Digital transformation of business community in globalization: an empirical study in a typical developing country

Abstract

The research object focuses on the digital transformation (DX) process of the enterprises and corresponding management policies from the State. In the context of a transition economy, deeply integrated into the world economy, and facing competition pressure many times higher than the one in the domestic market, businesses have themselves prepared such things like the understanding of how DX is, how DX-ready they are, how much to invest and where they are on the path. The context of Vietnam is used as a good example of a developing country with progressing digitalization and fierce competition from abroad. Hence, the authors have carried out a positivist analysis, using quantitative and qualitative indicators to clarify the DX of the companie. Quantitative indicators refer to a 5-point scale or percentage point in the assessment, allowing the statements, by the survey participants or the researchers themselves, to have a uniform basis. Qualitative indicators are drawn from structured observations, in-depth interviews, and literature review, mainly focusing on two extremes, good and bad. As the main results of the study, almost 90 % of Vietnamese businesses raise awareness of DX to apply into their operations or to seek for DX solutions. Only 40 % of businesses have the budget to receive DX consulting and solutions, and up to 20 % of businesses have absolutely no budget for DX. The DX readiness is highest in industries whose activities are closely related to a direct supply of goods and services. The DX promotion may root from the increasing number of customers using the Internet alongside their savvy digital skills, or from digital logistics enabling the strong growth of e-commerce, and from favorable policies from the State. Still, concerns about personal data, costs of technology investment, or business habits changing are typical challenges

Economic structural transformation: The Vietnamese case for developing nations in a globalization context

“…Limited collaboration between educational institutions and industries exacerbates this mismatch. Additionally, a lack of investment in research and development and innovation also hampers technological advancements and skill development in Vietnam (Phan and Dinh, 2023).…”