Impact of digital transformation on sustainable performance of ICT enterprises in Vietnam

Abstract

The article explores the impact of digital transformation on enterprises' sustainable performance in all three economic, social, and environmental aspects, as well as the mediating role of innovation in the context of developing countries. The study uses the PLS-SEM model to analyze data collected from surveying 254 enterprises in Vietnam's information and communication technology (ICT) field. The research results show that the direct impact of digital transformation on sustainable performance is positive, though not strong. However, through innovation, the indirect effect is substantial. Thus, the study confirms the mediating role of innovation in bridging the relationship. The study also highlights the role of digital skills and strategy in successfully implementing digital transformation. In contrast, the influence of digital technology and government support in ICT enterprises is limited. The sample of the responding companies is limited to enterprises from the ICT field. In addition, this study has not mentioned several other elements that affect digital transformation. The study offers practical implications for business leaders in prioritizing training employees' digital skills and innovating strategies for organizations to achieve effective digital transformation and sustainable performance. The study suggests that enterprises and governments support digital transformation to develop sustainable businesses. Theoretically, the study contributes to the addition of empirical evidence on the impact of digital transformation through innovation on enterprises' sustainability, thereby opening up future research directions.