Digital transformation toward sustainable development in Vietnamese small and medium enterprises

Abstract Digital transformation is not just a fad, it is also a significant opportunity for businesses to streamline processes, provide customers with value, and boost productivity. The research was conducted to understand the impact of digital transformation on the firm performance of Vietnamese small and medium enterprises. The number of survey samples is 930 and the SEM method is used to process data using SmartPLS 4.0 software. Research results show that digital transformation has a positive impact on business performance. The research results also confirm the mediating role of digital innovation and the moderating role of CSR for customers. This study clarifies the connection between digital information and firm performance in Vietnamese small and medium-sized enterprises, diversifying the results of business performance analysis. Additionally, businesses can use the research findings as a springboard to develop strategies for deploying digital activities that contribute to sustainable development.