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Factors Leading to the Digital Transformation Dead Zone in Shipping SMEs: A Dynamic Capability Theory Perspective

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  • Thanh-Nhat-Lai Nguyen

    (Faculty of Business Administration, Industrial University of Ho Chi Minh City, Ho Chi Minh City 700000, Vietnam)

  • Son-Tung Le

    (Faculty of Economics, Vietnam Maritime University, Haiphong 180000, Vietnam)

Abstract

Digital transformation (DT) has become a crucial driver of competitiveness in the shipping industry. However, many small- and medium-sized enterprises (SMEs) encounter barriers that result in digital transformation dead zones (DTDZs), where digital initiatives stagnate or fail to achieve the expected outcomes. This study investigates the key factors contributing to digital stagnation specifically within Vietnamese shipping SMEs, adopting the lens of the dynamic capabilities theory (DCT)—a framework that emphasizes firms’ abilities to sense opportunities, seize them, and reconfigure resources to maintain competitiveness in rapidly evolving environments. The DCT provides a dynamic and process-oriented perspective on how organizations adapt to technological change by building flexible and integrative capabilities. Based on quantitative data collected from 588 respondents across the Vietnamese shipping sector, the study employed structural equation modeling (SEM) to empirically assess the relationships among critical digital transformation variables. The findings reveal that inadequate sensing capabilities and a lack of data analytics are the most significant barriers, limiting firms’ ability to identify and act on digital opportunities. Additionally, limited ecosystem collaboration and supply chain fragmentation further exacerbate digital inertia. While poor reconfiguration capabilities and weak seizing capabilities also contribute to digital stagnation, their effects are comparatively weaker. The study offers theoretical contributions by extending the DCT, the resource-based view (RBV), and the ecosystem theory to the maritime sector, emphasizing the interplay between organizational, technological, and external barriers. Practical implications highlight the need for strategic investments in data analytics, ecosystem collaboration, and adaptive leadership to overcome digital stagnation.

Suggested Citation

  • Thanh-Nhat-Lai Nguyen & Son-Tung Le, 2025. "Factors Leading to the Digital Transformation Dead Zone in Shipping SMEs: A Dynamic Capability Theory Perspective," Sustainability, MDPI, vol. 17(12), pages 1-32, June.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:12:p:5553-:d:1680557
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