Prevalence and predictors of influencing digital transformation among small and medium-sized enterprises in the central highlands of Vietnam

Phiet Le The; Tuan Tran Anh; Hoa Ao Xuan

doi:10.31893/multiscience.2026359

Keywords:

digital transformation

small and medium enterprises

prevalence

predictor

central highlands

Abstract

Digital transformation (DT) has become a critical factor in the growth and competitiveness of small and medium-sized enterprises (SMEs), yet its adoption remains uneven across different regions. This study examines the prevalence and predictors of DT among SMEs in the Central Highlands of Vietnam. A cross-sectional survey was conducted among 380 randomly selected SMEs across five provinces, utilizing structured questionnaires to assess technological, organizational, and environmental influences. The results from analyses identified key predictors of digital transformation. While eight factors were initially associated with digital adoption, the multivariable analysis revealed that technology (OR = 2.476, p = 0.003), organization (OR = 3.514, p < 0.001), and environment (OR = 4.461, p < 0.001) were significant predictors. Additionally, SMEs with only one sales channel (OR = 1.947, p = 0.019) and those employing a single marketing strategy (OR = 2.197, p = 0.006) were significantly associated with DT. These findings underscore the importance of fostering a supportive digital ecosystem for SMEs through targeted policies, financial incentives, and infrastructure development. Policymakers and leaders should focus on reducing barriers, enhancing technological capabilities, and improving organizational readiness to drive DT.
References
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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to cite

The, P. L., Anh, T. T., & Xuan, H. A. (2025). Prevalence and predictors of influencing digital transformation among small and medium-sized enterprises in the central highlands of Vietnam. Multidisciplinary Science Journal, 8(6), 2026359. https://doi.org/10.31893/multiscience.2026359

[1] Al-Hajri, A., Abdella, G. M., Al-Yafei, H., Aseel, S., & Hamouda, A. M. (2024). A systematic literature review of the digital transformation in the Arabian Gulf’s oil and gas sector. Sustainability, 16(15), 6601.

[2] Bilal, M., Xicang, Z., Jiying, W., Sohu, J. M., Akhtar, S., & Hassan, M. I. U. (2024). Digital transformation and SME innovation: A comprehensive analysis of mediating and moderating effects. Journal of the Knowledge Economy, 1–30.

[3] Bui, D. T., Huan, N. H., & Ngo, V. M. (2021). Financial leverage and performance of SMEs in Vietnam: Evidence from the post-crisis period. Economics and Business Letters, 10(3), 229–239.

[4] Do Thi, M., Le Huyen, T., & Le Thi, L. (2024). The impact of policies on the digital transformation capability of Vietnamese agricultural enterprises: The moderating role of policy accessibility. Agricultural and Resource Economics: International Scientific E-Journal, 10(4), 101–128.

[5] Dörr, L., Fliege, K., Lehmann, C., Kanbach, D. K., & Kraus, S. (2023). A taxonomy on influencing factors towards digital transformation in SMEs. Journal of Small Business Strategy, 33(1), 53–69.

[6] Gyamerah, S., Afshari, L., & Asante, D. (2025). Digital transformation in the SME context: The nexus between leadership, digital capabilities and digital strategy. International Small Business Journal. Advance online publication. https://doi.org/10.1177/02662426251314108

[7] Ha, D. T., Le, T., & Fisher, G. (2024). Factors affecting the adoption of the balanced scorecard by small and medium sized enterprises: A developing country perspective. Ethics International Press.

[8] Hanh, P. T. M. (2020). Factors influencing human resources development in SMEs service enterprises in Industry 4.0: The case of Thai Nguyen Province, Vietnam. International Journal of Business, Economics and Management, 7(3), 166–173.

[9] Haq, E. U., & Abid, N. A. (2024). Navigating digital transformation: The impact of employee engagement and change readiness. NUST Business Review, 6(2).

[10] Huong, D. T., et al. (2024). Factors affecting access to finance for small and medium-sized agricultural enterprises in Vietnam. Asian Economic and Financial Review, 14(6), 437–450.

[11] Kipkirui, F. M. (2024). Assess factors influencing adoption of digital transformation among manufacturing sector firms in Nairobi region [Master’s thesis, Strathmore University].

[12] Kraft, C., Lindeque, J. P., & Peter, M. K. (2022). The digital transformation of Swiss small and medium-sized enterprises: Insights from digital tool adoption. Journal of Strategy and Management, 15(3), 468–494.

[13] Kursa, M. B., & Rudnicki, W. R. (2010). Feature selection with the Boruta package. Journal of Statistical Software, 36, 1–13.

[14] Li, S., Aman, A., Fernandez, D., Sanusi, S., Dong, S., Fan, Y., & Liao, Z. (2024). Value identification and its creation mechanism of digital transformation at enterprises. IEEE Access. https://doi.org/10.1109/ACCESS.2024

[15] Manikandan, G., Pragadeesh, B., Manojkumar, V., Karthikeyan, A. L., Manikandan, R., & Gandomi, A. H. (2024). Classification models combined with Boruta feature selection for heart disease prediction. Informatics in Medicine Unlocked, 44, 101442.

[16] Mushi, H. M. (2024). Digital marketing strategies and SMEs performance in Tanzania: Insights, impact, and implications. Cogent Business & Management, 11(1), 2415533.

[17] Nguyen, T. C., Son, N. T., Ly, N. K., Hanh, T. T., et al. (2023). Quality of personnel ethnic minority in the mountain area of Vietnam in the time of promoting industrial, modernizing the country. European Journal of Political Science Studies, 6(2).

[18] Nguyen, T. H., Le, X. C., & Vu, T. H. L. (2022). An extended technology–organization–environment (TOE) framework for online retailing utilization in digital transformation: Empirical evidence from Vietnam. Journal of Open Innovation: Technology, Market, and Complexity, 8(4), 200.

[19] Pelletier, C., L’Écuyer, F., & Raymond, L. (2025). Building organizational agility through digital transformation: A configurational approach in SMEs. Industrial Management & Data Systems. https://doi.org/10.1108/IMDS-2025

[20] Phiet, L. T. (2024). Factors influencing SMEs’ digital transformation: The case study in Central Highlands in Vietnam. Journal of System and Management Sciences, 14(1), 175–187.

[21] R Core Team. (2022). R: A language and environment for statistical computing. R Foundation for Statistical Computing. https://www.r-project.org/

[22] Shahriar, S. H. Bin. (2025). Future of work and talent development realities: A qualitative analysis from a developing country perspective. Journal of Management Development. https://doi.org/10.1108/JMD-2025

[23] Shaikh, Z. P. (2025). Entrepreneurship and innovation for sustainability and diversity in business cycle: Digital and automation technologies. In Building business knowledge for complex modern business environments (pp. 331–358). IGI Global.

[24] Shang, M., Jia, C., Zhong, L., & Cao, J. (2024). What determines the performance of digital transformation in manufacturing enterprises? A study on the linkage effects based on fs/QCA method. Journal of Cleaner Production, 450, 141856.

[25] Tajudeen, F. P., Moghavvemi, S., Thirumoorthi, T., Phoong, S. W., & Bahri, E. N. B. A. (2025). Digital transformation issues and challenges: Solutions for Malaysian SMEs. In Digital transformation of Malaysian small and medium enterprises (pp. 69–89). Emerald Publishing Limited.

[26] Truc, N. T., Vuong, V. T., Vy, P. T., Nga, H. T., Hoi, V. X., & Hoa, A. X. (2024a). Factors affecting the quality of ethnic minority human resources: A case study in the Central Highlands, Vietnam. Migration Letters, 21(3), 627–639.

[27] Truc, N. T., Vy, P. T., Nga, H. T., Vuong, V. T., Hoi, V. X., Tuan, T. A., & Hoa, A. X. (2024b). Prevalence and predictors of quality of ethnic minority human resources in the Central Highlands of Vietnam. Journal of Ecohumanism, 3(3), 1067–1077.

[28] Valdez-Juárez, L. E., Ramos-Escobar, E. A., Hernández-Ponce, O. E., & Ruiz-Zamora, J. A. (2024). Digital transformation and innovation, dynamic capabilities to strengthen the financial performance of Mexican SMEs: A sustainable approach. Cogent Business & Management, 11(1), 2318635.

[29] Van Hoa, N., Van Thu, P., Dat, N. T., Loan, L. T., & Phung, T. M. (2023). Impact of digital transformation on the decision-making process in logistics and construction enterprises in Vietnam. International Journal of Advanced Multidisciplinary Research and Studies, 3(1), 339–350.

[30] Zaid, M., Farooqi, R., & Azmi, S. N. (2025). Driving sustainable supply chain performance through digital transformation: The role of information exchange and responsiveness. Cogent Business & Management, 12(1), 2443047.

Abstract

References

How to cite