Evaluating the relationship between corporate social responsibility, digital transformation, reputation and sustainable competitive advantage to business performance: Empirical research at restaurant and hotel enterprises in Ho Chi Minh City, Vietnam

Abstract

The objective of this study was to examine the relationship between CSR for employees;  CSR for customers; CSR for the environment; CSR for the local community; digital transformation through the role mediation of reputation and sustainable competitive advantage in Ho Chi Minh City, Vietnam. This study focuses on the foundations of constructing determinants of corporate performance, including CSR for customers, employees, the environment, and the local community, as well as digital transformation for future consideration. 497 managers who are actively involved in running hotels and restaurants in Ho Chi Minh City and who are also members of the Board of Directors were surveyed for the study. Data was gathered between April 7, 2024, and November 18, 2024. The most often observed variables for each factor were identified by the authors using confirmatory factor analysis (CFA) and structural Equation Modeling (SEM). According to research findings, the CB-SEM model showed that reputation and sustainable competitive advantage mediated the effects of CSR for employees, CSR for customers, CSR for the environment, CSR for the local community, and digital transformation on business performance with respect to earlier variables. There based on the aforementioned findings, the study has recommended managerial changes to enhance future investments in raising corporate social responsibility (CSR) for local communities, employees, customers, the environment, and digital transformation, reputation, and sustainable competitive advantage in order to achieve high business performance in hotels and restaurants in Ho Chi Minh City, Vietnam.