PurposeThe process of supply chain digitalization (SCD) through enterprise and inter-enterprise information systems (EIIS) is a challenging task. Understanding and studying barriers of SCD adopting EIIS are essential for better management of supply chains (SCs) in the long run. This paper analyses the key EIIS adoption barriers affecting the process of SCD.Design/methodology/approach Fifteen key EIIS barriers of SCD in the context of an electronic SC were identified from existing literature and in consultation with experts from industry and academia. Grey-based decision-making trial and evaluation laboratory (DEMATEL) methodology is used to identify cause–effect relationship and extent of the strength of relationship amongst EIIS barriers. Sensitivity analysis is done to verify the robustness of the study.Findings EIIS barriers were classified into seven major cause factors and eight effect factors. This study provides a structural framework of key EIIS adoption barriers to decision makers by classifying barriers into cause and effect groups for effective SCD and better management.Originality/value This study contributes to SC literature by exploring key EIIS barriers affecting the process of SCD. These findings will also help the practitioners in effective decision making for digitalization.