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Affecting factors to the decision on digital transformation and its process at small and medium-sized enterprises in Hanoi, Vietnam
Abstract
The research was conducted based on the theory of planned behavior (TPB), with the research model built on 06 influencing factors to the digital transformation process of businesses, with the intermediate variable “Decision on digital transformation”. There were 456 small and medium-sized enterprises in Hanoi surveyed for this research from March to June 2023. Research results found that the digital transformation process of small and medium-sized businesses in Hanoi are strongly affected by the “digital transformation decision”; while the technology platform and employees' capabilities largely determine these businesses’ decision to digital transformation and its process. On that basis, three policy implications are proposed to promote the digital transformation process at small and medium-sized enterprises in Hanoi.
The intention to adopt new methods is a topic commonly explored within the context of the technology acceptance model (TAM). TAM primarily focuses on assessing the perceived effectiveness and ease of use of these new methods, without directly comparing them to existing methods. This approach stems from the belief that the newly adopted method will be more effective than the existing one. Additionally, the influence of self-perception on individuals' decision-making processes and their inclination to accept new innovations is widely acknowledged. In light of these considerations, this article presents survey findings obtained from 438 healthcare service facilities in Vietnam, specifically targeting board members and rehabilitation doctors. The results reveal that the intention to implement rehabilitation exercises for patients in these facilities is significantly influenced by three main factors: (1) the perceived effectiveness of rehabilitation exercises compared to current methods; (2) the visibility of rehabilitation exercises in patient treatment; and (3) the perception of rehabilitation exercises' effectiveness in patient treatment. Furthermore, the self-identification of healthcare facility managers as either adhering to modern or traditional practices can either facilitate or hinder their intention to employ rehabilitation exercises in patient treatment, respectively. Based on these findings, the article puts forth several proposed solutions to enhance the intention to utilize rehabilitation exercises for patient treatment within the medical service facilities of Vietnam.
All the models related to the assessment of companies’ readiness for transformation contain the domain that specifies the level of the corporate culture. Nevertheless, there is currently no consensus on the characteristics of an “ideal” corporate culture. Moreover, it is crucial for companies planning digital transformation to understand the minimum requirements for a corporate culture that ensure the success of planned changes. The study presents the system of universal characteristics of a company’s corporate culture necessary for the implementation of successful digital transformation projects. The combined use of case study and survey methods allow identifying characteristics specific to Russian companies. The distinguished characteristics are summarized as a system of criteria of companies’ readiness for digital transformation. Among them are such criteria as Employee Development, Building employee loyalty to the company, Talent attraction, The existence of a knowledge-sharing system within the company, Motivation, Cross-functional collaboration, System approach to corporate culture development. Along with the metrics for characteristics evaluation, the study proposes to use evidence.
In the last years, scholarly attention was on a steady rise leading to a significant increase in the number of papers addressing different technological and organizational aspects of digital transformation. In this paper, we consolidate existing findings which mainly stem from the literature of information systems, map the territory by sharing important macro- and micro-level observations, and propose future research opportunities for this pervasive field. The paper systematically reviews 58 peer-reviewed studies published between 2001 and 2019, dealing with different aspects of digital transformation. Emerging from our review, we develop inductive thematic maps which identify technology and actor as the two aggregate dimensions of digital transformation. For each dimension, we derive further units of analysis (nine core themes in total) which help to disentangle the particularities of digital transformation processes and thereby emphasize the most influential and unique antecedents and consequences. In a second step, in order to assist in breaking down disciplinary silos and strengthen the management perspective, we supplement the resulting state-of-the-art of digital transformation by integrating cross-disciplinary contributions from reviewing 28 papers on technological disruption and 32 papers on corporate entrepreneurship. The review reveals that certain aspects, such as the pace of transformation, the culture and work environment, or the middle management perspective are significantly underdeveloped.
The digitalization of industries is at the heart of today’s global economy. However, there seems to be a lack of knowledge about the most effective method for initiating a digital transformation in Small and Medium-Sized Enterprises (SME). In the context globalization and shortages in labors, access to goods, services and skills, the need for SMEs to face the competition becomes a crucial issue. This research attempts to develop a model, based on a literature review and case studies, in order to evaluate digital performance as well as to study the assumption that some parameters of the model, such as Leadership, Culture and organization and Data management for example, have different impacts on the performance of SMEs. A literature review and an 80-hour questionnaire-based methodology and field interviews allowed to evaluate the impact on business performance of the different notions revolving around the topic of digital transformation. The results show that the most significant parameters that tend to augment the digital performance and thus help to foster a digital transformation in SMEs are mainly the management commitment and exemplarity (28%), the acquisition and development of skills (26%), the digital architecture (42%), the automation (42%), the quality of data (42%) and the use of the e-commerce (42%). The purpose of this study is then to target those important elements that have the most effect on the performance of small and medium-sized manufacturing companies, with the aim of guiding efforts and investments both in academia and in the real world.
This research investigates how entrepreneurs of small and medium enterprises (SMEs) with inadequate capabilities and limited resources drove digital transformation in their companies, a phenomenon that remains under-researched in the extant literature. We conduct qualitative research on digital transformation to cross-border e-commerce undergone by 7 SMEs on the Alibaba digital platform. We inductively derive a process model that aims to describe and explain how SME entrepreneurs, with support from the digital platform service provider, drive digital transformation through managerial cognition renewal, managerial social capital development, business team building, and organizational capability building. This model expands our understanding of both digital entrepreneurship and digital transformation. It also presents new insights into how digital platform service providers can help SMEs transform and compete.
Digital transformation, which often includes establishing big data analytics capabilities poses considerable challenges for traditional manufacturing organizations, such as car companies. Successfully introducing big data analytics requires substantial organizational transformation and new organizational structures and business processes. Based on the three-stage evolution of big data analytics capabilities at AUDI, we provide recommendations for how traditional manufacturing organizations can successfully introduce big data analytics and master the related organizational transformations.
This paper describes the model of citizens and more generally any person engagement in Digital Transformation processes. Essential barriers that governments, business and people face and should be ready to overcome in the Digital Era are examined. The two-level model of person involvement in the Digital Transformation based on an increase in person’s motivation for acquiring additional competences and participation in the Transformation is suggested. This motivation is ensured by the synergy of person’s multiple roles and subject domains integration. Successful methods and practices in areas of integrated using information about children’s healthcare and education in Russia, the UK, and Canada are presented in evidence of possibility to gain valuable synergy achieved even at the first level of involvement. The schematic chart of the person’s Private Virtual Workplace and interactions in the Digital Society is presented for the second level of person involvement model realization.
Rapid and pervasive digitization of innovation processes and outcomes has upended extant theories on innovation management by calling into question fundamental assumptions about the definitional boundaries for innovation, agency for innovation, and the relationship between innovation processes and outcomes. There is a critical need for novel theorizing on digital innovation management that does not rely on such assumptions and draws on the rich and rapidly emerging research on digital technologies. We offer suggestions for such theorizing in the form of four new theorizing logics, or elements, that are likely to be valuable in constructing more accurate explanations of innovation processes and outcomes in an increasingly digital world. These logics can open new avenues for researchers to contribute to this important area. Our suggestions in this paper, coupled with the six research notes included in the special issue on digital innovation management, seek to offer a broader foundation for reinventing innovation management research in a digital world.
CIOs and other senior executives face the challenge of how to handle the opportunities and risks of digital transformation. To help managers address this challenge more systematically, we describe how three German media companies successfully approached digital transformation. Based on their experiences, we provide a list of 11 strategic questions and possible answers managers can use as guidelines when formulating a digital transformation strategy.
In recent years, firms in almost all industries have conducted
a number of initiatives to explore new digital
technologies and to exploit their benefits. This frequently
involves transformations of key business operations and
affects products and processes, as well as organizational
structures and management concepts. Companies need to
establish management practices to govern these complex
transformations. An important approach is to formulate a
digital transformation strategy that serves as a central
concept to integrate the entire coordination, prioritization,
and implementation of digital transformations within a
firm. Despite first research efforts and the frequent
challenges encountered in practice, academia still
lacks specific guidelines for firms on how to formulate,
implement, and evaluate digital transformation strategies.
Unlike digitally savvy banking and retail industries, oil and natural gas businesses are latecomers to digitization. With large capital investments in complex industrial operations, firms in latecomer industries are seeking ways to cut costs and become responsive to market demands. Executives in oil and natural gas companies are facing unprecedented pressure to cut costs due to market turbulence and need advice on how to undertake digitization; organizational changes needed; who should lead the digitization effort; and the role of the chief information officer (CIO) in executing a digital strategy. We address these issues by drawing on the experience of Encana Oil & Gas (USA) Inc. High fixed costs and declining gas prices required Encana to synchronize production with volatile demand for natural gas. To gain supply chain visibility, Encana's CIO and business leaders jointly targeted operational processes to embed digital technologies to capture, integrate and deliver information, established new Information Systems (IS) governance policies and redesigned the IS organizational structure. Together, these actions strengthened Encana's agility to respond to price and demand volatility. In doing so, Encana has become a frontrunner in a latecomer industry.
The resource-based view of the firm attributes superior financial performance to organizational resources and capabilities. This paper develops the concept of IT as an organizational capability and empirically examines the association between IT capability and firm performance. Firm specific IT resources are classified as IT infrastructure, human IT resources, and IT-enabled intangibles. A matched-sample comparison group methodology and publicly available ratings are used to assess IT capability and firm performance. Results indicate that firms with high IT capability tend to outperform a control sample of firms on a variety of profit and cost-based performance measures.
Valid measurement scales for predicting user acceptance of computers are in short supply. Most subjective measures used in practice are unvalidated, and their relationship to system usage is unknown. The present research develops and validates new scales for two specific variables, perceived usefulness and perceived ease of use, which are hypothesized to be fundamental determinants of user acceptance. Definitions for these two variables were used to develop scale items that were pretested for content validity and then tested for reliability and construct validity in two studies involving a total of 152 users and four application programs. The measures were refined and streamlined, resulting in two six-item scales with reliabilities of .98 for usefulness and .94 for ease of use. The scales exhibited high convergent, discriminant, and factorial validity. Perceived usefulness was significantly correlated with both self-reported current usage (r=.63, Study 1) and self-predicted future usage (r =.85, Study 2). Perceived ease of use was also significantly correlated with current usage (r=.45, Study 1) and future usage (r=.59, Study 2). In both studies, usefulness had a significantly greater correlation with usage behavior than did ease of use. Regression analyses suggest that perceived ease of use may actually be a causal antecedent to perceived usefulness, as opposed to a parallel, direct determinant of system usage. Implications are drawn for future research on user acceptance.
The ongoing development of information technology creates new and immensely complex environments. Our lifeworld is drastically influenced by these developments. The way information technology is intertwined in our daily life raises new issues concerning the possibility of understanding these new configurations. This paper is about the ways in which IS research can contribute to a deeper understanding of technology and the ongoing transformations of our lifeworld. As such, the paper is a conceptual exploration driven by a sincere and authentic desire to make a real difference in the way research on how technology influences our society is carried out. The article is based on the assumption that there are some foundational decisions forming research: the question of methodology, the question of object of study, and, most importantly, the question of being in service. In the paper we explore and propose a research position by taking a critical stance against unreflective acceptance of information technology and instead acknowledge people s life-world as a core focus of inquiry. The position is also framed around an empirical and theoretical understanding of the evolving technology that we label the digital transformation in which an appreciation of aesthetic experience is regarded to be a focal methodological concept. Full Text at Springer, may require registration or fee
The domain of e-business is characterised by rapid change and in such markets managers can no longer rely on the resources that they have assembled to provide their extant competitive position. Instead they must be able to combine resources in new ways, gain additional resources and dispose of superfluous resources, and to do this repeatedly and rapidly if they are to compete successfully. The term ?dynamic capabilities? is emerging in the strategic management literature for these skills. This study seeks to identify the dynamic capabilities that are necessary for e-business transformation and to identify practices in developing these capabilities that are both effective and common across companies, and might therefore be considered as ?best practice?. Eight distinct dynamic capabilities are identified, each appearing to address either innovative or integrative aspects of e-business transformation. Consistent with previous studies of dynamic markets it was found that ?best practice? involved simple, experiential and iterative approaches to these necessary capabilities.
Small and medium-sized enterprises (SMEs) lag behind larger firms when it comes to digitalization. This has negative impacts on firm performance. Despite the economic importance of SMEs, little is known about the antecedents, consequences, and challenges of SME digitalization. We have set three objectives to address this knowledge gap. Drawing on the resource-based view, we first investigate the impact of three main SME resources on digitalization: information technology, employee skills, and digital strategy. Second, we assess the impact digitalization has on financial performance. We then investigate whether digitalization mediates the effect of resources on performance. The results of a survey of 193 SMEs demonstrate how digitalization can impact SME performance, with the three resources positively relating to digitalization. And in turn, digitalization significantly relates to performance, mediating the effect of information technology on performance. It however does not mediate the effect of digital strategy or employee skills on performance.
Business digitalization is changing the competitive landscape in many industries. Digitally savvy customers are demanding more while threats of digital disruptions from new entrants are rising. This article describes how DBS, a large Asian bank, responded to digital threats and opportunities by adopting a digital business strategy. It identifies the capabilities needed and provides lessons for organizations aspiring to pursue a successful digital business strategy.
The phenomenon of big data—large, diverse, complex, and/or longitudinal data sets—is having a stark influence on organizational strategy making. An increase in levels of data and technological capabilities is redefining innovation, competition, and productivity. This article contributes to both practical strategic application and academic research in the strategic management domain by presenting a framework that identifies how big data improves functional capabilities within organizations, shapes entirely new industries, and is a key component of innovative and disruptive strategies used by learning organizations to diversify and break down barriers of traditionally defined industries. This framework provides an appropriate basis for internal corporate strategy discussions that surround big data investments by explaining how firms create value through various approaches. In addition, this we offer guidance for how firms might derive their own big data approach through the merits of aligning data strategy aspirations with data strategy authenticity.
Whilst organizations accept that effective information management (IM) is now crucial to information/knowledge worker productivity and organizational performance, the continued dramatic growth in information volumes has not been accompanied by increased information management capability. This is the case for both data and unstructured information. At the same time the consumerization of technology, growth in social media, and expectations of the work environment are resulting in pressure on IT and IM functions to deliver information and information tools via multiple channels/devices and simple interfaces. This article charts the evolution of views on the digital workplace and the drivers that now render this an essential strategic direction for organizations. The desirable features of the digital workplace can be achieved now through integration of four technologies – mobile; big data; cloud computing and search-based applications – and with a focus on developing for the mobile environment. Providing this environment could transform the way in which work is accomplished both in terms of individual and organizational productivity and competitiveness. Understanding organizations through an ethnological and cultural perspective will be essential to the design and management of this transformation.
Although much has been written about total quality management and employee involvement, little attention has been paid to individual-level determinants of employee's involvement in total quality management. The use of behaviour theory to formulate propositions regarding the determinants is especially scare in the total quality management and employee involvement literature. The major objective of the present research was to isolate individual-level factors that would enhance or hamper employee's involvement in continuous improvement activities related to work quality. The present research used the theory of reasoned action, the theory of planned behaviour and the technology acceptance model as bases to develop a causal model. On-site surveys were conducted at a leading Chinese cigarette firm having implemented total quality management over 10 years. The developed model was tested by means of structural equation modeling using LISREL. The results supported the model. The findings revealed that intentions to involve in the activities are the major contributor to employee involvement behaviour, and that these intentions are influenced firstly, by attitude towards involvement and, secondly, by professional ethics, self-efficacy, subjective norm, and perceived empowerment, and that these attitudes are influenced firstly by perceived usefulness, and secondly by perceived risk. Self-efficacy and perceived empowerment are also significant predictors of employee involvement behaviour. The implications of the research for managers and researchers, as well as research limitations, are also discussed.
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