Exploring the essence and factors influencing digital transformation in small and medium-sized enterprises

Abstract

Digital transformation has become an inevitable trend in the socio-economic sphere. However, research topics concerning the conceptualization and the determinants of digital transformation in Vietnamese small and medium-sized enterprises (SMEs) still reflect a wide range of perspectives and approaches. Through the practical cases of SMEs in Quang Tri Province and Hue City, this study seeks to explore the essence of digital transformation as well as the factors influencing digital transformation in SMEs. Qualitative data were collected through interviews with 24 experts from various fields. The thematic analysis results indicate that the essence of digital transformation comprises cognitive transformation, technological transformation, and transformation of processes and business models. In addition, three thematic groups of factors influencing digital transformation were identified, including technological context (existing information technology infrastructure, digital transformation advantages, and digital technologies); organizational context (strategy, digital human resources, managerial support, and transformation costs); and environmental context (competitive pressure, government policies, and customer behavior). Based on these findings, several recommendations are proposed to strengthen digital transformation in SMEs in the near future.