This paper identifies and analyzes barriers of customer relationship management (CRM) implementation in SMEs. Hence, based on a comprehensive review of the literature and gathering the viewpoint of experts, the influencing barriers are identified. In order to analyze the identified barriers, DEMATEL methodology is applied and a causal model of the relationships between barriers is developed. Furthermore, based on the DEMATEL results the barriers are also categorized into two groups of driver and dependent. The results of study show that inadequate budget, organization culture, obligation of major management to CRM and inadequate access to modern technical knowledge are among effective impediments and play important role in successful establishment of customer relationship management system.