The Digital Trust Gap: A Qualitative Study of Leadership Resistance in Pakistani SMEs

Abstract

The integration of Supply Chain Technology (SCT) is a primary driver of global industrial competitiveness, yet Small and Medium Enterprises (SMEs) in Pakistan remain tethered to traditional manual practices. This qualitative study explores the multifaceted barriers to SCT adoption through the lenses of the Technology Acceptance Model (TAM) and Diffusion of Innovation (DOI) theory. Utilizing semi-structured interviews with 20 SME owners and supply chain experts across Lahore, Karachi, and Islamabad, the research identifies a hierarchy of inhibitors. Key findings suggest that while financial constraints are significant, the "internal bottleneck"-comprising leadership apprehension, cultural resistance to transparency, and a severe technical skills gap-acts as the primary deterrent. Furthermore, external systemic failures, including unreliable digital infrastructure and a lack of government-led fiscal incentives, exacerbate the digital divide. The study concludes with a strategic framework for "Incremental Digitalization," recommending that SMEs adopt scalable cloud solutions while policymakers focus on digital literacy and infrastructure stability.