Technological adaptation and ethnic entrepreneurship: A cluster-based study in Northern Vietnam

This study explores the heterogeneous patterns of technological adaptation among ethnic minority entrepreneurs in Northern Vietnam. Using survey data from 230 ethnic businesses across four provinces, we adopt a bagged clustering algorithm to classify entrepreneurs into distinct groups based on their digital literacy, technology use, and attitudes toward digital transformation. The analysis reveals three clusters: (1) Digitally skilled but cautious users, who possess digital competence but underutilize technology in business operations; (2) Low digital engagement, characterized by limited skills and minimal digital integration; and (3) Tech-driven practitioners, who actively use digital tools despite lower formal education. Our findings thus highlight the need for cluster-specific policies that recognize the diversity among ethnic entrepreneurs, recommending tailored support such as digital literacy training for low-engagement groups, business application coaching for digitally skilled but cautious users, and scale-up assistance for tech-driven practitioners.