INTRODUCTION
The rapid advancement of digital technologies has compelled businesses to undergo digital transformation to remain competitive in both global and domestic markets This trend is prevalent across various sectors, including finance, services, commerce, and agriculture, highlighting the significance of embracing the digital economy for organizational survival and growth.
Digitalization is essential for agricultural companies to adapt to technological advancements and meet the expectations of both organizational customers and individual users It enhances connectivity within the agrifood system, enabling farmers to access vital technical information, secure higher quality seeds, gather real-time data, improve food traceability, and boost competitiveness This innovative approach addresses challenges within the global food system As science and technology evolve, agricultural operations must embrace digital transformation, with capital investment and leadership being key factors The Vietnamese government is increasingly prioritizing digital transformation in agriculture due to its significance in the economy Consequently, this study aims to identify the elements influencing digital transformation in Vietnam, contributing to both theoretical knowledge and practical applications.
In 2021, Vietnam's agriculture not only met but exceeded growth targets, continuing to serve as a crucial support for the economy and societal stability, provided that land conditions remain stable However, the threat of disease poses risks to this sector According to the General Statistics Office, agriculture, forestry, and fisheries experienced a 3.16 percent growth in the fourth quarter of 2021, with robust crop yields and expanded livestock production compared to the previous year.
In 2021, the agricultural sector experienced a growth of 3.18%, contributing 0.29 percentage points to the overall economy, while the forestry and fisheries sectors grew by 3.88% and 1.73%, contributing 0.02 and 0.05 percentage points, respectively Despite disruptions in various economic sectors, agricultural output remained steady, playing a crucial role in ensuring social security, national food security, and economic prosperity Notably, the stability of export turnover in agricultural products solidified its position as a cornerstone of the economy.
The integration stage of digital transformation in agriculture is marked by intensified competition, especially in high-tech sectors The pandemic has accelerated digital adoption across industries, highlighting the need for the agriculture sector to effectively leverage digital technologies Precision agriculture and garden management software are essential for optimizing resource use, facilitating a shift from traditional to modern farming practices This transition promises to enhance labor productivity, reduce dependency on environmental factors, manage diseases, and improve breeding During the Vietnam Agricultural Digital Transformation International Forum 2021, Foreign Minister Bui Tan Son emphasized the goal of transforming Vietnam into a modern industrialized nation by 2030 and a high-income developed country by 2045, with agriculture as a key priority in the national digital transformation agenda This research paper focuses on the role of digital transformation in enhancing agricultural firm management.
The rapid advancement of digital technologies has compelled businesses to undergo digital transformation to remain competitive in both global and domestic markets Research into digitalization is particularly beneficial for agricultural firms in Vietnam, providing valuable insights for both academic study and practical application This paper aims to contribute significantly to the understanding of digitalization in this sector.
This research offers essential insights into digital transformation, serving as a valuable resource for those interested in the topic It enhances the existing body of knowledge by identifying the challenges associated with digital transformation and highlighting key factors that influence its success.
This research addresses a significant issue that has garnered attention from both governments and societies, offering valuable insights for managers and practitioners It helps agricultural companies identify both the advantages and challenges of digitalization, while also providing tailored recommendations for innovation and growth in the post-COVID-19 era.
The study aims to identify the opportunities and challenges faced by agricultural companies in their digital transformation journey To achieve this goal, the research has established specific objectives that guide the investigation.
• Objective 1: Provide a theoretical background on digital transformation
• Objective 2: Identify challenges and opportunities for agricultural companies in Vietnam during digital transformation
• Objective 3: Determine factors affecting the digital transformation of agricultural companies in Vietnam
• Objective 4: Propose solutions for agricultural companies in Vietnam to overcome the identified challenges
This research employs a quantitative approach to explore the factors influencing digital transformation in agricultural companies in Vietnam, complemented by a qualitative literature review for deeper insights The literature review synthesizes data from panel studies and published articles, utilizing a targeted search strategy with keywords such as "digital transformation," "smart agriculture," and "digital transformation in agribusiness." For the quantitative analysis, surveys were conducted, with questionnaires distributed to personnel within agricultural firms The collected data was then analyzed using SPSS.20 software to statistically assess the impact of various factors on the digital transformation process.
The content is divided into six chapters, in addition to the introduction, thesis summary layout, and references:
Chapter 1 offers a comprehensive overview of digital transformation and highlights its significance for businesses It outlines the reasons for choosing this topic and discusses the research methodologies employed in this study.
Chapter 2 offers a theoretical foundation for digital transformation, defining its key concepts and outlining the advantages and challenges it presents for Vietnamese firms Additionally, the chapter examines the factors influencing the digital transformation journey of companies in Vietnam.
Chapter 3: This chapter, demonstrates the investigation process, including the study's design, the research method, the ways to gathers and samples data, and the method for measuring the acquired data
Chapter 4: The chapter describes the analysis process, provides statistical results of the research
Chapter 5 analyzes the findings presented in Chapter 4, exploring the connections between these results and the study's objectives while summarizing the discussion Chapter 6 highlights the study's contributions to both theory and practice, and addresses the research limitations to suggest areas for future improvement.
LITERATURE REVIEW
Literature Review
In examining the landscape of digital transformation, it is essential to revisit both international and domestic studies that have explored this phenomenon Numerous research efforts have identified various factors influencing digital transformation, highlighting the complexity and diversity of this evolving field.
A comprehensive study by Ottesjo et al (2020) evaluated the potential for digitization in small and medium-sized manufacturing enterprises in Sweden, focusing on engineering digitization and digital transformation as part of Industry 4.0 initiatives The research identified key factors influencing businesses' readiness for digital adoption, including the willingness to utilize public science enterprise technology and the prevailing corporate culture and habits.
Gamache et al (2019) assessed the efficiency of digital transformation in Quebec's manufacturing sector, focusing on small and medium enterprises (SMEs) Their findings indicate that the success of digital transformation in these SMEs is influenced by several key factors, including strong leadership commitment, robust digital infrastructure, necessary skills and qualifications, and high-quality information data Additionally, the study offers recommendations to encourage greater participation of SMEs in digital transformation initiatives.
Zapata et al (2020) assessed the effectiveness of various digital transformation maturity models and their impact on enhancing smart products for manufacturers The study offers recommendations aimed at boosting digital transformation performance specifically for small and medium enterprises (SMEs) By analyzing seven established digital transformation models, the authors established tailored design principles for each Additionally, the research identified key factors influencing the implementation of digital transformation in businesses within the Arve Valley, focusing on their goals and objectives.
7 transformation in businesses; the financial capacity of the enterprise; habits; business flexibility
Research by Genest and Gamache (2021) identifies the essential prerequisites for implementing Industry 4.0 in small and medium enterprises (SMEs) in Quebec Their findings reveal that many SMEs are lagging in adopting Industry 4.0, resulting in a performance gap compared to competitors A significant factor contributing to this underperformance is the lack of readiness for digital transformation The study outlines key conditions necessary for SMEs in the manufacturing sector to successfully transition to Industry 4.0, which include fostering a supportive business culture, establishing robust digital infrastructure, enhancing employee knowledge and skills, and ensuring adequate financial resources.
Sophie Peillon and Nadine Dubruc (2019) investigated the challenges faced by small and medium enterprises (SMEs) in the Auvergne-Rhône-Alpes region of France regarding digital transformation Utilizing a participatory action research approach, including interviews and discussions, the study identified two primary barriers: inadequate technical and technological infrastructure and a lack of qualified human resources for digital roles, alongside insufficient financial capacity within the businesses.
In 2020, Minh conducted a significant study on Digital Transformation in the Oil and Gas Industry in Vietnam, utilizing the Deloitte Digital Operations Transformation (DOT) model The findings revealed inconsistencies in the digital transformation mindset among oil and gas companies, outdated governance models, and fragmented information infrastructure Additionally, Vietnam's information policy in the oil and gas sector remains insufficient and fails to align with current realities.
Second finding with Phuong (2021), Phuong conducted a digital transformation study on another of Minh's industries when Phuong studied the impact of leadership on digital
Phuong's research on the SEM linear model reveals that the perception of digital transformation in tourism businesses is significantly influenced by the qualities of their leaders Additionally, the level of digital transformation adoption is directly affected by the skills of these leaders.
A recent study by Dien Chau et al (2022) highlights the significance of digital transformation in industrial waste management within southern provinces It underscores the importance of a digital technology platform for a waste information exchange center, which acts as a catalyst for this transformation However, the study identifies key challenges, including the absence of specific institutions and guidelines, the need for skilled human resources, and the financial investment required for successful digital transformation.
Phuong's research primarily focuses on the factor of leadership capacity, lacking a broader analysis of additional impacts In contrast, studies conducted by all three researchers across various fields demonstrate that digital transformation influences multiple areas significantly.
Ngan (2021) conducted a study in the same survey area as Dien Chau et al (2022) to evaluate the impact of digital transformation on economic growth in key southern economic regions Utilizing the differential GMM method developed by Arellano & Bond (1991), the findings indicate that enhancing the readiness for information technology application and development can significantly boost the Gross Domestic Product (GDP) of these localities Based on these results, the author proposed policy implications to facilitate the digital transformation process in southern key economic regions This study underscores the crucial role of digital transformation in the digital economy, although it does not specify the factors influencing this impact.
A study by Huong & Sen (2021) in Hanoi identifies key factors influencing small businesses' intentions to adopt digital transformation Using regression analysis, the research highlights that business objectives, digital transformation strategies, technology infrastructure, financial capacity, and the level of technology use significantly impact the decision to implement digital transformation Overall, Huong's findings emphasize the various elements that affect the digital conversion process in enterprises.
Digital transformation affects not only individual authors but also agencies and organizations A study by RMIT University revealed that state-owned enterprises (SOEs) prioritize optimizing internal processes for efficiency, while small and medium enterprises (SMEs) concentrate on external factors to attract customers and enhance cash flow Additionally, the findings indicate that businesses generally hold a negative view of investing in data-driven technology, with employees across organizations expressing strong skepticism towards digital platforms.
2021) This study points out the factors that have a negative impact on digital transformation but does not mention the factors that have a positive impact
A 2018 IDC survey highlighted in Finance magazine reveals that digital transformation is increasingly recognized as a strategic imperative for Vietnamese enterprises in the Fourth Industrial Revolution Nearly 90% of businesses are engaging in various stages of digital transformation, from learning and research to implementation Furthermore, over 30% of business leaders view digital transformation as crucial, emphasizing its effectiveness in enhancing customer understanding, boosting labor productivity, and fostering innovation.
Recent studies on digital transformation in agriculture in Vietnam have highlighted several gaps, particularly in research models and methodologies, with some conducted prior to the Covid-19 pandemic, potentially compromising their relevance This study aims to fill that gap by examining the factors influencing digital transformation during the city's gradual normalization The research identifies five key factors: the impact of the Covid-19 pandemic, government support, technology infrastructure, employees' technological proficiency, and management practices.
Digital transformation in Agriculture Company
Over the past few year, there have been various definitions of digital transformation These are some definitions we found from some professionals and organization:
One of the earliest definition of digital transformation is created by Westerman et al
Digital Transformation (DT) is increasingly recognized as a crucial strategy for enhancing enterprise performance and reach, as noted in 2001 Companies worldwide are leveraging advanced technologies like analytics, mobility, social media, and smart embedded devices, while also optimizing traditional tools like ERP systems This shift is fundamentally changing customer relationships, internal processes, and value propositions across various industries.
Regarding this issue Massone, (2014) had a slightly different approach as he claim that:
“Digital Transformation is the deliberate, and ongoing digital evolution of a company, business model idea process, or methodology, both strategically and tactically."
Digital Transformation (DX) involves the comprehensive integration of digital technology across all business areas, fundamentally altering operations and customer value delivery It also represents a cultural shift, necessitating organizations to consistently question existing practices, embrace experimentation, and accept failure as part of the innovation process.
Digital transformation encompasses diverse viewpoints from both individuals and organizations For instance, PwC (2013) defines it as a profound change affecting the entire business landscape, driven by the establishment of revolutionary technologies rooted in the Internet of Things, which significantly impacts society as a whole.
Digital transformation involves integrating technology into every facet of a business, fundamentally changing operations, business models, and enhancing customer value This process accelerates business activities and requires a significant shift in mindset and approach.
11 in company culture, pushing organizations to constantly adapt, try new ideas, and embrace failure
2.2.2 Current situation on digital transformation in Vietnam Agricultural companies
Vietnam's agriculture is currently grappling with challenges such as climate change, market fluctuations, and evolving consumer trends, necessitating an increased focus on digital agriculture The integration of data-driven digital transformation is anticipated to enhance industry growth through improved market planning and forecasting While Covid-19 has posed significant challenges, it also presents an opportunity for Vietnam's agricultural sector to accelerate its digital transformation and strengthen its position in the global agricultural supply chain Consequently, embracing digital transformation is viewed as the most effective strategy for Vietnam's agricultural industry to navigate post-pandemic recovery and reinforce its critical role in the economy.
Agricultural companies in Vietnam are increasingly embracing digital transformation in their management and production processes The integration of Internet of Things (IoT) technology enables various specialized and mobile devices to communicate effectively, all managed from a central control hub For instance, Cau Dat Da Lat Joint Stock Company (Cau Dat Farm) has pioneered the production of clean agricultural products through hydroponics Today, the company operates a large-scale farm that integrates a smart agricultural system with IoT applications across multiple stages of cultivation and consumption This advanced monitoring and control system allows farm owners to remotely manage humidity, watering, and fertilization, enhancing overall farm management efficiency.
The horticulture industry leverages software to analyze environmental data and plant growth stages, enabling real-time monitoring of these crucial parameters Meanwhile, the livestock sector employs blockchain technology and biotechnology in large-scale farming operations Notable companies like VinEco and Hoang Anh Gia Lai are at the forefront of these advancements.
Nafoods, and Dabaco have applied high technology, information technology in operating the production, distribution and consumption of products.” ("Listening to People's Plans: Prioritizing Digital Transformation in Agriculture", 2022)
TH Dairy Farm is utilizing advanced Israeli dairy technology, incorporating electronic pedometers to monitor cow activity, detect estrus, and automate milking processes This innovative system enhances milk quality management, facilitates early mastitis detection, and improves overall disease control, ensuring accurate and effective herd management.
Vietnam Dairy Products Joint Stock Company (Vinamilk), a leading dairy company in Vietnam, recognized the significance of digital transformation and initiated its journey in 2005 in collaboration with Microsoft The Chief Technology Officer noted that the adoption of Office 365 ATP and EMS has enabled the company to reduce operating costs by nearly 80% Additionally, Vinamilk benefits from enhanced decision-making capabilities, as data analysis and trend identification are streamlined through the use of Power BI business analytics.
Benefits and challenges of digital transformation in agricultural companies
Digital transformation is pivotal for businesses, offering remarkable results and new opportunities, particularly in fostering environmentally friendly practices It serves as the foundation for green development, enabling the agricultural sector to adapt to climate change while reducing pollution and greenhouse gas emissions As Ta Van Tuong, Deputy Director of the Hanoi Department of Agriculture and Rural Development, notes, Hanoi has effectively utilized digital maps to create a comprehensive database on land, updating information on soil health and composition This shift towards sustainability in agriculture, driven by digital transformation, emphasizes the importance of integrating sustainable practices within the industry.
Transformed agriculture can effectively address contemporary challenges, as demonstrated in recent studies The implementation of digital transformation strategies is essential for sustainable agricultural development Consequently, optimizing resources will significantly support the growth of the agricultural sector.
The digital transformation process plays a crucial role in integrating agricultural production and consumption, helping to mitigate supply chain interruptions essential for agricultural development Research indicates that Industry 4.0 technologies significantly enhance supply chain management (SCM) by promoting extensive integration and information sharing, leading to improved performance across various supply chain processes, including procurement, production, inventory management, and retailing This holistic approach not only boosts the quality and value of agricultural products but also addresses challenges posed by the COVID-19 pandemic, ensuring stable prices for breeders By fostering chain production, the agricultural sector can enhance commodity value, prevent devaluation from good harvests, and ultimately drive economic growth and increased profits.
Digital transformation enhances product quality, fostering brand integrity that protects producers and builds customer trust With the growing demand for monitoring food origin, quality, and safety, it is essential to register protections and establish trademarks when launching products Meeting quality standards simplifies the registration process, facilitating easier market access during economic integration.
In response to the challenges posed by an aging population, declining birth rates, and youth migration from rural areas, Taiwan's National Development Council (NDC) has launched the "Regional Revitalization Initiative." This initiative aims to provide joint funding for local governments, businesses, and academic institutions that foster social and economic growth in rural regions, encourage regional migration, and achieve a sustainable balance between urban and rural development Additionally, the Big Data and FinTech Research Center, along with the International AI and Blockchain Consortium, supported by the Global Research & Industry Alliance and funded by Taiwan's Ministry of Science and Technology, is collaborating with industry and government to advance big data and blockchain solutions.
Founded in 2016, Blueseeds is a social enterprise dedicated to producing natural essential oils and skincare products, aimed at delivering exceptional aromatic experiences while promoting environmental and social well-being The brand has established a sustainable supply network by partnering with farmers in unpolluted regions of Taiwan, specifically Taima, Changbin, and Zhoulan, and collaborating with local entrepreneurs to build production facilities Additionally, Blueseeds has launched a farming school to educate farmers on natural farming techniques, train manufacturers in the production of natural products, and offer classes that highlight the benefits of green practices and natural products to the community.
In just three years, Blueseeds has expanded its products to China, Thailand, and Canada, while forming a strategic partnership with technology startup Fusion$360 to foster a trusted brand and sustainable business model Founded in 2016, Fusion$360 aids enterprises in accelerating digital transformations and developing innovative applications through an API-based ecosystem that supports ABCDE technologies across various value chains Additionally, Fusion$360 offers FusionPay, a blockchain-based payment solution, Xfile for private data protection and sharing, and a decentralized over-the-counter exchange system known as B2E.
Asia University, along with central government initiatives from MOST and NDC, the Taitung local government, and Fusion$360, collaborates with Blueseeds to foster agricultural transformation and environmental ethics Their joint efforts focus on promoting natural products, healthy living, and stimulating the local economy while nurturing innovative technology and agriculture startups This partnership aims to establish global brands in aromatic herbs and botanical products, supporting Fusion$360's growth as a leading global API and blockchain solutions provider.
Fourth, digital transformation is a motivation for management efficiency By the end of
The Covid-19 pandemic in 2020 triggered significant disruptions in social life, prompting a swift shift towards digital technology adoption across various sectors This digitization is transforming organizations and work environments, presenting new challenges for leaders According to Antonopoulou et al (2022), effective digital leaders possess strategic leadership skills, business acumen, and a strong understanding of technology trends to drive organizational value Research indicates that leaders with digital skills play a crucial role in higher education, with transformational leadership positively correlating with employee efficiency and satisfaction, while passive leadership styles are linked to negative outcomes.
One of the primary challenges in adopting technology is securing adequate funding, which is often perceived as a significant barrier However, the actual costs are primarily concentrated in the application design phase, leading businesses to hesitate in pursuing digital transformation According to the International Data Corporation (IDC), global spending on essential technologies and services for digital transformation is expected to surge, highlighting the importance of investing in these advancements.
By 2023, the financial services sector is projected to grow by $2.3 trillion, driven by significant investments in banking, insurance, and security services A Forrester report indicates that companies are consistently investing in innovative technologies to support this rapid growth.
Businesses are increasingly focusing on adopting new applications and platforms, as well as upgrading legacy systems, with both areas accounting for 32% of their digital transformation efforts Each organization approaches these initiatives based on its unique financial circumstances, objectives, and capabilities, making it essential to consider these factors However, digital transformation comes with significant risks; research indicates that 70% of such initiatives fail to achieve their intended goals Without proper precautions, the costs associated with these transformations can escalate dramatically.
Investing in technology can be time-consuming, and businesses must overcome this challenge to enhance design and installation speed while adapting to digital advancements Ashley Friedlein highlights that digital transformation is a lengthy process, often taking closer to five years for larger organizations, contrary to the expectation of achieving it within a year This five-year timeline is frequently cited as it balances long-term investment with the typical tenure of a Chief Marketing Officer Sean Cornwell, former chief digital officer at Travelex, discussed this five-year strategy during the Festival of Marketing in 2015, emphasizing its importance for organizational growth and adaptation.
Vietnamese farmers face challenges in adapting to new technology due to limited knowledge and experience As highlighted by Dudharejia (2020), employees often struggle to embrace technological changes, particularly when they have been accustomed to the same systems for extended periods This resistance to change is magnified in large organizations, where the transition involves numerous staff members Therefore, it is essential to provide adequate time and training for farmers to effectively integrate and utilize new technology models.
Vietnam's agriculture sector is experiencing significant digital transformation, driven by strong support from government agencies and technology enterprises This shift has led to notable improvements in quality, productivity, and innovative management practices, enhancing the overall efficiency of agribusinesses.
RESEARCH HYPOTHESES AND RESEARCH
Establishing research hypothesis
The COVID-19 crisis has rapidly transformed business operations across various sectors, leading to a significant acceleration in digitalization, as highlighted by a recent McKinsey Global Survey which indicates that companies have advanced their digital initiatives by three to four years This urgent shift towards digital transformation was driven by the necessity to adopt contactless technologies to ensure the health and safety of employees and customers This study aims to examine the impact of digital transformation specifically within agricultural companies, proposing a hypothesis to explore these changes.
H1: Covid-19 has negative influence on digital transformation in agricultural companies
During a recent meeting, Minister of Planning and Investment Nguyen Chi Dung announced Vietnam's initiative to support businesses in digital transformation from 2021 to 2025 The program aims for all enterprises to recognize the significance of digital transformation by 2025, with at least 100,000 businesses benefiting from the support offered.
According to Chen (2021) and colleagues, the government plays four crucial roles in facilitating digital transformation for small service businesses: creating a digital platform, promoting mobile and digital payment solutions, offering digital training, and establishing a digital collaboration ecosystem Their research also highlights a model that identifies barriers and outlines the necessary government support for advancing digital transformation in this sector.
This study examines 19 businesses, contributing valuable insights to the conceptual framework and management strategies in the realm of digital transformation (Chen et al., 2021) The findings highlight the potential for practitioners to enhance their approaches and suggest that government policies and programs could be adjusted to better support digital transformation initiatives in small service businesses (Chen et al., 2021).
Therefore, the following hypothesis is suggested:
H2: Government has positive influence on digital transformation in agricultural companies
The TOE framework illustrates the impact of technology, organization, and environment on technological innovations, highlighting its research flexibility to accommodate varying factors (Ziemba, 2020) It encompasses all relevant technologies for an enterprise, including those currently in use, available but unused technologies, and innovative solutions that can facilitate the enterprise's evolution and adaptability (Dyk & Van Belle).
1970) Technological factors identified include the imperative to address technical challenges, including securing infrastructure (Kavanagh, 2019)
An effective omni-channel strategy enhances user experience through personalization By leveraging digital technologies, businesses can collect, analyze, and assess data to optimize their value chain, ultimately leading to increased profitability.
Therefore, the following hypothesis is suggested:
H3: Technology infrastructure has positive influence on digital transformation in agricultural companies
A recent study explores the effects of soft management practices, employee behavior, and digital technology implementation in manufacturing plants The results reveal that trained employees may experience negative impacts from digital transformation Additionally, the research indicates that various soft management practices and employee behaviors are not only affected by manufacturing digitalization but also play a significant role in influencing the digital transformation process (Alieva & Powell, 2022).
Therefore, the following hypothesis is suggested:
H4: Employee's level of technology has negative influence on digital transformation in agricultural companies
The organizational component of the TOE framework encompasses all descriptive metrics and resources of a business, such as employee count and communication protocols, which can significantly influence executive management decisions related to the adoption and implementation of new strategies (Ziemba, 2020).
A recent survey by Couchbase revealed a staggering 90 percent failure rate among CIOs and technology leaders attempting digital transformation initiatives, despite their understanding of the key components necessary for success.
Researchers at McKinsey emphasize the crucial role of change management in achieving successful outcomes However, they discovered that many change management initiatives fail due to outdated models and techniques that do not align with the fast-paced nature of today’s business landscape.
Therefore, the following hypothesis is suggested:
H5: Management has influence on digital transformation in agricultural companies
Research Design
Based on the above hypothesis, the research frame work is proposed as following The research framework includes 5 variables:
The Covid-19 pandemic, government support, technology infrastructure, employee technology proficiency, and management are distinct factors within this framework, while digital transformation serves as the dependent variable This model assumes a singular mode of interaction among these variables, with arrows and solid lines illustrating the causal relationships and interactions between the elements.
This research employed quantitative methods, utilizing a questionnaire developed from prior studies Each variable was assessed through four to five questions rated on a one to five scale, and the questionnaire included business-related questions to confirm respondent eligibility Data analysis was conducted using SPSS 20 software, chosen for its speed and reliability over manual analysis.
The research team employs statistical methods to analyze data, focusing on variable description, scale reliability evaluation (using Cronbach's Alpha and EFA), correlation analysis, and multiple regression Descriptive statistics simplify complex quantitative data from large datasets into understandable summaries, while the Cronbach's Alpha reliability test assesses the consistency of the measurement scale.
Exploratory Factor Analysis (EFA) is a quantitative method that simplifies a large number of interrelated measurable variables into a smaller set of meaningful factors, preserving most of the original information The correlation among observed variables within the same factor indicates their contribution to the overall measurement of the concept represented by that factor A strong Cronbach Alpha result signifies that the observed variables included are highly reliable, demonstrating their effectiveness in capturing the essence of the underlying factor (Hair et al.).
Correlation analysis measures the strength of associations between quantitative variables, helping researchers identify the linear relationship between independent and dependent variables In contrast, regression analysis estimates the equation that best fits the observed data, providing insights into the true relationship between these variables This technique enables predictions of the dependent variable based on known values of the independent variable.
Based on the given theoretical framework as well as previous research, the team did build the following model to analyze the effect of some factors on Digital transformation
DT=f (CP, GOV, TI, ELT, MA)
CP: Covid-19 pandemic GOV: Government support TI: Technology infrastructure ELT: Employee's level of technology MA: Management
To determine the influence of 5 given factors on digital transformation, from the theory presented above, the team proposed the following research model:
DT = β1CP + β2GOV + β3TI + β4ELT + β5MA + ε
This research involved 15 agricultural enterprises of varying sizes in Vietnam, utilizing convenience sampling to select participants based on the willingness of employees to contribute While this straightforward sampling method offers valuable insights, it does not encompass the entire agricultural sector in Vietnam.
In this study, 220 questionnaires were distributed, with 196 responses collected using a five-point Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree) The data was gathered through an online Google Form to ensure accurate control and collection While a comprehensive analysis of complete organizations is ideal, the extensive number of firms made sampling time-consuming; thus, only registered agribusinesses in Vietnam were included As businesses increasingly innovate to align with government policies, this study specifically focuses on agricultural enterprises engaged in digital transformation initiatives.
Measurement Instrument
IBM SPSS software platform offers advanced statistical analysis, a comprehensive library of machine-learning algorithms, and text analysis, along with open-source extensibility and seamless integration with big data for efficient application deployment Designed for simplicity, adaptability, and scalability, IBM SPSS aims to analyze data, assess error likelihood, and evaluate the reliability and validity of expected outcomes, utilizing self-administered questionnaires for data collection.
Figure 1: The proposed research model is as follows (Source: Author’s work)
DATA ANALYSIS & RESULT
Quantitative analysis
(Source: Data analysis results of the research)
These steps to ensure that all variables observed are "true" values and whether they are
Cronbach's alpha is a key index for assessing the reliability of a scale, widely recognized in research According to Tavakol & Dennick (2011), it measures the internal consistency of a test, yielding a value between 0 and 1 Generally, a Cronbach's alpha of 0.6 is considered acceptable, while 0.70 and above is regarded as good, 0.80 and above as better, and 0.90 and above as excellent.
The analysis reveals that all five independent factors exhibit high Cronbach's alpha values, ranging from 0.825 to 0.916, indicating their reliability for further investigation In contrast, the dependent factor shows a Cronbach's alpha value of 0.690, confirming that the scale is acceptable for use.
(Source: Data analysis results of the research)
Factors Items numbers Number of items
Covid-19 pandemic (CP) CP1, CP2, CP3, CP4 4 0.851
GOV1, GOV2, GOV3, GOV4, GOV5
Employee's level of technology (ELT)
ELT1, ELT2, ELT3, ELT4, ELT5
Management (MA) MA1, MA2, MA3, MA4,
Explanatory factor analysis with varimax rotation, as noted by Lehmann (1988), is employed to assess convergent and discriminant validity This method is useful for evaluating multiple items that either share the same construct or represent different constructs.
The results of two exploratory factor analysis (EFA) runs are presented, with the first analysis incorporating factors such as the COVID-19 pandemic, government influence, technology infrastructure, employee technology proficiency, and management practices Additionally, digital transformation is identified as the second moderating variable in the study.
Table 4.3: KMO and Bartlett’s Test for independent variables
(Source: Data analysis results of the research)
Kaiser-Meyer-Olkin Measure of Sampling
The results shown that KMO was 0.626 which higher than 0 5 and Sig was
0.000, smaller than 0.05 Therefore, all the items is appropriate to analyzing EFA
Table 4.4: Summary of EFA results for independent factors
(Source: Data analysis results of the research)
As for independent factor, the result is shown in Table 4.4 It can be observed clearly from the figure that the KMO measure (Kaiser-Meyer-Olkin) has the value = 0.626 and
Bartlett’s Test of Sphericity: Sig= 0.000(50%)
Bartlett's Test has a value of Sig = 0,000 0.5)
The results shown that KMO was 0 670 which higher than 0 5 and Sig was 0.000 which smaller than 0.05 Therefore, all the items are appropriate to analyzing EFA
Pearson's Correlation is a statistical method used to assess the linear relationship between two continuous variables The Pearson correlation coefficient ranges from -1 to 1, where +1 signifies a perfect positive linear relationship, -1 indicates a perfect negative linear relationship, and 0 denotes no linear relationship between the variables.
Before running regression, the correlation analysis will help to test the correlations between independent variables and dependent variables The results of correlations between will be shown in following table
(Source: Data analysis results of the research)
** Correlation is significant at the 0.01 level (2-tailed)
* Correlation is significant at the 0.05 level (2-tailed)
Analysis of Table 4.6 indicates that the absolute values of the correlation coefficients (|r|) are greater than 0, confirming that all independent variables are correlated with the dependent variables Additionally, the moderating variables also show correlations with the dependent variables Consequently, all variables are included in the regression analysis.
This study aimed to investigate the impact of various corporate and environmental factors on the decision to adopt digital practices in agribusiness It theorized that five characteristics of digital transformation—namely the Covid-19 pandemic, government influence, technology, employee qualifications, and management—negatively predict this digital shift To test this hypothesis, multiple regression analysis was conducted.
Table 4.7: Linear Regression Analysis for testing
(Source: Data analysis results of the research)
Coefficient beta t Value sig VIF R2 Adj-
As the results of table 4.7, there is no variable have VIF index greater than 10, p-value