IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v15y2022i1p21-d719745.html
   My bibliography  Save this article

The Impact of Digital Transformation on Performance: Evidence from Vietnamese Commercial Banks

Author

Listed:
  • Trang Doan Do

    (Faculty of Economics, Binh Duong University, No. 504 Binh Duong Boulevard, Hiep Thanh Ward, Thu Dau Mot City 820000, Vietnam)

  • Ha An Thi Pham

    (Faculty of Finance and Banking, Van Lang University, 69/68 Dang Thuy Tram Street, Ward 13, Binh Thanh District, Ho Chi Minh City 700000, Vietnam)

  • Eleftherios I. Thalassinos

    (Faculty of Maritime and Industrial Studies, University of Piraeus, 185-33 Piraeus, Greece and Faculty of Economics, Management and Accountancy, University of Malta, 2080 Msida, Malta)

  • Hoang Anh Le

    (Institute for Research Science and Banking Technology, Banking University HCMC, No. 36 Ton That Dam Street, Nguyen Thai Binh Ward, District 1, Ho Chi Minh City 700000, Vietnam)

Abstract

The role of digital transformation in creating value for commercial banks has been interesting to researchers for a long time. While many commercial banks have significantly investigated digital transformation, researchers and managers have still met many difficulties examining the distribution of digital transformation to business performance. This paper aims to evaluate the impact of digital transformation on Vietnamese commercial banks’ performance by different sizes, from there proposing policy implications of digital transformation to improve the banking performance. To achieve this goal, we used a quantitative research method. Specifically, we applied the GMM system (SGMM) of Blundell and Bond for the data of 13 joint-stock commercial banks in Vietnam in the period from 2011 to 2019. Then Bayesian analysis is performed to test the robustness of the models estimated by the SGMM method. The result shows that the digital transformation has a positive impact on the performance of Vietnamese commercial banks. Besides, we also find that the larger the banks, the greater the positive impact of digital transformation on bank performance. Therefore, the efficiency of digital transformation depends on a bank scale.

Suggested Citation

  • Trang Doan Do & Ha An Thi Pham & Eleftherios I. Thalassinos & Hoang Anh Le, 2022. "The Impact of Digital Transformation on Performance: Evidence from Vietnamese Commercial Banks," JRFM, MDPI, vol. 15(1), pages 1-15, January.
    • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:1:p:21-:d:719745
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/15/1/21/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/15/1/21/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bresciani, Stefano & Ferraris, Alberto & Del Giudice, Manlio, 2018. "The management of organizational ambidexterity through alliances in a new context of analysis: Internet of Things (IoT) smart city projects," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 331-338.
    2. Adnan Kasman, 2002. "Cost Efficiency, Scale Economies, and Technological Progress in Turkish Banking," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 2(1), pages 1-20.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Assefa Belay, 2024. "Determinants of Bank Profitability on the Example of a Commercial Bank in Ethiopia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 121-138.
    2. Sylwia Klus & Artur Stefanski & Zuzanna Urbanowicz & Leszek Wanat, 2024. "Capital Adequacy Standards on the Case of Selected Banks in Poland Under Economic Uncertainty," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 517-530.
    3. Wu, Wenyang & Tang, Shenfeng, 2024. "Bank credit in the digital age: Expansion or excessive expansion?," Finance Research Letters, Elsevier, vol. 70(C).
    4. Zbigniew Ciekanowski & Leszek Elak & Aneta Chrzaszcz & Wieslawa Zaloga & Stanislaw Marciniak, 2024. "Digitalization as an Essential Area of Security and Management in Modern Organizations," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 827-837.
    5. Piotr Rubaj, 2023. "Emerging Markets as Key Drivers of the Global Economy," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 431-445.
    6. Yujie Zhang, 2024. "Exploring the Nexus: IT Capabilities, Digital Transformation, and Innovation in Traditional Manufacturing," International Journal of Science and Business, IJSAB International, vol. 39(1), pages 22-45.
    7. Riris Shanti & Hermanto Siregar & Nimmi Zulbainarni & Tony, 2023. "Role of Digital Transformation on Digital Business Model Banks," Sustainability, MDPI, vol. 15(23), pages 1-25, November.
    8. Khattak, Mudeer Ahmed & Ali, Mohsin & Azmi, Wajahat & Rizvi, Syed Aun R., 2023. "Digital transformation, diversification and stability: What do we know about banks?," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 122-132.
    9. Zbigniew Ciekanowski & Julia Nowicka & Slawomir Zurawski & Artur Czech & Malgorzata Zdunek, 2023. "Crisis Management and Crisis Situation in the Organization," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 339-353.
    10. Mishra, Deepa Bhatt & Haider, Imran & Gunasekaran, Angappa & Sakib, Md. Nazmus & Malik, Nishtha & Rana, Nripendra P., 2023. "“Better together”: Right blend of business strategy and digital transformation strategies," International Journal of Production Economics, Elsevier, vol. 266(C).
    11. Piotr Ladny, 2023. "Cyber Protection Activities for Citizens in Poland Compared to the EU," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 208-223.
    12. Daniel Szostak, 2024. "Innovative E-Services in the Hotel Industry: Exploring Modern Business Practices," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 1402-1411.
    13. Dominika Krol-Smetak & Ireneusz Miciula & Apoloniusz Kurylczyk & Malgorzata Chojnacka & Karolina Rogowska & Monika Rozycka, 2023. "Analysis of the Impact of Implemented IT Systems on the Economic Efficiency of Enterprises in the Construction Industry in the Context of Sustainable Development in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 901-915.
    14. Kayenaat Bahl & Ravi Kiran & Anupam Sharma, 2023. "Scaling Up Banking Performance for the Realisation of Specific Sustainable Development Goals: The Interplay of Digitalisation and Training in the Transformation Journey," Sustainability, MDPI, vol. 15(18), pages 1-22, September.
    15. Wenjun Li & Mu Zhang, 2024. "Digital Transformation, Absorptive Capacity and Enterprise ESG Performance: A Case Study of Strategic Emerging Industries," Sustainability, MDPI, vol. 16(12), pages 1-18, June.
    16. Marek Ciekanowski & Slawomir Żurawski & Zbigniew Ciekanowski & Yury Pauliuchuk & Jan Boguski, 2023. "The Impact of Digitalization and the COVID-19 Pandemic on Information Security Management in the Enterprise," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 750-763.
    17. Ekaterina A. Potapova & Maxim O. Iskoskov & Natalia V. Mukhanova, 2022. "The Impact of Digitalization on Performance Indicators of Russian Commercial Banks in 2021," JRFM, MDPI, vol. 15(10), pages 1-20, October.
    18. Maria Orero-Blat & Daniel Palacios-Marqués & Antonio Luis Leal-Rodríguez & Alberto Ferraris, 2025. "Beyond digital transformation: a multi-mixed methods study on big data analytics capabilities and innovation in enhancing organizational performance," Review of Managerial Science, Springer, vol. 19(2), pages 649-685, February.
    19. Fan Yang & Tajul Ariffin Masron, 2024. "The effect of digital transformation on the cost of China commercial banks," SN Business & Economics, Springer, vol. 4(5), pages 1-21, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shan, Wei & Qiao, Tong & Zhang, Mingli, 2020. "Getting more resources for better performance: The effect of user-owned resources on the value of user-generated content," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    2. Dániel Holló & Márton Nagy, 2006. "Bank Efficiency in the Enlarged European Union," BIS Papers chapters, in: Bank for International Settlements (ed.), The banking system in emerging economies: how much progress has been made?, volume 28, pages 217-35, Bank for International Settlements.
    3. Papa, Armando & Mital, Monika & Pisano, Paola & Del Giudice, Manlio, 2020. "E-health and wellbeing monitoring using smart healthcare devices: An empirical investigation," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    4. Maurizio Dallocchio & Marcello Lambri & Emiliano Sironi & Emanuele Teti, 2024. "The Role of Digitalization in Cross-Border E-Commerce Performance of Italian SMEs," Sustainability, MDPI, vol. 16(2), pages 1-17, January.
    5. Teng, Yuanyang & Zheng, Jianzhuang & Li, Yicun & Wu, Dong, 2024. "Optimizing digital transformation paths for industrial clusters: Insights from a simulation," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    6. Caputo, Andrea & Pizzi, Simone & Pellegrini, Massimiliano M. & Dabić, Marina, 2021. "Digitalization and business models: Where are we going? A science map of the field," Journal of Business Research, Elsevier, vol. 123(C), pages 489-501.
    7. Bencsik, Barbara & Palmié, Maximilian & Parida, Vinit & Wincent, Joakim & Gassmann, Oliver, 2023. "Business models for digital sustainability: Framework, microfoundations of value capture, and empirical evidence from 130 smart city services," Journal of Business Research, Elsevier, vol. 160(C).
    8. Jain, Geetika & Paul, Justin & Shrivastava, Archana, 2021. "Hyper-personalization, co-creation, digital clienteling and transformation," Journal of Business Research, Elsevier, vol. 124(C), pages 12-23.
    9. Farrag Noha & Lang Günter, 2015. "Is Bigger Better for Egyptian Banks? An Efficiency Analysis of the Egyptian Banks during a Period of Reform 2000–2006," Review of Middle East Economics and Finance, De Gruyter, vol. 11(3), pages 225-248, December.
    10. Santoro, Gabriele & Bresciani, Stefano & Papa, Armando, 2020. "Collaborative modes with Cultural and Creative Industries and innovation performance: The moderating role of heterogeneous sources of knowledge and absorptive capacity," Technovation, Elsevier, vol. 92.
    11. Labarthe, Pierre & Coléno, François & Enjalbert, Jérôme & Fugeray-Scarbel, Aline & Hannachi, Mourad & Lemarié, Stéphane, 2021. "Exploration, exploitation and environmental innovation in agriculture. The case of variety mixture in France and Denmark," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    12. Forliano, Canio & Bullini Orlandi, Ludovico & Zardini, Alessandro & Rossignoli, Cecilia, 2023. "Technological orientation and organizational resilience to Covid-19: The mediating role of strategy's digital maturity," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    13. Bożena Gajdzik & Marcin Awdziej & Magdalena Jaciow & Ilona Lipowska & Marcin Lipowski & Grzegorz Szojda & Jolanta Tkaczyk & Radosław Wolniak & Robert Wolny & Wieslaw Wes Grebski, 2024. "Encouraging Residents to Save Energy by Using Smart Transportation: Incorporating the Propensity to Save Energy into the UTAUT Model," Energies, MDPI, vol. 17(21), pages 1-31, October.
    14. Di Vaio, Assunta & Palladino, Rosa & Pezzi, Alberto & Kalisz, David E., 2021. "The role of digital innovation in knowledge management systems: A systematic literature review," Journal of Business Research, Elsevier, vol. 123(C), pages 220-231.
    15. Noha Farrag & Guenter Lang, 2012. "The Egyptian Banking Sector: Assessing Efficiency Using a Stochastic Frontier Cost Function," Working Papers 33, The German University in Cairo, Faculty of Management Technology.
    16. Singh, Shiwangi & Sharma, Meenakshi & Dhir, Sanjay, 2021. "Modeling the effects of digital transformation in Indian manufacturing industry," Technology in Society, Elsevier, vol. 67(C).
    17. Christofi, Michael & Vrontis, Demetris & Thrassou, Alkis & Shams, S.M. Riad, 2019. "Triggering technological innovation through cross-border mergers and acquisitions: A micro-foundational perspective," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 148-166.
    18. Nuri Altintas & Alessandra Ferrari & Claudia Girardone, 2022. "Do financial reforms always improve banks efficiency and competition? A long-term analysis of Turkey’s experience," Journal of Banking Regulation, Palgrave Macmillan, vol. 23(4), pages 458-469, December.
    19. Rialti, Riccardo & Zollo, Lamberto & Ferraris, Alberto & Alon, Ilan, 2019. "Big data analytics capabilities and performance: Evidence from a moderated multi-mediation model," Technological Forecasting and Social Change, Elsevier, vol. 149(C).
    20. Faraji Dizaji , Sajjad, 2013. "Financial Sanctions and Iranian Banks' Performance," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 8(4), pages 99-136, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:15:y:2022:i:1:p:21-:d:719745. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.