Cultural drivers of sustainable development in Vietnam: the moderating role of digital transformation

This study examines how cultural institutional systems, cultural and social capital, and community engagement are associated with perceived outcomes of local sustainable development in Vietnam. It further investigates digital transformation as both a direct driver of these perceived outcomes and a moderating factor. Using institutional, cultural, social capital, and digital transformation theories, the study develops an integrated model tested with survey data from 750 respondents. Reliability and validity are assessed with Cronbach’s Alpha and confirmatory factor analysis. Pearson correlation, hierarchical regression, interaction, and simple-slope analyses test effects. Cultural institutional systems, social capital, community engagement, and digital transformation are linked to perceived local sustainable development, with cultural institutional systems showing the strongest. Digital transformation enhances these positive links, especially the role of cultural and social capital. The study combines cultural, institutional, community, and digital perspectives within a single framework. Its main contribution is viewing digital transformation as an enabling institutional capability, not just a technological factor in sustainable development. Findings show digital transformation enhances how cultural institutions, social capital, and community engagement lead to perceived sustainable outcomes, especially for cultural and social capital. Evidence from an emerging economy emphasizes the need for effective cultural governance, community involvement, and inclusive digital services to promote sustainable local development.