Impact of digital transformation on business efficiency of Vietnam private enterprise
Main Article Content
Abstract
The objective of this paper is to analyze the impact of digital transformation on the business performance of Vietnamese private enterprises. Data is collected from two sources: audited financial statements and a survey of the actual extent of digital transformation at publicly traded private companies during the period of 2018–2022. The ROE index is used to measure business performance, and the measurement of digital transformation will include seven components (Company strategy; Customer experience; Supply chain; Business management, Data management system; Risk management; People and Organizations). he degree of digital transformation of enterprises (from degree 0 to Level 5) will be summarized based on the results of the survey. The results of the FGLS model estimate indicate that digital transformation has a negative impact on the business results of companies and that the degree of impact of each digital transformation component on the business efficacy of private companies varies. . On the other hand, regression analysis of the digital transformation components reveals that the impact of digital transformation on business efficacy is ambiguous. This result is consistent with the reality in Vietnam, as this is the time when businesses initiating digital transformations must invest large sums of capital and have no experience, thus they have not yet witnessed the efficacy of digital transformation investment. The group proposes implications for digital transformation, bringing business efficacy to Vietnamese private enterprises, based on the findings of their research.
Article Details
Keywords
Business efficiency, Digital transformation, Private enterprises, Vietnam
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