IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i9p7093-d1131037.html
   My bibliography  Save this article

Exploring the Determinants of Digital Transformation Adoption for SMEs in an Emerging Economy

Author

Listed:
  • Viet Anh Ta

    (Ph.D. Program in Business and Operations Management, Chang Jung Christian University, Tainan 71101, Taiwan
    Department of Economics, Thai Nguyen University of Economics and Business Administration, Thai Nguyen 24100, Vietnam)

  • Chieh-Yu Lin

    (Department of International Business, Chang Jung Christian University, Tainan 71101, Taiwan)

Abstract

In the fourth industrial revolution age, digital transformation is crucial to the sustainable development of small- and medium-sized businesses (SMEs). This study suggests a hierarchical model based on the Technology–Organization–Environment (TOE) model with three main dimensions and nine sub-dimensions for SMEs that implemented digital transformation in the emerging economy. The fuzzy analytic hierarchical process methodology (Fuzzy AHP) was used to explore and rank determinants of the digital transformation adoption for SMEs. Data were collected by the questionnaires from 72 respondents, who were the leaders of SMEs in Vietnam. The results revealed that the environmental factor was ranked the most important factor in the pairwise comparisons of the hierarchical structure, and the sub-dimension of the customer experience was at the highest ranking of the relative pairwise comparisons of the digital transformation adoption for SMEs, followed by technological compatibility, government support, organizational support, and human resources. This research makes contributions to the topic of digital transformation from both theoretical and practical implications. The result stresses the critical significance of environmental factors in the successful adoption of digital technologies in SMEs, which adds to the perspective in the context of a growing nation.

Suggested Citation

  • Viet Anh Ta & Chieh-Yu Lin, 2023. "Exploring the Determinants of Digital Transformation Adoption for SMEs in an Emerging Economy," Sustainability, MDPI, vol. 15(9), pages 1-13, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:9:p:7093-:d:1131037
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/9/7093/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/9/7093/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Eller, Robert & Alford, Philip & Kallmünzer, Andreas & Peters, Mike, 2020. "Antecedents, consequences, and challenges of small and medium-sized enterprise digitalization," Journal of Business Research, Elsevier, vol. 112(C), pages 119-127.
    2. Wafa AlNasrallah & Farida Saleem, 2022. "Determinants of the Digitalization of Accounting in an Emerging Market: The Roles of Organizational Support and Job Relevance," Sustainability, MDPI, vol. 14(11), pages 1-15, May.
    3. Juanita Álvarez Jaramillo & Jhon Wilder Zartha Sossa & Gina Lía Orozco Mendoza, 2019. "Barriers to sustainability for small and medium enterprises in the framework of sustainable development—Literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 28(4), pages 512-524, May.
    4. Premkumar, G. & Roberts, Margaret, 1999. "Adoption of new information technologies in rural small businesses," Omega, Elsevier, vol. 27(4), pages 467-484, August.
    5. Gary C. Moore & Izak Benbasat, 1991. "Development of an Instrument to Measure the Perceptions of Adopting an Information Technology Innovation," Information Systems Research, INFORMS, vol. 2(3), pages 192-222, September.
    6. Wang, Yi-Shun & Li, Hsien-Ta & Li, Ci-Rong & Zhang, Ding-Zhong, 2016. "Factors affecting hotels' adoption of mobile reservation systems: A technology-organization-environment framework," Tourism Management, Elsevier, vol. 53(C), pages 163-172.
    7. Schwarzmüller, Tanja & Brosi, Prisca & Duman, Denis & Welpe, Isabell M., 2018. "How Does the Digital Transformation Affect Organizations? Key Themes of Change in Work Design and Leadership," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 29(2), pages 114-138.
    8. Ta-Ching Liang & Szu-Hsien Peng, 2017. "Using Analytic Hierarchy Process to Examine the Success Factors of Autonomous Landscape Development in Rural Communities," Sustainability, MDPI, vol. 9(5), pages 1-17, May.
    9. Iveta Šimberová & Antonín Korauš & David Schüller & Lenka Širáňová & Jarmila Straková & Jan Váchal, 2022. "Threats and Opportunities in Digital Transformation in SMEs from the Perspective of Sustainability: A Case Study in the Czech Republic," Sustainability, MDPI, vol. 14(6), pages 1-17, March.
    10. Chun-Liang Chen & Yao-Chin Lin & Wei-Hung Chen & Cheng-Fu Chao & Henry Pandia, 2021. "Role of Government to Enhance Digital Transformation in Small Service Business," Sustainability, MDPI, vol. 13(3), pages 1-24, January.
    11. Saaty, Thomas L., 1994. "Homogeneity and clustering in AHP ensures the validity of the scale," European Journal of Operational Research, Elsevier, vol. 72(3), pages 598-601, February.
    12. Henrik Hansen & John Rand & Finn Tarp, 2009. "Enterprise Growth and Survival in Vietnam: Does Government Support Matter?," Journal of Development Studies, Taylor & Francis Journals, vol. 45(7), pages 1048-1069, August.
    13. Simon Feeny & Mark Rogers, 2003. "Innovation and Performance: Benchmarking Australian Firms," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 36(3), pages 253-264, September.
    14. Martín-de Castro, Gregorio & Delgado-Verde, Miriam & Navas-López, José E. & Cruz-González, Jorge, 2013. "The moderating role of innovation culture in the relationship between knowledge assets and product innovation," Technological Forecasting and Social Change, Elsevier, vol. 80(2), pages 351-363.
    15. Bansal, Anjali & Panchal, Tanvi & Jabeen, Fauzia & Mangla, Sachin Kumar & Singh, Gurmeet, 2023. "A study of human resource digital transformation (HRDT): A phenomenon of innovation capability led by digital and individual factors," Journal of Business Research, Elsevier, vol. 157(C).
    16. Adnan Mustafa AlBar & Md. Rakibul Hoque, 2019. "Factors affecting the adoption of information and communication technology in small and medium enterprises: a perspective from rural Saudi Arabia," Information Technology for Development, Taylor & Francis Journals, vol. 25(4), pages 715-738, October.
    17. Chang, Da-Yong, 1996. "Applications of the extent analysis method on fuzzy AHP," European Journal of Operational Research, Elsevier, vol. 95(3), pages 649-655, December.
    18. Calabrese, Armando & Costa, Roberta & Levialdi, Nathan & Menichini, Tamara, 2019. "Integrating sustainability into strategic decision-making: A fuzzy AHP method for the selection of relevant sustainability issues," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 155-168.
    19. Matarazzo, Michela & Penco, Lara & Profumo, Giorgia & Quaglia, Roberto, 2021. "Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective," Journal of Business Research, Elsevier, vol. 123(C), pages 642-656.
    20. Philbin, Simon & Viswanathan, Radhakrishnan & Telukdarie, Arnesh, 2022. "Understanding how digital transformation can enable SMEs to achieve sustainable development: A systematic literature review," Small Business International Review, Asociación Española de Contabilidad y Administración de Empresas - AECA, vol. 6(1), pages 473-473, May.
    21. Jaklič, Jurij & Grublješič, Tanja & Popovič, Aleš, 2018. "The role of compatibility in predicting business intelligence and analytics use intentions," International Journal of Information Management, Elsevier, vol. 43(C), pages 305-318.
    22. Doh, Soogwan & Kim, Byungkyu, 2014. "Government support for SME innovations in the regional industries: The case of government financial support program in South Korea," Research Policy, Elsevier, vol. 43(9), pages 1557-1569.
    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. Ali Bux & Yongyue Zhu & Sharmila Devi, 2025. "Enhancing Organizational Agility Through Knowledge Sharing and Open Innovation: The Role of Transformational Leadership in Digital Transformation," Sustainability, MDPI, vol. 17(15), pages 1-20, July.
    2. Nor Azian Abdul Rahman & Zulhasni Abdul Rahim, 2024. "Exploring the Drivers, Challenges, and Opportunities of Supply Chain Technology Adoption for Small and Medium Enterprises (SMEs) in Malaysia," Information Management and Business Review, AMH International, vol. 16(3), pages 125-134.
    3. Ni Luh Putu Indiani & J. S. Keshminder & Nyoman Indra Wiratama & Genijayendra Sahya Amertha, 2025. "Unlocking e-commerce potential in SMEs: an integrative framework for adoption in emerging markets," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-16, December.
    4. Qigan Shao & Changchang Jiang & James J. H. Liou & Peiyao Su & Ying Yuan & Zhu Dan, 2025. "Exploring the Influencing Factors of Digital Transformation: Empirical Results From SMEs in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(4), pages 2364-2380, June.
    5. Liuxin Chen & Fan Fu & Hao Xu, 2025. "Unveiling How the Digital Economy Empowers Green Productivity: Machine Learning and FsQCA Methods," Sustainability, MDPI, vol. 17(17), pages 1-23, September.
    6. Isaac Kofi Mensah & Muhammad Khalil Khan & Cornelius B. Pratt, 2025. "The Moderating Influence of Government Support as the Major Environmental Context on SMEs’ Adoption of Social Media Systems—from the Technology-Organization-Environment Perspective," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(3), pages 12567-12594, September.
    7. Pham Quang Huy & Vu Kien Phuc, 2025. "Does effectiveness of digital accounting system intensify sustainable business model innovation with mediating role of digital business ecosystem?," Journal of Innovation and Entrepreneurship, Springer, vol. 14(1), pages 1-41, December.
    8. Hery Syahrial & Linda Lores & Dahrul Siregar & Salma Nazwa, 2024. "Crucial Factors Influencing the Success of SMEs in the Digital Transformation Era," Information Management and Business Review, AMH International, vol. 16(3), pages 181-187.

    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. Xuejun Jin & Xiao Pan, 2023. "Government Attention, Market Competition and Firm Digital Transformation," Sustainability, MDPI, vol. 15(11), pages 1-27, June.
    2. Yuchong Hu & Yifan Pan & Miao Yu & Peishen Chen, 2024. "Navigating Digital Transformation and Knowledge Structures: Insights for Small and Medium-Sized Enterprises," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 16311-16344, December.
    3. Muhammad Bilal & Zhao Xicang & Wu Jiying & Jan Muhammad Sohu & Sadaf Akhtar & Muhammad Iatzaz Ul Hassan, 2025. "Digital Transformation and SME Innovation: A Comprehensive Analysis of Mediating and Moderating Effects," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 1153-1182, March.
    4. Gaffar Hafiz Sagala & Dóra Őri, 2024. "Toward SMEs digital transformation success: a systematic literature review," Information Systems and e-Business Management, Springer, vol. 22(4), pages 667-719, December.
    5. Abhishek Tripathi, 2024. "Mapping the digitalization in SMEs of Middle East region: trends and insights from bibliometric analysis," Future Business Journal, Springer, vol. 10(1), pages 1-16, December.
    6. Srivastava, Deepak Kumar & Kumar, Vikas & Ekren, Banu Yetkin & Upadhyay, Arvind & Tyagi, Mrinal & Kumari, Archana, 2022. "Adopting Industry 4.0 by leveraging organisational factors," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    7. Yangyang Zheng & Feng Liao & Mengling Tian, 2025. "Examining the factors influencing the digital transformation of new agricultural operating entities: insights from Zhejiang, China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-14, December.
    8. Feimei Liao & Yaoyao Hu & Yinghao Sun & Songqin Ye, 2024. "Does digital empowerment affect corporate green investment efficiency?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 23085-23111, September.
    9. Bisma Mannan & Abid Haleem, 2017. "Understanding major dimensions and determinants that help in diffusion & adoption of product innovation: using AHP approach," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-24, December.
    10. Adamantia Pateli & Naoum Mylonas & Aggeliki Spyrou, 2020. "Organizational Adoption of Social Media in the Hospitality Industry: An Integrated Approach Based on DIT and TOE Frameworks," Sustainability, MDPI, vol. 12(17), pages 1-20, September.
    11. Manish Mohan Baral & Amitabh Verma, 2021. "Cloud Computing Adoption for Healthcare: An Empirical Study Using SEM Approach," FIIB Business Review, , vol. 10(3), pages 255-275, September.
    12. Gupta, Himanshu & Barua, Mukesh Kumar, 2016. "Identifying enablers of technological innovation for Indian MSMEs using best–worst multi criteria decision making method," Technological Forecasting and Social Change, Elsevier, vol. 107(C), pages 69-79.
    13. María Carmen Carnero, 2020. "Fuzzy Multicriteria Models for Decision Making in Gamification," Mathematics, MDPI, vol. 8(5), pages 1-23, May.
    14. Merín-Rodrigáñez, Joan & Dasí, Àngels & Alegre, Joaquín, 2024. "Digital transformation and firm performance in innovative SMEs: The mediating role of business model innovation," Technovation, Elsevier, vol. 134(C).
    15. Wu, Kai & Lu, Yufei, 2025. "The digital dilemma: Corporate digital transformation and default risk," Journal of Financial Stability, Elsevier, vol. 77(C).
    16. Yang Songling & Muhammad Ishtiaq & Muhammad Anwar & Hamid Ahmed, 2018. "The Role of Government Support in Sustainable Competitive Position and Firm Performance," Sustainability, MDPI, vol. 10(10), pages 1-17, September.
    17. Ilić, Damir & Milošević, Isidora & Ilić-Kosanović, Tatjana, 2022. "Application of Unmanned Aircraft Systems for smart city transformation: Case study Belgrade," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    18. Raushan Makasheva & Leila Tussupova & Nurlan Apakhayev & Biyakhmet Abdulaziz & Sandugash Khushkeldiyeva, 2024. "Integration of digital transformation and the concept of sustainable development in small and medium-sized businesses," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(2), pages 27-48.
    19. Muhammad Zada & Shagufta Zada & Mudassar Ali & Yongjun Zhang & Abida Begum & Heesup Han & Antonio Ariza-Montes & Alejandro Vega-Muñoz, 2021. "Development of Local Economy through the Strengthening of Small-Medium-Sized Forest Enterprises in KPK, Pakistan," Sustainability, MDPI, vol. 13(19), pages 1-17, September.
    20. Hery Syahrial & Linda Lores & Dahrul Siregar & Salma Nazwa, 2024. "Crucial Factors Influencing the Success of SMEs in the Digital Transformation Era," Information Management and Business Review, AMH International, vol. 16(3), pages 181-187.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:jsusta:v:15:y:2023:i:9:p:7093-:d:1131037. 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.