Navigating Digital Transformation in the Distribution Sector in Emerging Economies: Insights from Vietnam

Document Type : Research Paper

Authors

1 Foreign Trade University, Vietnam

2 Department of Marketing - School of International Business and Economics – Foreign Trade University (FTU), Vietnam

Abstract

This study aims to investigate the key determinants influencing digital transformation adoption in Vietnam’s distribution sector, focusing on factors such as technology infrastructure, leader support, financial investment, market pressure, and organizational readiness to change. Utilizing a quantitative research approach, the researchers collected data from 288 managers and staff through structured questionnaires. The analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM), revealing that market pressure and readiness to change are the most significant predictors of digital transformation. Contrary to prior assumptions, leadership support and financial investment did not directly influence adoption; rather, they contributed indirectly by shaping organizational culture. The study offers practical implications for managers in emerging economies and contributes to the theoretical understanding of digital transformation drivers.

Keywords

Main Subjects


Abad-Segura, E., González-Zamar, M. D., Vázquez-Cano, E., & López-Meneses, E. (2020). Sustainable Management of Digital Transformation in Higher Education: Global Research Trends. Sustainability, 12(5), 2107, https://doi.org/10.3390/su12052107.
Akbari, M., Kok, S., Hopkins, J., Frederico, G., Nguyen, H., & Alonso, A. (2023). The changing landscape of digital transformation in supply chains: impacts of industry 4.0 in Vietnam. The International Journal of Logistics Management. 35(4), 1040-1072. https://doi.org/10.1108/IJLM-11-2022-0442
Alexander, K., & Karametaxas, X. (2021). Digital transformation and financial inclusion. In Routledge Handbook of Financial Technology and Law. 273-290. Routledge.
Andriole, S. (2018). Skills and Competencies for Digital Transformation. IT Professional, 20, 78-81. https://doi.org/10.1109/MITP.2018.2876926.
Anwar, M., Tajeddini, K., & Ullah, R. (2020). Entrepreneurial finance and new venture success‐the moderating role of government support. Business Strategy & Development3(4), 408-421. https://doi.org/10.1002/bsd2.105
Arner, D., Buckley, R., Zetzsche, D., & Veidt, R. (2019). Sustainability, FinTech and Financial Inclusion. European Business Organization Law Review, 21, 7-35. https://doi.org/10.1007/s40804-020-00183-y.
Belozyorov, S., Sokolovska, O., & Kim, Y. (2020). Fintech as a Precondition of Transformations in Global Financial Markets. Foresight and STI Governance. 14(2). 23-35https://doi.org/10.17323/2500-2597.2020.2.23.35
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. https://www.jstor.org/stable/43825919
Bresciani, S., Ferraris, A., Romano, M., & Santoro, G. (2021). Digital transformation management for agile organizations: A compass to sail the digital world. Emerald Publishing Limited. https://doi.org/10.1108/978-1-80043-171-320211011
Camarinha-Matos, L. M., Afsarmanesh, H., & Fornasiero, R. (2019). Collaborative networks and digital transformation. Applied sciences. 9(24). 5431. https://doi.org/10.3390/app9245431
Ciuriak, D., & Ptashkina, M. (2018). The Digital Transformation and the Transformation of International Trade RTA Exchange. Geneva: International Centre for Trade and Sustainable Development (ICTSD) and the Inter-American Development Bank (IDB) . Retrieved from: http://hdl.handle.net/11159/1651
Ciuriak, D., & Ptashkina, M. (2019). Leveraging the digital transformation for development: a global south strategy for the data-driven economy. Centre for International Governance Innovation. Retrieved from: http://www.jstor.com/stable/resrep21057
Fan, M., Liu, J., Tajeddini, K., & Khaskheli, M. B. (2023). Digital technology application and enterprise competitiveness: The mediating role of ESG performance and green technology innovation. Environment, Development and Sustainability, 1-31. https://doi.org/10.1007/s10668-023-03979-3
Feroz, A. K., Zo, H., & Chiravuri, A. (2021). Digital transformation and environmental sustainability: A review and research agenda. Sustainability, 13(3), 1530. https://doi.org/10.3390/su13031530
Gao, F., Lin, C., & Zhai, H. (2022). Digital Transformation, Corporate Innovation, and International Strategy: Empirical Evidence from Listed Companies in China. Sustainability. 14(13). 8137. https://doi.org/10.3390/su14138137.
Guan, Y. (2023). The Impact of Digital Transformation on Enterprise Innovation. Frontiers in Business, Economics and Management, 11(1), 112-116. https://doi.org/10.54097/fbem.v11i1.11824
Guinan, P. J., Parise, S., & Langowitz, N. (2019). Creating an innovative digital project team: Levers to enable digital transformation. Business Horizons62(6), 717-727. https://doi.org/10.1016/j.bushor.2019.07.005
Hair Jr, J. F., Sarstedt, M., Matthews, L. M., & Ringle, C. M. (2016). Identifying and treating unobserved heterogeneity with FIMIX-PLS: part I–method. European Business Review28(1), 63-76. https://doi.org/10.1108/EBR-09-2015-0094
Hanelt, A., Bohnsack, R., Marz, D., & Antunes, C. (2020). A Systematic Review of the Literature on Digital Transformation: Insights and Implications for Strategy and Organizational Change. Journal of Management Studieshttps://doi.org/10.1111/JOMS.12639.
Jardak, M. K., & Ben Hamad, S. (2022). The effect of digital transformation on firm performance: evidence from Swedish listed companies. The Journal of Risk Finance23(4), 329-348. https://doi.org/10.1108/JRF-12-2021-0199
Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley, N. (2015). Strategy, not technology, drives digital transformation. MIT Sloan Management Review and Deloitte University Press, July 2015. Retrieved from: https://digital.fuerstenberg-forum.de/wp-content/uploads/2014/03/57181-MIT-Deloitte-Digital2015.pdf
Liew, A., O’Leary, D., Perdana, A., & Wang, T. (2022). Digital Transformation in Accounting and Auditing. Journal of Information Systems Panel Discussion, 36, 177-190. https://doi.org/10.2308/isys-2022-008.
Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business & Information Systems Engineering, 57(5), 339-343. https://doi.org/10.1007/s12599-015-0401-5
Nadkarni, S., & Prügl, R. (2021). Digital transformation: a review, synthesis and opportunities for future research. Management review quarterly71(2), 233-341. https://doi.org/10.1007/s11301-020-00185-7
Nazir, S. (2019). CIO Interview with Ali Aurangzeb, Head of Global Marketing and Deputy Head of Digital Transformation, NETSOL Technologies, Inc. Journal of Global Information Technology Management, 22, 146 - 149. https://doi.org/10.1080/1097198X.2019.1603738.
Ngo, M. P. (2022). Opportunities and Challenges of Digital Transformation in Vietnam's Tourism Industry. International Journal of Economics, Business and Management Research. 6(12), 17-29.  https://doi.org/10.51505/ijebmr.2022.61202.
Nguyen, X. A., Luong, D. H., Le, T. P. T., Hoang, T. D., & Tran, T. G. (2022). Readiness of Vietnamese high schools for digital transformation and its influencing factors: A quantitative study. Asian Research Journal of Arts & Social Sciences, 18(3), 157-171. http://dx.doi.org/10.9734/arjass/2022/v18i330351
Nguyen, D. C., & Dao, T. A. (2023). Digital transformation in Vietnam. Journal of Southeast Asian Economies, 40(1), 127-144. Retrieved from: https://www.jstor.org/stable/e27211220
Pereira, C., Durão, N., Moreira, F., & Veloso, B. (2022). The Importance of Digital Transformation in International Business. Sustainability, 14(2), 834. https://doi.org/10.3390/su14020834.
Pham, T. M., & Nguyen, H. N. (2023). Insights into Digital Transformation Adoption in State-Owned Organizations: A Study from Vietnam. Journal of Business and Management Studies. 5(5), 249-259. https://doi.org/10.32996/jbms.2023.5.5.21.
Phan, Y. L. (2021). Corporate Culture’s Role on Digital Transformation, Lesson Learnt for Vietnam Businesses. Proceedings of the International Conference on Emerging Challenges: Business Transformation and Circular Economy (ICECH 2021). https://doi.org/10.2991/aebmr.k.211119.009
Phan, D. M., & Dinh, H. T. (2023). Digital transformation of business community in globalization: an empirical study in a typical developing country. Eastern-European Journal of Enterprise Technologies3(13 (123), 98–110. https://doi.org/10.15587/1729-4061.2023.283251
Porfírio, J. A., Carrilho, T., Felício, J. A., & Jardim, J. (2021). Leadership characteristics and digital transformation. Journal of Business Research124, 610-619. https://doi.org/10.1016/j.jbusres.2020.10.058
Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard Business Review, 92(11), 64-88. Retrieved from:  https://moodle2.units.it/pluginfile.php/727297/mod_resource/content/1/How-smart-connected-products-are-transforming-competition.pdf
Rodríguez-Abitia, G., & Correa, G. (2021). Assessing Digital Transformation in Universities. Future Internet, 13(2), 52. https://doi.org/10.3390/fi13020052.
Rumyantseva, A., Sintsova, E., Sukhacheva, V., & Tarutko, O. (2021). The Impact of Digital Transformation on the Process of Russian Enterprises Entering International Financial Markets. IV International Scientific and Practical Conference89. 1-4. https://doi.org/10.1145/3487757.3490944.
Sandkuhl, K., Shilov, N., & Smirnov, A. (2020). Facilitating Digital Transformation: Success Factors and Multi-Aspect Ontologies. International Journal of Integrated Supply Management. 13(4). 376-393. https://doi.org/10.1504/ijism.2020.10031226.
Sang, T. M. (2023). Digital transformation toward sustainable development in Vietnamese small and medium enterprises. Management & Marketing, 18(1), 459-473. https://doi.org/10.2478/mmcks-2023-0025
Tang, D. (2021). What is digital transformation? Edpacs, 64(1), 9–13. https://doi.org/10.1080/07366981.2020.1847813
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Teng, X., Wu, Z., & Yang, F. (2022). Impact of the Digital Transformation of Small- and Medium-Sized Listed Companies on Performance: Based on a Cost-Benefit Analysis Framework. Journal of Mathematics. 2022. 1504499. https://doi.org/10.1155/2022/1504499.
Tornatzky, L., & Fleischer, M. (1990). The process of technology innovation, Lexington, MA.
Tran, M. A. (2021). Foundations for Digital Transformation: The Case of Vietnam. Proceedings of the International Conference on Emerging Challenges: Business Transformation and Circular Economy (ICECH 2021). 61-72. https://doi.org/10.2991/aebmr.k.211119.007.
Verhoef, P., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research. 122. 889-901. https://doi.org/10.1016/j.jbusres.2019.09.022.
Vial, G. (2021). Understanding digital transformation: A review and a research agenda. In Managing digital transformation, 13-66. Retrieved from:   https://www.taylorfrancis.com/chapters/edit/10.4324/9781003008637-4/understanding-digital-transformation-gregory-vial
Vidas, B. M., Bogetić, S., & Bubanja, I. (2019). International standards: An important component of a successful digital transformation of the national economy. Journal of Engineering Management and Competitiveness, 9(1), 72-81. https://doi.org/10.5937/JEMC1901072V.
Weiner, B. J. (2009). A theory of organizational readiness for change. In Handbook on Implementation Science,  215-232. https://doi.org/10.4337/9781788975995.00015
Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading digital: Turning technology into business transformation. Harvard Business Press.
Xue, L., Zhang, Q., Zhang, X., & Li, C. (2022). Can Digital Transformation Promote Green Technology Innovation?. Sustainability. 14(12). 7497. https://doi.org/10.3390/su14127497.
You, Z., & Zhao, S. (2023). Enterprise Digital Transformation and Financial Risk. Advances in Economics and Management Research. 4(1). 114-128. https://doi.org/10.56028/aemr.4.1.114.2023.