Propelling sustainable competitive performance in the digital age: the nexus of dynamic managerial capabilities, stakeholder engagement, and corporate digital responsibility

Purpose The accelerating digitalization of business environments presents significant opportunities and complex ethical challenges, particularly in emerging economies confronting heightened cybersecurity risks and evolving regulatory frameworks. This study aims to address how dynamic managerial capabilities influence corporate digital responsibility (CDR) and sustainable competitive performance in Vietnamese enterprises. Crucially, the research model positions stakeholder engagement as a moderating variable, examining its role in strengthening the relationship between managerial capabilities and CDR adoption. Design/methodology/approach A quantitative research design was used, utilizing survey data collected from 428 Vietnamese firms. Structural equation modeling was used to test the hypothesized relationships among dynamic managerial capabilities, stakeholder engagement, CDR and sustainable performance. Findings The analysis reveals that all three dimensions of dynamic managerial capabilities significantly foster CDR engagement. While stakeholder engagement directly enhances CDR, it also negatively moderates the relationship between managerial capabilities and CDR, suggesting that higher stakeholder involvement may attenuate the direct influence of managerial capabilities. Furthermore, CDR is shown to mediate the effect of managerial capabilities on sustainable competitive performance, highlighting its pivotal role in achieving organizational outcomes. Originality/value By conceptualizing CDR as a strategic leadership outcome shaped by both internal managerial capabilities and external stakeholder engagement, this research advances theoretical understanding and provides actionable insights for embedding ethical digital practices into organizational strategy, particularly in the context of emerging markets.