Keywords:
Digital technology
CFA
DX
EFA
Vietnamese SMEs

  • Abstract

    In the modern business context, digital transformation (DX) has emerged as an increasingly critical factor, profoundly influencing all dimensions of business operations. In particular, for small and medium-sized enterprises (SMEs), the DX roadmap is not merely a trend but a vital determinant of competitiveness and sustainable development in the global economy. Vietnamese SMEs play an essential role in promoting balanced development and facilitating regional economic restructuring. However, these enterprises face numerous challenges in adopting digital technologies, ranging from inadequate technological infrastructure and limited financial resources to a shortage of digital skills among employees. This study investigates the key factors influencing the DX process of Vietnamese SMEs and proposes practical implications to enhance the effectiveness of their digital initiatives. Utilizing survey data from 610 SMEs across 16 industry sectors, the study adopts a quantitative research approach, incorporating Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), and multiple linear regression to validate the conceptual framework. The findings identify four primary factors that significantly contribute to DX process: (1) customer experience and supply chain integration, (2) technological infrastructure and data governance, (3) human capital and organizational structure, and (4) enterprise leaders’ strategic orientation. The proposed model demonstrates strong explanatory power (R² = 0.905), affirming the relevance and applicability of the identified factors. Based on the research results, we provide recommendations for leaders of SMEs and relevant Vietnamese government agencies to formulate DX strategies tailored to the unique characteristics of enterprises in Vietnam.

  • References

    1. Ahmad, A., Maulana, R. & Muhammad, Y. (2024). Cybersecurity challenges in the era of digital transformation a comprehensive analysis of information systems. Journal Informatic, Education and Management, 6(1), 7-11. https://doi.org/10.61992/jiem.v6i1.57
    2. Almeida, F., Morais, J., & Santos, J. D. (2022). A bibliometric analysis of the scientific outcomes of European projects on the digital transformation of SMEs. Publications, 10(4), 1-18. https://doi.org/10.3390/publications10040034
    3. Bharadwaj, A., Sawy, O. A. E., Pavlou, P. A., & Venkatraman, N. (2013). Digital business strategy: Toward a next generation of insights. MIS Quarterly, 37(2), 471-482.
    4. Catlin, T., Lorenz, T., Sternfels, B., & Willmott, P. (2017). A Roadmap for a Digital Transformation. McKinsey & Company. https://www.mckinsey.com/industries/financial-services/our-insights/a-roadmap-for-a-digital-transformation/. Accessed on May 21, 2025
    5. Chen, Q., Zhang, W., Jin, N., Wang, X., Dai, P. (2022). Digital transformation evaluation for small and medium sized manufacturing enterprises using the fuzzy synthetic method DEMATEL-ANP. Sustainability, 14(20), 1-23. https://doi.org/10.3390/su142013038
    6. Costa Melo, I., Queiroz, G. A., Alves Junior, P. N., Sousa, T. B., Yushimito, W. F., & Pereira, J. (2023). Sustainable digital transformation in small and medium enterprises (SMEs): A review on performance. Heliyon, 9(3), 1-21. https://doi.org/10.1016/j.heliyon.2023.e13908
    7. Dam, T. T. H., Dam, T. T., Dang, T. M. N., & Nguyen, T. T. H. (2025). The impact of digital transformation on the financial performance of listed F&B companies in Vietnam. International Journal of Innovative Research and Scientific Studies, 8(2), 33–43. https://doi.org/10.53894/ijirss.v8i2.5092
    8. De Reuver, M., Sørensen, C., & Basole, R. C. (2018). The digital platform: a research agenda. Journal of Information Technology, 33(2), 124-135. https://doi.org/10.1057/s41265-016-0033-3
    9. Fitzgerald, M., Kruschwitz, N., Bonnet, D., & Welch, M. (2014). Embracing Digital Technology: A New Strategic Imperative. MIT Sloan Management Review, 55(2), 1-12.
    10. Gonçalves, M., Silva A., Ferreira, C. (2022). The Future of Accounting: How Will Digital Transformation Impact the Sector? Informatics, 9(1), 1-17. https://doi.org/10.3390/informatics9010019
    11. Gouveia, F. D., & Mamede, H. S. (2022). Digital transformation for SMEs in the retail industry. Procedia Computer Science, 204(1), 671-681. https://doi.org/10.1016/j.procs.2022.08.081
    12. Haffke, I., Kalgovas, B., & Benlian, A. (2016). The role of the CIO and the CDO in an organization's digital transformation. Information Technology & People, 29(5), 901-919.
    13. Hair J. F., Anderson R. E., Tatham R. L., & Black W. C. (1998). Multivariate data analysis. 5th Edition. Prentice Hall, Upper Saddle River, USA.
    14. Holl, A. & Rama, R. (2024). SME digital transformation and the COVID-19 pandemic: a case study of a hard-hit metropolitan area. Science and Public Policy, 51(6), 1212–1226. https://doi.org/10.1093/scipol/scae023
    15. Interreg Europe (2022). Fostering the digital transformation of SMEs. https://www.interregeurope.eu/. Accessed on May 25, 2025.
    16. Kahveci, E. (2025). Digital Transformation in SMEs: Enablers, Interconnections, and a Framework for Sustainable Competitive Advantage. Administrative Sciences, 15(3), 1-16. https://doi.org/10.3390/admsci15030107
    17. Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley, N. (2015). Strategy, not technology, drives digital transformation. MIT Sloan Management Review. https://sloanreview.mit.edu/projects/strategy-drives-digital-transformation/. Accessed on May 25, 2025
    18. Korachi, Z., & Bounabat, B. (2020). General approach for formulating a digital transformation strategy. Journal of Computer Science, 16(4), 493-507. https://doi.org/10.3844/jcssp.2020.493.507
    19. Kusuma, A. R., Syarief, R., Sukmawati, A., Ekananta, A. (2024). Factors influencing the digital transformation of sales organizations in Indonesia. Heliyon, 10(5), 1-28. https://doi.org/10.1016/j.heliyon.2024.e27017
    20. Le, N. H. & Do V. Q. (2024). The role of small and medium enterprises in sustainable socio-economic development. Journal of Political Theory (Online). https://lyluanchinhtri.vn/vai-tro-cua-doanh-nghiep-nho-va-vua-trong-phat-trien-kinh-te-xa-hoi-theo-huong-ben-vung-6359.html. Accessed on May 15, 2025
    21. Leso, B. H., Cortimiglia, M. N. & Ghezzi, A. (2023). The contribution of organizational culture, structure, and leadership factors in the digital transformation of SMEs: a mixed-methods approach. Cognition, Technology & Work, 25(1), 151–179. https://doi.org/10.1007/s10111-022-00714-2
    22. MacKinnon, J. G., & White, H. (1985). Some heteroskedasticity-consistent covariance matrix estimators with improved finite sample properties. Journal of Econometrics, 29(3), 305–325. https://doi.org/10.1016/0304-4076(85)90158-7
    23. Mazzei, A., & Noble, C. H. (2017). Big data dreams: A framework for corporate strategy. Business Horizons, 60(3), 405-414. https://doi.org/10.1016/j.bushor.2017.01.010
    24. Minh, L. N., Tan N. N., Toan, D. V., Thao, T. D., Huyen. N. T, & Hoai, N. T. (2024). Digital transformation in Vietnam: A case study of Hanoi SMEs. International Journal of Advanced and Applied Sciences, 11(4), 207-215. https://doi.org/10.21833/ijaas.2024.04.022
    25. Mohamad, A., & Muhammad, L. (2024). Influencing factors of digital transformation in developing economies a case study of Malaysia’s SME sector. International Journal of Business and Society, 25(2), 696–712. https://doi.org/10.33736/ijbs.7623.2024
    26. Möller, D. P. (2023). Cybersecurity in digital transformation. In Proceedings of the Guide to Cybersecurity in Digital Transformation: Trends, Methods, Technologies, Applications and Best Practices (pp. 1-70). Cham: Springer Nature Switzerland.
    27. MPI (2024). Small and medium enterprises always have a special position and play an important role in socio-economic development. https://www.mpi.gov.vn/portal/Pages/2024-8-28/Bo-truong-Nguyen-Chi-Dung-doanh-nghiep-nho-va-vua-lyv5l6.aspx. Accessed on May 10, 2025
    28. Naim, I. ., Rajuddin, W. O. N., & Ansyori, A. (2024). Customer relationship management in the digital era to enhance customer experience through technology. Transforma Jurnal Manajemen, 2(2), 120–128. https://doi.org/10.56457/tjm.v2i2.131
    29. Nessrine, O., Nada, R & Adnane, M., Dabic, M. & Sascha, K. (2022). Drivers of Digital Transformation in SMEs. IEEE Transactions on Engineering Management, 71(1), 5030 - 5043. https://doi.org/10.1109/TEM.2022.3215727
    30. Neuman W. L. (2014). Social research methods: Qualitative and quantitative approaches. 7th Edition. Pearson, London, UK.
    31. Nguyen, T. V. A, Hoang, T. T., Mai, T. D., Lam, T. H. & Pham, H. N. (2023). The factors affecting digital transformation in small and medium enterprises in Hanoi city. Uncertain Supply Chain Management, 11, 1705–1718. https://doi.org/10.5267/j.uscm.2023.6.019
    32. Ning, L., & Yao, D. (2023). The impact of digital transformation on supply chain capabilities and supply chain competitive performance. Sustainability, 15(13), 1-22. https://doi.org/10.3390/su151310107
    33. Nnenna, U., Turyamureeba, S., Masudi, K., Ongesa, T. & Extension, K. (2024). Digital Transformation in SMEs: Challenges, Technologies, and Best Practices. Research Invention Journal of Current Issues in Arts and management, 3(2), 49-55. https://www.researchgate.net/publication/380928992.
    34. Petropoulou, A., Angelaki, E., Rompogiannakis, I., Passas, I., Garefalakis, A., & Thanasas, G. (2024). Digital Transformation in SMEs: Pre- and Post-COVID-19 Era: A Comparative Bibliometric Analysis. Sustainability, 16(23), 1-16. https://doi.org/10.3390/su162310536
    35. Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard Business Review, 92(11), 64-88.
    36. Sahlman, K., & Haapasalo, H. (2009). Elements of strategic management of technology: A conceptual framework of enterprise practice. International Journal of Management and Enterprise Development, 7(3), 319-337.
    37. Stoianova, O. V., Lezina, T. A., & Ivanova, V. V. (2020). The framework for assessing company’s digital transformation readiness. Vestnik Sankt-Peterburgskogo Universiteta. Ekonomika, 36(2), 243-265. https://doi.org/10.21638/spbu05.2020.204
    38. Surahman, Shee, H., Fitrian, Z., Adi, A. S. & Yudaruddin, R. (2023). The effect of digital transformation and innovation on SMEs’ performance in times of COVID-19. Problems and Perspectives in Management, 21(4), 84-100. http://doi.org/10.21511/ppm.21(4).2023.07
    39. Syahrial, H., Lores, L., Siregar, D., & Nazwa, S. (2024). Crucial Factors Influencing the Success of SMEs in the Digital Transformation Era. Information Management and Business Review, 16(3), 181-187. https://doi.org/10.22610/imbr.v16i3(I)S.4053
    40. Unsal, E. & Cetindamar, D. (2015). Technology management capability: definitions and its measurement. European International Journal of Science and Technology, 4(2), 181-196.
    41. Werth, O., Schwarzbach, C., Cardona, D. R., Breitner, M. H., Schulenburg, J. G. (2020) . Influencing factors for the digital transformation in the financial services sector. ZversWiss, 109, 155–179. https://doi.org/10.1007/s12297-020-00486-6
    42. Zou, L., Li, W., Wu, H., Liu, J., & Gao, P. (2024). Measuring Corporate Digital Transformation: Methodology, Indicators and Applications. Sustainability, 16(10), 1-15. https://doi.org/10.3390/su16104087
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Copyright (c) 2026 The Authors

How to cite

Tu, D. T., Linh, B. T. H., Hong, T. T. M., Huyen, D. T. T., & Nguyet, T. T. M. (2025). Strategic enablers of digital transformation: A quantitative study on SMEs in Vietnam. Multidisciplinary Science Journal, 8(5), 2026252. https://doi.org/10.31893/multiscience.2026252
Crossref
Scopus
Google Scholar
Europe PMC
  • Article viewed - 778
  • PDF downloaded - 274