Identifying factors affecting digital transformation intention in micro and small-sized enterprises: empirical evidence from Vietnam

Micro and small-sized enterprises have long been crucial in parts of emerging economies like Vietnam. However, the degree of digital transformation in these enterprises is still lower than that of large enterprises. The heavy development of the 4.0 industrial revolution requires micro and small-sized enterprises to adapt to the new environment. This study aims to identify factors affecting digital transformation intention in micro and small-sized enterprises in Vietnam based on the theory of diffusion of innovations and the technology-organization-environment framework. The survey included 996 managers and employees from micro and small-sized enterprises across five centrally governed cities in Vietnam. This study utilized the PLS-SEM model, testing both first-order and second-order models. The research results reveal that pressure on enterprises and human resources are the highest motivating factors for adopting digital transformation in micro and small-sized enterprises in Vietnam. The findings also showed the importance of natural disasters and epidemics in influencing the intention to embrace digital transformation in a country heavily affected by climate change. The results of this study add to the theoretical framework of technology, organization, and environment. They provide worthwhile evidence for the government, local authorities, and enterprise managers to develop digitalization plans.