ll-scale_social_research_projects_Fifth_Edition>.[Accessed 11 May,2022]

Depietro, R., Wiarda, E. and Fleischer, M., 1990. The context for change: Organization,
technology and environment. The processes of technological innovation, 199(0),
pp.151-175.

Digital Iran, 2020. National Roadmap Executive Summary 2020-2025. Available at:
http://irandigitaltransformation.ir/wp-content/uploads/2020/06/Digital-Iran-Roadmap-
Executive-Summary.pdf.[ Accessed 18 February 2021[.

Page 42 of 49
Fayyaz, S., 2018, September. A review on measuring digital trade & e-commerce as new
economic statistics products. In The 16th Conference of IAOS.]Pdf[ Available at:
http: //www. oecd. org/iaos2018/programme/IAOS OECD2018_ Fayyaz. Pdf
(Accessed 2 July 2021).

E. N. Ganji, E.N., Coutroubis, A, and Shah, S. DCM 4.0: Integration of Industry 4.0 and
Demand Chain in Global Manufacturing, 2018 IEEE International Conference on
Engineering, Technology and Innovation (ICE/ITMC), 2018, pp. 1-7, DOI:
10.1109/ICE.2018.8436383.

Garay-Rondero, C.L., Martinez-Flores, J.L., Smith, N.R., Morales, S.O.C. and Aldrette
Malacara, A., 2020. Digital supply chain model in Industry 4.0. Journal of
Manufacturing Technology Management. [e-journal] 31(5)
https://doi.org/10.1108/JMTM-08-2018-0280

Ghobakhloo, M., Arias‐Aranda, D. and Benitez‐Amado, J., 2011. Adoption of e‐commerc

applications in SMEs. Industrial Management & Data Systems. [e-journal] 31(5),
pp. 887- 933. https://doi.org/10.1108/02635571111170785

Gotterbarn, D.W., Brinkman, B., Flick, C., Kirkpatrick, M.S., Miller, K., Vazansky, K. and
Wolf, M.J., 2018. ACM code of ethics and professional conduct. [pdf] Available at:
https://dora.dmu.ac.uk/bitstream/handle/2086/16422/acm-code-of-ethics-and-
professional-conduct.pdf?sequence=1

Gölzer, P. and Fritzsche, A., 2017. Data-driven operations management: organisational

implications of the digital transformation in industrial practice. Production Planning &
Control. [e-journal], 28(16), pp.1332-1343, http://dx.doi.org/10.1080/09537287.2017.
1375148

Gregor, S., 2006. The nature of theory in information systems. MIS Quarterly, [e-journal] 30,
pp. 611–642. DOI: 10.2307/25148742.

Gülçin Büyüközkan, G., Göçer, F. Digital Supply Chain: Literature review and a
framework for future research. Computers in Industry, vol 97, 2018, pp. 157-177.
https://doi.org/10.1016/j.compind.2018.02.010.

Hagberg, J., Sundstrom, M. and Egels-Zandén, N. (2016), The digitalization of retailing: an

exploratory framework, International Journal of Retail & Distribution Management,
[e-journal], Vol. 44 No. 7, pp. 694-712. https://doi.org/10.1108/IJRDM-09-2015-0140

Hajli, N., Sims, J. and Shanmugam, M. (2014), A practical model for e-commerce adoption in
Iran, Journal of Enterprise Information Management, [e-journal], Vol. 27 No. 6, pp.
719-730. https://doi.org/10.1108/JEIM-09-2013-0070.

ISIPO, 2022, Information on towns, industrial areas, and special economic zones until
December 2020, [online ] Available at:< http://isipo.ir/index.jsp?siteid=1&fkeyid=&
siteid=1&pageid=417> [Accessed 01 October 2022]

Page 43 of 49
La Scalia, G., Settanni, L., Micale, R. and Enea, M., 2016. Predictive shelf life model based
on RF technology for improving the management of food supply chain: A case study.
International Journal of RF Technologies, [e-journal], 7(1), pp.31-42.
DOI: 10.3233/RFT-150073

Levy, Y. and Ellis, T.J., 2006. A systems approach to conduct an effective literature review in
support of information systems research. Informing Science, 9. [pdf] Available at:
<https://www.cs.ryerson.ca/aferworn/courses/CP8101/CLASSES/Conducting
LiteratureReview.pdf > [Accesse 25 July 2022]

MacCarthy, B.L., Blome, C., Olhager, J., Srai, J.S. and Zhao, X. (2016), Supply chain
evolution – theory, concepts and science, International Journal of Operations &
Production Management, [e-journal], Vol. 36 No. 12, pp. 1696-1718.
https://doi.org/10.1108/IJOPM-02-2016-0080

Maj.ir, 2022, Food production annual reports, [online], Accessed through:

https://dla.maj.ir/page-dlaMain/FA/5/form/pId1597 [Accessed 11 April, 2022]

Mattevi, M. and Jones, J.A. (2016), Food supply chain: are UK SMEs aware of concept,
drivers, benefits and barriers, and frameworks of traceability? British Food Journal,
[e-journal], Vol. 118 No. 5. https://doi.org/10.1108/BFJ-07-2015-0261

Mertins, K., Jaekel, F.W. and Deng, Q., 2012, September. Towards information customization
and interoperability in food chains. In International IFIP Working Conference on
Enterprise Interoperability (pp. 92-103). [pdf] Accessed at: <http://link.springer.com/
content/pdf/10.1007/978-3-642-33068-1_10.pdf> [Accessed 25 July 2022]

Miller, K., McAdam, M., Spieth, P. and Brady, M., 2021. Business models big and small:
Review of conceptualisations and constructs and future directions for SME business
model research. Journal of Business Research, [e-journal], 131, pp.619-626.
https://doi.org/10.1016/j.jbusres.2020.12.036

Müller, F., Jaeger, D. and Hanewinkel, M., 2019. Digitization in wood supply–A review on
how Industry 4.0 will change the forest value chain. Computers and Electronics in
Agriculture, [e-journal], 162, pp.206-218. https://doi.org/10.1016/j.compag.2019.04.002

Myers, M.D. and Newman, M., 2007. The qualitative interview in IS research: Examining the
craft. Information and organization, [e-journal], 17(1), pp.2-26.
https://doi.org/10.1016/j.infoandorg.2006.11.001

Myers, M., 1997. Qualitative Research in Information Systems. MIS Quarterly [online]
available at https://www.researchgate.net/publication/220260372_Qualitative_
Research_in_Information_Systems > [Accessed 2021-02-04].

Nasiri, M., Ukko, J., Saunila, M. and Rantala, T., 2020. Managing the digital supply chain:
The role of smart technologies. Technovation, [e-journal] 96, p.102121.
https://doi.org/10.1016/j.technovation.2020.102121

Nazempour, R., Yang, J. and Javaid, Z., 2019, August. Effect of supply chain agility
dimensions on supply chain performance: A case of Iranian SMEs. In Proceedings of

Page 44 of 49
 the 2nd international conference on big data technologies [e-journal] (pp. 344-348).
https://doi.org/10.1145/3358528.3358538

Parvin, M., Asimiran, S.B. and Ayub, A.F.B.M. (2022), Impact of introducing e-commerce on
small and medium enterprises – a case on logistics provider, Society and Business
Review, [e-journal] Vol. 17 No. 3, pp. 469-484. https://doi.org/10.1108/SBR-10-
2020-0131
Patton, M. Q., 2015. Qualitative research and evaluation methods. [Online] Available at:
<https://us.sagepub.com/en-us/nam/qualitative-research-evaluation-
methods/book232962> [Accessed 25 July 2022]

Raab, M. and Griffin-Cryan, B., 2011. Digital transformation of supply chains. Creating
Value –When Digital Meets Physical, Capgemini Consulting. [pdf]Accessed at
https://www.capgemini.com/wp-content/uploads/2017/07/Digital_Transformation_of
_Supply_Chains.pdf [Accessed 10 March 2022]

Ramaswamy, V. and Ozcan, K., 2016. Brand value co-creation in a digitalized world: An
integrative framework and research implications. International Journal of Research in
Marketing, [e-journal], 33(1), pp.93-106. https://doi.org/10.1016/j.ijresmar.2015.07.001

Rasool, F., Greco, M. and Grimaldi, M. (2022), Digital supply chain performance metrics: a
literature review, Measuring Business Excellence, [e-journal], 26 (1), pp. 23- 38.
https://doi.org/10.1108/MBE-11-2020-0147

Rosemann, M. and Brocke, J.V., 2015. The six core elements of business process
management. In Handbook on business process management 1, [e-journal], pp. 105-
122. Springer, Berlin, Heidelberg. DOI: 10.1007/978-3-642-45100-3_5

Sadiku-Dushi, N., Dana, L.P. and Ramadani, V., 2019. Entrepreneurial marketing dimensions
and SMEs performance. Journal of Business Research, [e-journal], 100, pp.86-99.
https://doi.org/10.1016/j.jbusres.2019.03.025

Safar, L., Sopko, J., Bednar, S. and Poklemba, R., 2018. Concept of SME business model for
industry 4.0 environment. Tem Journal, [pdf] Accessed at:<http://www.temjournal.
com/content/73/TemJournalAugust2018_626_637.pdf> [Accesed 10 July, 2022]

Sanayei, A. and Rajabion, L., 2012. Critical successful factors contributing to e-commerce
adoption among Iranian SMEs. International Journal of Information Science and
Management (IJISM), [e-journal], 7(2), pp.57-65. Available at :< https://ijism.ricest.
ac.ir/index.php/ijism/article/view/125/113> [Accessed 22 July, 2022]

Schiliro, D., 2017. Knowledge-based economies and the institutional environment.

Theoretical and Practical Research in the Economic Fields, [e-journal], 3(1), pp.42-
50. Available at: https://www.journals.aserspublishing.eu/tpref/article/view/1168
[Accessed: 15 June, 2022]

SCI, 2021, SMEs expansion level across the country, [online], Access at: <https://www.amar.
org.ir/english/Statistics-by-Topic/Trade#2885192-definitions—concepts>
[Accessed 11 April, 2022]

Page 45 of 49
Singh, A., Klarner, P. and Hess, T., 2020. How do chief digital officers pursue digital
transformation activities? The role of organization design parameters. Long Range
Planning, [e-journal], 53(3), p.101890. https://doi.org/10.1016/j.lrp.2019.07.001

Singh, R., Baird, A. and Mathiassen, L., 2018. Collaboration risk management in IT-enabled
asymmetric partnerships: Evidence from telestroke networks. Information and
Organization, [e-journal], 28(4), pp.170-191. https://doi.org/10.1016/j.infoandorg.
2018.10.001
Solaymani, S., Sohaili, K. and Yazdinejad, E.A., 2012. Adoption and use of e-commerce in
SMEs. Electronic Commerce Research, [e-journal], 12(3), pp.249-263.
https://doi.org/10.1007/s10660-012-9096-6

Tay, H.L. and Loh, H.S., 2021. Digital transformations and supply chain management: a Lean
Six Sigma perspective. Journal of Asia Business Studies. [e-journal], Vol. 16 No. 2, pp.
340-353. https://doi.org/10.1108/JABS-10-2020-0415

Tornatzky, L.G., Fleischer, M. and Chakrabarti, A.K., 1990. Processes of technological

innovation. Lexington books, Lexington, MA.

Verhoef, P.C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J.Q., Fabian, N. and
Haenlein, M., 2021. Digital transformation: A multidisciplinary reflection and research
agenda. Journal of Business Research, [e-journal], 122, pp.889-901.
https://doi.org/10.1016/j.jbusres.2019.09.022

Witkowski, K., 2017. Internet of things, big data, industry 4.0–innovative solutions in
Logistics and supply chains management. Procedia engineering, [e-journal], 182,
pp.763-769. https://doi.org/10.1016/j.proeng.2017.03.197

Zhai, H., Yang, M. and Chan, K.C., 2021. Does digital transformation enhance a firm's
performance? Evidence from China. Technology in Society, [e-journal], p.101841.
https://doi.org/10.1016/j.techsoc.2021.101841

Zhong, R., Xu, X. and Wang, L., 2017. Food supply chain management: systems,
implementations, and future research. Industrial Management & Data Systems, [e-
journal], Vol. 117 No. 9, pp. 2085-2114. https://doi.org/10.1108/IMDS-09-2016-0391

Page 46 of 49
Appendices

Appendix A: Informed Consent Form for Master’s Thesis

Date: March 2022

Title of Research: Supply Chain Digital Transformation of SMEs in Iran, A Qualitative Research on
Success Factors and Challenges Based on Managers’ Perspectives
Researcher: Mahdi Fazlali, Master Program in Information Systems, Linnaeus University-Sweden.
Email: mf223mq@student.lnu.se
Mobile Phone: +46767570194
Purpose of the Research:
The purpose of the master’s thesis is to examine the success factors and challenges that managers of
SMEs in Iran experience in the process of supply chain digital transformation from traditional to digital.
For this purpose, my interest lies in your personal experience of processes, systems and technologies
used in the supply chain (including but not limited to the flow of products, data and funds in
manufacturing, purchasing, supply, procurement, transportation, inventory, quality control, packing,
distribution, and warehousing) from the raw material to delivery of finished products to the customer
and how you perceive support of such processes, systems and technologies in your day-to-day work.
Expected from You:
As a participant, you are expected to engage in a semi-structured interview, meaning that you will be
asked open questions that you are expected to reflect on and discuss with me. The interview will be held
either via a video-conferencing system of your choice, or over the telephone. The interview will be held
in Persian.
Participation and Confidentiality:
In accordance with the good research practice advocated by the Swedish Research Council
(Vetenskapsrådet), your participation implies the following:
• Your participation is 100% voluntary, meaning that you are allowed to withdraw your participation at
any time during the master’s thesis research.
• Detailed information about your company is not of interest for the purpose of this master’s thesis study
and will not be discussed during the interview.
• The audio/video generated during the interviews will be recorded for the purpose of
transcription and textual analysis in this master’s thesis study. The results of our discussions
will be used for the purpose of the master’s thesis study and for additional research purposes as
well.
• Personal information provided by you will only be used and stored during the time of this
master’s thesis research. Your participation in the study will be confidential and your name will
be fabricated in the final written master’s thesis.
Thank you for your participation, and please do not hesitate to contact me if you have any questions.
By signing this document, I agree to the terms in this consent form.

Date: Date:
Participant’s name: Researcher’s name: Mahdi Fazlali

Signature Signature

Page 47 of 49
Appendix B: Main of Semi-Structured Interviews Questions

1. Describe your company (e.g. history, size, products, market and customers)
2. Describe your position, responsibilities and work experience.
3. Could you share with me your opinion about the existing supply chain of your company?
4. If I say “digital transformation” what comes in your mind?
5. Have you started the digital transformation in your supply chain? If so, could you please
tell me about the digital transformation of your supply chain :
a. When did you start the digital transformation of supply chain?
b. What was it like before the transformation started?
c. What was the first step of the transformation?
d. How did (or do) you experience the process of transformation of the supply chain?
( discuss challenges, success factors, milestones, provide examples based on your
experience)
6. What is the reason your company started digital transformation of the supply chain?
What were the underlying derivers of digital transformation, what did the company want
to achieve?
7. Could you tell me what technologies existed in relation to the supply chain before the
transformation started and what technologies do you have now at your current phase?
8. How do you use these technologies at the current phase?
9. How the changes related to digital transformation affected the supply chain?
10. How the changes related to digital transformation affected the following ‘relationships’?
a. Customers
b. Suppliers
c. Partners
d. Competitors
e. Society (e.g. community, government)
f. Employees
11. How has the digital transformation of supply chain impacted the way the organization
work?
12. Which are, in your opinion, the most important changes related to digital transformation
in your supply chain?
13. Did your encounter any major challenges in digital transformation of supply chain in
your company? (e.g., cost, resistance from employees/customers/suppliers etc.)
14. Did you have any specific success that you consider them important lesson learned
regarding digital transformation of supply chain that you would like to share with me?
15. Does the company have any plan related to adaption of digital transformation? What
are your next steps?
16. Do you think I have missed any aspect that are important regarding the current status of
digital transformation of the supply chain of your company, related to challenges and
success factors?

Page 48 of 49