A strategy tripod perspective on digitalization for sustainable development: a case of micro, small, and medium-sized enterprises in Vietnam

Abstract

AbstractIn the ever-changing global environment, Micro, Small, and Medium Enterprises (MSMEs) face unique and formidable challenges, particularly in the wake of the pandemic. With their dependence on personal interactions and limited resources, along with a lack of digitalization, technology adoption, and online presence, MSMEs are at a high risk of survival. To overcome these operational and supply chain obstacles, MSMEs must embrace digitalization. However, weak institutional foundations, industry-specific issues, and resource-based costs in developing countries, particularly Vietnam, have hindered their adoption. This research study aims to examine the intricate relationship between strategy tripods, digitalization, and firm performance in the context of Vietnamese MSMEs. This study employs structural equation modeling to rigorously test the proposed hypotheses, drawing upon a researcher-designed survey administered to 382 MSMEs. The findings provide valuable insights into the barriers that hinder digitalization adoption in developing countries, emphasizing the crucial roles of government support, knowledge creation and absorption, and competitive intensity. Moreover, the study uncovers the positive impact of firm engagement in digitalization on post-digitalization performance. By contributing to a deeper understanding of the implications of strategy tripods and digitalization for MSME performance in Vietnam, this research offers actionable insights for policymakers and facilitates the development of effective training programs tailored towards digitalization, ultimately fostering sustainable outcomes.RÉSUMÉDans un environnement mondial en constante évolution, les micro, petites et moyennes entreprises (MPME) sont confrontées à des défis uniques et redoutables, en particulier dans le sillage de la pandémie. En raison de leur dépendance à l’égard des interactions personnelles et de leurs ressources limitées, ainsi que du manque de numérisation, d’adoption des technologies et de présence en ligne, les MPME courent un risque élevé de survie. Afin de surmonter ces obstacles opérationnels et liés à la chaîne d’approvisionnement, les MPME doivent adopter la numérisation. Cependant la faiblesse des bases institutionnelles, les problèmes spécifiques à l’industrie et les coûts liés aux ressources dans les pays en développement, en particulier au Viêt Nam, ont entravé son adoption. Cette étude a pour objectif d’examiner la relation complexe entre les trépieds de la stratégie, la numérisation et la performance des entreprises dans le contexte des MPME vietnamiennes. Elle utilise la modélisation par équation structurelle pour tester rigoureusement les hypothèses proposées, en s’appuyant sur une enquête conçue par les chercheurs et administrée à 382 MPME. Les résultats fournissent des indications précieuses sur les obstacles qui entravent l’adoption de la numérisation dans les pays en développement, en mettant l’accent sur les rôles cruciaux du soutien gouvernemental, la création et l’absorption des connaissances, et l’intensité de la concurrence. En outre, l’étude met en évidence l’impact positif de l’engagement de l’entreprise dans la numérisation sur la performance post-numérisation. En contribuant à une meilleure compréhension des trépieds de la stratégie et de la numérisation pour les performances des MPME au Viêt Nam, cette recherche offre des perspectives exploitables aux décideurs politiques et facilite l’élaboration de programmes de formation efficaces adaptés à la numérisation, favorisant en fin de compte des résultats durables.Keywords: Digitalizationstrategy tripodsmicrosmall and medium enterprisesVietnamMOTS-CLÉS: Numérisationtrépieds de la stratégiemicropetites et moyennes entreprisesviêt nam AcknowledgementThe authors would like to thank the reviewers for their guidance and the Editor-in-Chief for considering this paper. We acknowledge that this research is partly funded by University of Economics and Law, Vietnam National University Ho Chi Minh City/VNU-HCM and University of Economics Ho Chi Minh City under the project KX04.22/21-25.Disclosure statementThe author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.Additional informationFundingThe author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: This research is funded by University of Economics and Law, Vietnam National University Ho Chi Minh City.Notes on contributorsHuy-Cuong Vo ThaiHuy-Cuong Vo Thai is a lecturer at the Faculty of Business Administration, University of Finance - Marketing, Vietnam. His research focuses on strategic management, business growth strategy, and planning strategy, particularly in today’s digital, mobile, network, and sharing economy.Trinh Hoang Hong HueTrinh Hoang Hong Hue is a lecturer and Vice-Dean in charge at the Faculty of Economics, University of Economic and Laws; Vietnam National University, Hochiminh city, Vietnam. Her interested research fields are Sustainable development, Public Policy, Public Economics, and Innovation Management.My-Linh TranMy-Linh Tran is a lecturer at the Faculty of International Economic Relations, University of Economics and Law; Vietnam National University, Hochiminh city, Vietnam. Her research focuses on entrepreneurship and business management.Xuan Vinh VoXuan-Vinh Vo is a Professor and Dean of the Institute of Business Research, University of Economics Ho Chi Minh City. His research areas of interest include Macro economics, Banking and Finance Management, Energy Economics, and Finance Energy Policy.