International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

Frequency: 12

line decor
  
line decor

 Volume 11, Issue 4 (April 2024), Pages: 207-215

----------------------------------------------

 Original Research Paper

Digital transformation in Vietnam: A case study of Hanoi SMEs

 Author(s): 

 Luong Ngoc Minh 1, Nguyen Ngoc Tan 1, Dinh Van Toan 2, Truong Duc Thao 3, *, Nguyen Thanh Huyen 3, Nguyễn Thu Hoài 4

 Affiliation(s):

 1Faculty of Business Administration and Tourism, Hanoi University, Hanoi, Vietnam
 2VNU Center for Education Accreditation (VNU-CEA), Hanoi, Vietnam
 3Faculty of E-Commerce and Digital Economy, Dai Nam University, Hanoi, Vietnam
 4Faculty of Economics and Management, Thang Long University, Hoàng Mai, Vietnam

 Full text

  Full Text - PDF

 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0003-1160-4312

 Digital Object Identifier (DOI)

 https://doi.org/10.21833/ijaas.2024.04.022

 Abstract

This research involved surveying 456 Small and Medium-sized Enterprises (SMEs) in Hanoi, Vietnam, to understand the factors that affect their digital transformation. After gathering the data, it was analyzed using advanced statistical methods, specifically Structural Equation Modeling (SEM), with the help of software tools like SPSS and AMOS. The findings revealed six key factors that play a significant role in the digital transformation of SMEs. These factors mostly impact the process indirectly by shaping the companies' intentions toward digital transformation, with a less direct influence on the transformation process itself.

 © 2024 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords

 Digital transformation, SMEs, Structural equation modeling, Digital transformation intention

 Article history

 Received 5 December 2023, Received in revised form 15 April 2024, Accepted 18 April 2024

 Acknowledgment 

No Acknowledgment.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Minh LN, Tan NN, Toan DV, Thao TD, Huyen NT, and Hoài NT (2024). Digital transformation in Vietnam: A case study of Hanoi SMEs. International Journal of Advanced and Applied Sciences, 11(4): 207-215

 Permanent Link to this page

 Figures

 Fig. 1  

 Tables

 Table 1 Table 2 Table 3

----------------------------------------------   

 References (36)

  1. Agarwal R (2020). Digital transformation: A path to economic and societal value. Revista CEA, 6(12): 9-12. https://doi.org/10.22430/24223182.1700   [Google Scholar]
  2. Ajzen I (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2): 179-211. https://doi.org/10.1016/0749-5978(91)90020-T   [Google Scholar]
  3. Bharadwaj AS (2000). A resource-based perspective on information technology capability and firm performance: An empirical investigation. MIS Quarterly, 24(1): 169-196. https://doi.org/10.2307/3250983   [Google Scholar]
  4. Brennen JS and Kreiss D (2016). Digitalization. In: Craig RT (Ed.), The international encyclopedia of communication theory and philosophy: 1-11. Wiley-Blackwell, Hoboken, USA. https://doi.org/10.1002/9781118766804.wbiect111   [Google Scholar]
  5. Chatterjee D, Grewal R, and Sambamurthy V (2002). Shaping up for e-commerce: Institutional enablers of the organizational assimilation of web technologies. MIS Quarterly, 26(2): 65-89. https://doi.org/10.2307/4132321   [Google Scholar]
  6. Daniel EM and Wilson HN (2003). The role of dynamic capabilities in e-business transformation. European Journal of Information Systems, 12: 282-296. https://doi.org/10.1057/palgrave.ejis.3000478   [Google Scholar]
  7. Davis FD (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3): 319-340. https://doi.org/10.2307/249008   [Google Scholar]
  8. Dremel C, Wulf J, Herterich MM, Waizmann JC, and Brenner W (2017). How AUDI AG established big data analytics in its digital transformation. MIS Quarterly Executive, 16(2): 81-100.   [Google Scholar]
  9. Dung PX, Trung VT, Thao TD, and Hoang CC (2023). Intention to apply rehabilitation exercises to patients in healthcare facilities in Vietnam. International Journal of Advanced and Applied Sciences, 10(6): 80-88. https://doi.org/10.21833/ijaas.2023.06.010   [Google Scholar]
  10. Eller R, Alford P, Kallmünzer A, and Peters M (2020). Antecedents, consequences, and challenges of small and medium-sized enterprise digitalization. Journal of Business Research, 112: 119-127. https://doi.org/10.1016/j.jbusres.2020.03.004   [Google Scholar]
  11. Fitzgerald M, Kruschwitz N, Bonnet D, and Welch M (2014). Embracing digital technology: A new strategic imperative. MIT Sloan Management Review, 55(2): 1-12.   [Google Scholar]
  12. Gamache S, Abdul-Nour G, and Baril C (2019). Development of a digital performance assessment model for Quebec manufacturing SMEs. Procedia Manufacturing, 38: 1085-1094. https://doi.org/10.1016/j.promfg.2020.01.196   [Google Scholar]
  13. Hai H, Xuan N, Thao T, and Hien P (2021). The effects of strategy and market orientation on the performance of Vietnamese startups. Management Science Letters, 11(4): 1357-1366. https://doi.org/10.5267/j.msl.2020.11.004   [Google Scholar]
  14. Hair JF, Anderson RE, Tatham RL, and Black WC (1998). Multivariate data analysis. 5th Edition, Prentice Hall, Upper Saddle River, USA.   [Google Scholar]
  15. Hess T, Matt C, Benlian A, and Wiesböck F (2016). Options for formulating a digital transformation strategy. MIS Quarterly Executive, 15(2): 123-139.   [Google Scholar]
  16. Kim K and Kim B (2022). Decision-making model for reinforcing digital transformation strategies based on artificial intelligence technology. Information, 13(5): 253. https://doi.org/10.3390/info13050253   [Google Scholar]
  17. Kim S, Choi B, and Lew YK (2021). Where is the age of digitalization heading? The meaning, characteristics, and implications of contemporary digital transformation. Sustainability, 13(16): 8909. https://doi.org/10.3390/su13168909   [Google Scholar]
  18. Kohli R and Johnson S (2011). Digital transformation in latecomer industries: CIO and CEO leadership lessons from Encana Oil and Gas (USA) Inc. MIS Quarterly Executive, 10(4): 141-156.   [Google Scholar]
  19. Lanzolla G and Anderson J (2008). Digital transformation. Business Strategic Review, 19(2): 72–76. https://doi.org/10.1111/j.1467-8616.2008.00539.x   [Google Scholar]
  20. Le Viet H and Dang Quoc H (2023). The factors affecting digital transformation in Vietnam logistics enterprises. Electronics, 12(8): 1825. https://doi.org/10.3390/electronics12081825   [Google Scholar]
  21. Li L, Su F, Zhang W, and Mao JY (2018). Digital transformation by SME entrepreneurs: A capability perspective. Information Systems Journal, 28(6): 1129-1157. https://doi.org/10.1111/isj.12153   [Google Scholar]
  22. Loebbecke C and Picot A (2015). Reflections on societal and business model transformation arising from digitization and big data analytics: A research agenda. The Journal of Strategic Information Systems, 24(3): 149-157. https://doi.org/10.1016/j.jsis.2015.08.002   [Google Scholar]
  23. Mai NTT, Smith K, and Cao JR (2009). Measurement of modern and traditional self-concepts in Asian transitional economies. Journal of Asia-Pacific Business, 10(3): 201-220. https://doi.org/10.1080/10599230903094745   [Google Scholar]
  24. Matt C, Hess T, and Benlian A (2015). Digital transformation strategies. Business and Information Systems Engineering, 57, 339-343. https://doi.org/10.1007/s12599-015-0401-5   [Google Scholar]
  25. Nadkarni S and Prügl R (2021). Digital transformation: A review, synthesis and opportunities for future research. Management Review Quarterly, 71: 233-341. https://doi.org/10.1007/s11301-020-00185-7   [Google Scholar]
  26. Neuman WL (2014). Social research methods: Qualitative and quantitative approaches. 7th Edition, Pearson, London, UK.   [Google Scholar]
  27. Nguyen TKA and Nguyen TXN (2022). Các nhân tố ảnh hưởng đến chuyển đổi số của doanh nghiệp: Trường hợp nghiên cứu tại Bình Định. Journal of Economics and Development, 304(2): 65-74.   [Google Scholar]
  28. Ong CM, Kathawala Y, and Sawalha N (2015). A model for ISO 9000 quality management system maintenance. Quality Management Journal, 22(2): 11-32. https://doi.org/10.1080/10686967.2015.11918426   [Google Scholar]
  29. Sia SK, Soh C, and Weill P (2016). How DBS Bank pursued a digital business strategy. MIS Quarterly Executive, 15(2): 105-121.   [Google Scholar]
  30. Singhdong P, Suthiwartnarueput K, and Pornchaiwiseskul P (2021). Factors influencing digital transformation of logistics service providers: A case study in Thailand. The Journal of Asian Finance, Economics and Business, 8(5): 241-251.   [Google Scholar]
  31. Stoianova O, Lezina T, and Ivanova V (2020). Corporate culture: Impact on companies’ readiness for digital transformation. In: Tobji MAB, Jallouli R, Samet A, Touzani M, Strat VA, and Pocatilu P (Eds.), Digital economy: Emerging technologies and business innovation. ICDEc 2020. Lecture notes in business information processing: 13-26. Volume 395, Springer, Cham, Switzerland. https://doi.org/10.1007/978-3-030-64642-4_2   [Google Scholar]
  32. Stolterman E and Fors AC (2004). Information technology and the good life. In: Kaplan B, Truex DP, Wastell D, Wood-Harper AT, and DeGross JI (Eds.), Information systems research: International federation for information processing: 687-692. Volume 143, Springer, Boston, USA. https://doi.org/10.1007/1-4020-8095-6_45   [Google Scholar]
  33. Tang Z, Chen X, and Wu Z (2010). Using behavior theory to investigate individual-level determinants of employee involvement in TQM. Total Quality Management, 21(12): 1231-1260. https://doi.org/10.1080/14783363.2010.530794   [Google Scholar]
  34. White M (2012). Digital workplaces: Vision and reality. Business Information Review, 29(4): 205-214. https://doi.org/10.1177/0266382112470412   [Google Scholar]
  35. Wu W, Song J, Lu L, and Guo H (2024). Is managerial ability a catalyst for driving digital transformation in enterprises? An empirical analysis from internal and external pressure perspectives. PLOS ONE, 19(2): e0293454. https://doi.org/10.1371/journal.pone.0293454   [Google Scholar] PMid:38349897 PMCid:PMC10863858
  36. Zinder E and Yunatova I (2016). Synergy for digital transformation: Person’s multiple roles and subject domains integration. In: Chugunov A, Bolgov R, Kabanov Y, Kampis G, and Wimmer M (Eds.), Digital transformation and global society: Communications in computer and information science: 155–168. Volume 674, Springer, Cham, Switzerland. https://doi.org/10.1007/978-3-319-49700-6_16   [Google Scholar]