Unequal Gains from Digital Transformation? Evidence on Firm Performance Heterogeneity and Endogeneity in Vietnamese Enterprises

This study examines the drivers and heterogeneous impacts of platformization—a form of digital transformation involving systems such as supply chain management, product data management, and integrated information technology solutions—on firm performance in a developing economy. Drawing on the Resource-Based View and Dynamic Capabilities View, we analyze data from 5542 Vietnamese firms across four sectors using an endogenous switching regression model, complemented by quantile regression. Platformization decisions are shaped by firm resources and managerial expectations, with strong sectoral variation. In manufacturing and construction, larger assets and a lower leverage promote adoption, while, in wholesale and retail, workforce size and perceived competitiveness are key drivers. Platformization enhances the returns to assets and cash flow—especially among high-performing firms—while reducing the negative effects of high debt and geographic disadvantages. The findings offer three practical implications: (1) prioritize digital adoption in asset-heavy sectors when financial conditions are stable; (2) invest in coordination- and customer-focused platforms in labor-intensive sectors; and (3) use digital tools to convert liquidity into performance gains. These insights support inclusive digitalization policies and contribute to Sustainable Development Goals 8 and 9 by linking digital transformation to resilience, adaptability, and innovation-led growth in transitional economies.