Unveiling how business process management capabilities foster dynamic decision-making for effectiveness of sustainable digital transformation

Purpose This research aims at investigating how business process management capabilities (BPMC) impact the effectiveness of sustainable digital transformation (ESDT). Furthermore, it delves into the mediation of dynamic decision-making (DDM) in the relationship between BPMC and ESDT. Design/methodology/approach This research employed the hypothetico-deductive technique. The statistical database was generated from sample of 712 respondents from small and medium companies (SMEs) in Vietnam, utilizing convenience and snowball sampling methods. The two-step process utilizing structural equation modeling, supported by SmartPLS version 4.1.0.9 and AMOS 28, was employed to assess the measurement model, while SmartPLS version 4.1.0.9 was used to evaluate the structural model. Findings The results of the analysis emphasize significant and positive correlations between the proposed constructs related to significance and effect size. The statistical results indicated that BPMC had a significant and beneficial effect on ESDT. This relationship was partially mediated by DMM. Practical implications The salient point emphasized that practitioners should prioritize enhancing focus on BPMC and DDM, as this would significantly facilitate more comprehensive solutions, enabling SMEs to achieve optimal success in sustainable digital transformation. Policymakers and government influencers are urged to concentrate on innovative attributes and ensure a conducive environment for the implementation of innovation by enacting regulations that promote the application of digital technology. Originality/value The findings of this study will broaden scholars’ understanding of the influence of BPMC on ESDT. The originality of the research is to provide research directions for advancing studies on the role of DDM in the context of sustainable digital transformation.