FACTORS INFLUENCING THE DIGITAL TRANSFORMATION OF SMALL AND MEDIUM ENTERPRISES: A STUDY IN VIETNAM

Abstract

Based on survey results collected from 221 small and medium enterprises (SMEs) in Vietnam, this study aims to analyze the factors influencing the level of digital transformation among SMEs. Digital transformation is a key driver for SMEs to integrate internationally, achieve sustainable development, and increase their contributions to the community at a low cost (OECD, 2017). Recognizing the importance of this issue, many empirical studies have explored the factors that enhance the effectiveness of digital transformation in SMEs. However, previous research has paid limited attention to external factors affecting businesses (Tarutė et al., 2018) and has largely relied on practical observations rather than theoretical foundations. This article proposes a theoretical model of the factors influencing digital transformation effectiveness in SMEs, including both internal and external factors. Future research can apply this proposed model for qualitative or quantitative analysis. Moreover, businesses can also use the model to identify favorable and challenging factors impacting the digital transformation process, thereby developing more appropriate solutions and implementation strategies.