Enhancing Innovation Capacity through Digital Transformation: Challenges and Opportunities for Vietnamese IT Companies

This study examines the role of digital transformation in enhancing innovation capacity among Vietnamese IT companies. Through a mixed-methods approach, including surveys of 171 IT firms and in-depth interviews with 10 industry experts, we investigate the challenges and opportunities presented by digital transformation initiatives. Our findings reveal that while digital transformation significantly contributes to innovation capacity, Vietnamese IT companies face obstacles such as skill gaps, resistance to change, and limited financial resources. However, opportunities arise from improved data analytics, streamlined processes, and new business models enabled by digital technologies. We propose a framework for IT companies to strategically approach digital transformation to boost their innovation capacity. This research contributes to the understanding of innovation dynamics in emerging markets and provides practical implications for managers and policymakers in the IT sector.