Báo cáo nghiên cứu khoa học: Factors affecting the commitment to digital transformation of Vietnamese SMEs

VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL STUDENT RESEARCH REPORT FACTORS AFFECTING THE COMMITMENT TO DIGITAL TRANSFORMATION OF VIETNAMESE SMEs... From the resource-base

Introduction

Chapter 2: Literature Review

Institutional theory and resources-based view theories are applied to explain the theoretical framework

Institutional theory posits that external environmental factors significantly influence organizational operations and decision-making processes (Yu & Pan, 2020) As such, it serves as a potent analytical framework to assess the impact of external variables on organizations' behavior (Mizruchi and Fein 1999).

(2007) reveal that the impact of institutional pressures on complex business systems is continuously adopted and subsequently undergoes evolution Through the process of isomorphism, in simple terms, institutional pressure, one unit in a population is forced to resemble other units that experience the same set of environmental circumstances (Sherer, et al., 2016) There are three basic types of institutional isomorphism consisting of coercive, mimetic and normative (DiMaggio and Powell 1983) and in relation the organization is under three kinds of external pressure

Coercive: Coercive occurs when an organization agrees to formal and external influences from other organizations they depend on, as well as from the cultural norms of the society in which they operate (DiMaggio and Powell 1983) In addition, industrial and professional networks and associations, government regulations and policies, and the need for competition within specific sectors or market areas can all be sources of coercive pressure (Tolbert and Zucker 1983)

Mimetic: In other words, “imitative” means that businesses tend to adopt others’ successful elements when uncertain about alternatives (DiMaggio and Powell 1983) In the context of

DT when the technologies are varied and poorly comprehensive, the lack of knowledge about DT, and the uncertain outcomes, organizations might respond to uncertainty by mimicking actions of similar organizations It is typical for managers of an organization to look for other company's models in the same industry to follow (Yu & Pan, 2020)

Normative: Normative isomorphism is learning from others in professional networks The normative pressure comes from the socialization of organizational actors, forming a set of values and defining specific organizational arrangements as the “best and customary” way of organizing certain activities (Leicht & Fennell, 2008)

Based on the institutional theory of external forces on organizational decision-making; we develop hypotheses on the association of the influence of “Governments”, “Competitors”, and “Customers” on the DT commitment

The RBV perceives an organization as a bundle of resources and capabilities; a system of tangible and intangible assets and capabilities (Chwiłkowska-Kubala, et al., 2023) RBV defines resources generally as assets, organizational processes, firm traits, information, or knowledge that an organization controls and may utilize to develop and implement its strategy that improves its efficiency and effectiveness (Madhani, 2010; Barney, 1991) According to RBV, a company may gain a competitive advantage by combining resources and competencies that are valuable, rare, imperfectly imitable, and non-substitutable (VRIN) that it can control (Barney, Wright, & Ketchen, 2001) Fenech, et al (2019) reveals that RBV is a model that views resources as a key to superior company performance It is widely accepted that DT necessitates the integration of several complementary resources; therefore, the RBV offers a helpful lens through which to examine DT in SME (Zhang, et al; 2022; Eller, et al., 2020) Particular organizational and technological resources are required for SMEs to commit and successfully deploy DT (Omrani, et al., 2022)

Resources of a company can be classified into 3 main subcategories which consist of physical capital resources, human capital resources, and organizational resources (Barney,

1991) Physical capital resources (Williamson, 1975): This consists of physical technology, plant, and equipment that a company owns It also refers to the firm's geographic location and its access to raw materials Human capital resources (Becker, 1964): This covers the training, experience, judgment, intelligence, relationships, and insight of individual managers and employees within a firm Organizational capital resources (Tomer, 1987),

14 this includes a firm's formal reporting structure, its formal and informal planning, controlling, and coordinating systems, as well as informal relations among groups within a firm and between a firm and those in its environment

Utilizing the RBV, we review the literature to enhance understanding and formulate hypotheses on the relationship between one internal factor “Digital Leadership” , 3 key resources of SMEs including “Digital technology”, “Financial resources”, “Human resources” and “Digital transformation commitment”

Figure 1: Research model and hypotheses

2.1 Governance pressure and commitment to DT

Governance pressures are rooted in powerful regulatory agencies including government and industry associations which organizations depend on (Liang, et al, 2007) Drawing on the RBV, SMEs have few resources and capabilities and normally are unable to compete with larger companies based on their scarcity of resources, lack of specialist expertise, and limited market influence (Zhang, et al., 2022) Several studies have been carried out to analyze the roles of governance pressures in improving SMEs’s productivity and growth, and they come to the conclusion that the government and industry association support of SMEs is indispensable, without these support, SMEs can not achieve DT (Krajia, 2014)

In response to the trend of DT, the government of Vietnam, and the Vietnam Association of Small and Medium Enterprises (VINASME) have been planning to introduce various regulations and policies to support SMEs in DT (Chuc & Anh, 2023) The Ministry of Planning and Investment (MPI) has launched a program called “Supporting Enterprise” Digital Transformation from 2021 to 2025 helping Vietnamese enterprises boost productivity, resilience, and global reach The Vietnam Software and IT Services Association (VINASA) has a digital transformation guideline framework in 26 fields Krüger & Teuteberg (2016) identifies government regulations as one of the most important external factors impacting the process of digital transformation in the company Chen, et al (2021) conducted a study about the role of governance pressure in supporting small service businesses, concluding that governance pressures have a vital role in enhancing the digital transformation process by creating policies, and specific programs Another research by Kuo, et al (2022), the effect of institutional pressures on shipping DT in Taiwan also comes with the same result that the DT mainly results from governance pressure Liere-Netheler, et al (2018) claims that the government has a special role in driving DT in SMEs in Germany regarding the timeline Zhu, et al (2023) examined regulatory policies for DT of SME manufacturing enterprises and classified it into 2 categories regarding risk which are risk-averse, and risk-neutral, and drew an interesting conclusion that the government needs to regulate to effectively promote DT We expect

16 that the governance pressures retain a crucial role in influencing DT commitment in Vietnamese SMEs

H1: Governance pressure is positively related to DT commitment

2.2 Competitor pressure and commitment to DT

Based on institutional theory, competitors might have an impact on the enterprise's decision-making (Mizruchi and Fein 1999) Due to the uncertain outcomes of DT, the organization might respond to ambiguity by copying the actions of similar organizations called mimetic pressure (Teo et al., 2002)

Mimetic pressure, a key driver of digital transformation (DT), arises from the recognition and adoption of DT by competitors (Kuo et al., 2022) Organizations witness the competitive advantage gained by rivals through DT and believe in the potential benefits of imitation (Shim et al., 2018; Kuo et al., 2020) Institutional theory supports this influence, highlighting the strong impact of mimetic forces on technology adoption (Sherer et al., 2016) However, some research claims the irrelevance of external pressures in specific digital technology adoption decisions, suggesting a limited impact of the external environment (Omrani et al., 2022).

Considering the landscape of DT in Vietnamese SMEs, the readiness of business enterprises to start DT is still at a low level; moreover, the ratio of SMEs that fail to implement and commit to DT in comparison to successful ones is a big gap (Chuc, et al.,

Chaper 3: Research design

We developed the questionnaire that includes 11 main constructs: government pressure, competitor pressure, customer pressure, leadership, financial resource, human resource, digital technology, commitment to digital transformation, and 3 constructs belonging to controlled variables consisting of industry, ownership, and international trade We opted for e-questionnaire; hence, it was developed on Microsoft Forms with 3 main sessions The first session is about a brief introduction and the second part includes information about the Institutional pressure, internal resources, and alignment of Vietnamese SMEs to commit to digital transformation The last part includes basic business information

Following a rigorous review, an expert identified errors in the Operation and Strategy pre-test questionnaire, including unclear content and misleading items After corrections were made, the questionnaire was deemed clear and easy to answer To gather responses, the survey was distributed online from March to early April 2024 Targeted individuals with expertise in digital transformation were reached through company email lists and social media platforms like Facebook and Zalo Respondents were briefed on the study's purpose and provided a link to the questionnaire via email or social media groups Additionally, telephone outreach was conducted to connect with leadership businesses and provide direct support The survey's reach was further expanded through participation in two business fairs: "VietBuild Hanoi Exhibition 2024" and "Hanoi City."

Key Industrial Products Fair 2023” which were organized in Hanoi capital to directly discuss and exchange information relating to problems and obstacles around implementing digital transformation in business processes to get more insights from business In addition, in order to reach respondents, I have received support from members in a forum relating to the manufacturing industry, named “MesLab-Industrial content”

In general, the selection of participants was likely intended to gather feedback or insights from individuals who had relevant experience or knowledge of the subject in the survey

This was done to ensure that the collected data would be meaningful for the research or study objectives The participants were free to respond without any rewards for their answers

To evaluate latent variables, we used the previous research to filter appropriate questions in the Vietnamese context Specifically, government pressure is derived from Huo et al

Factors influencing digital transformation in manufacturing include competitor pressure (Liang et al 2007; Nair and Prajogo 2009; Dubey et al 2016, Lambrou et al 2019, Huo et al 2013), customer pressure (Huo et al 2013, Yang 2018, Zhu et al 2013), human resources (El Sawy et al 2016; Lerch and Gotsch 2015; Taylor 2017), financial resources (Chwiłkowska-Kubala et al 2023), digital manufacturing technology (Vinodh et al 2009, Hopkinson et al 2006; Zuehlke 2010, Horbach et al 2011, Wadhwa 2012; Zelbst et al 2012), leadership (Weber, E., Büttgen, M., & Bartsch, S.,2022), and commitment to digital transformation (Gill and VanBoskirk 2016; McLaughlin 2017; Alvarenga et al 2020; Cavalcanti et al 2022) The study employed a five-point Likert scale, ranging from Strongly Disagree (1) to Strongly Agree (5), to gauge responses.

Further, data were analyzed using SPSS version 26, a multivariate technique that estimates interrelated dependence relationships (Henseler et al., 2009; Hair et al., 2014) The factors and measurement items for business commitment to digital transformation used in the questionnaire are summarized in Table 1

Evaluation of the statements between 1-5 scale

1 The government guides and encourages businesses to digitally transform

Adapted from Huo et al

2 Industry associations guide and encourage businesses to digitally transform

3 International organizations in the industry guide and encourage businesses to digitally transform

1 Our main competitors who have undergone digital transformation have greatly benefited

2 Others favorably perceive our main competitors who have undergone digital transformation within the same industry

3 Our competitors have undergone a digital transformation and are therefore more competitive

4 Our main competitors who have undergone digital transformation are favorably perceived by the customers

1 Customers expect us to digitally transform production/service systems

2 The customer requested that we convert the number as a condition of placing the order

3 Our digital transformation needs to meet customers' information and technology standards

Adapted from Huo et al (2013);

1 Digitalization of the operating environment is easily accepted by our employees

2 Digital skills development is supported and promoted in our company

3 Our employees are well trained in digital tools usage

El Sawy et al (2016); Lerch and Gotsch (2015); Taylor

1 Our company has available funding sources for implementing digital transformation

2 Our company has available financial possibilities for implementing digital transformation

1 The business uses advanced processes such as laser and waterjet cutting, 3D printing, and high- precision technologies

2 Enterprise evolution towards the "factory of the future" (e.g smart/digital factories/enterprises, adaptive manufacturing/service systems, scalable manufacturing/services)

3 Businesses implementing process automation programs (e.g., automated machine tools and handling/transportation equipment, robots; search engines, automated data mining)

4 Enterprises implement programs to track and find products/parts/information (for example, via barcodes, RFID technology; and Technologies to monitor and evaluate service quality)

Adapted from Vinodh et al., (2009);

1 Leaders recognize that digital transformation is important and determines the competitive strength of the business

2 Leaders proactively seek digital transformation opportunities inside and outside the business

Adapted from Weber, E., Büttgen, M., & Bartsch, S

1 In my organization, some policies prioritize the use of information technologies

Transformation 2 My organization is prepared for the evolution of digital transformation

3 Our organization's change example can promote other digital transformation projects

4 Organizational leadership is prepared for digital change

This study examined the commitment to digital transformation among Vietnamese businesses, focusing on leadership perspectives.* Adhering to established research guidelines (Borg & Gall, 1979; Cohen et al., 2000), a sample size of 30 was ensured.* A total of 95 responses were collected, of which 85 were considered valid (89.47%).

Figure 3 shows that 36.47% of participants are managers, 25.88% in total of 85 respondents are Directors, 16% of CEOs, and around 4% of respondents are from upper management level like Chairman of the board, CCO, and Founder Table 2 also indicates the respondents’ information to those who participated in the survey

The respondents from the mentioned two industries including manufacturing and service played a part in the survey Specifically, figure 2 shows that the light industry accounts for 39%, 23% for retailing, and 15% for heavy industry The others are allocated within smaller proportions

Chapter 4: Results

Exploratory factor analysis (EFA) using SPSS validated the hypothetical model with 25 measurement items for seven factors determining business commitment to digital transformation Standard factor loadings exceeded the recommended 0.5 for all items except financial resources and leadership, which were eliminated due to loadings below 0.4 After removing these variables, the revised EFA analysis showed a strong KMO coefficient of 0.854 and a statistically significant Bartlett's test (p=0.000), while Cronbach values above 0.7 indicated satisfactory reliability for all factors.

Table 3: KMO Coefficient and Bartlett’s test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .854

Table 4: Results of the confirmatory factor analysis, the corresponding factor loadings, and reliabilities of the Model

Factors/Items Mean SD Factor loadings Cronbach’s alpha

Figure 4: Framework after eliminating Financial Resource and Digital Leadership

To evaluate model fit accurately, ANOVA analysis of variance tables is employed Table

7 shows the F-test results to evaluate the appropriateness of the regression model The sig value is 0.000 < 0.05; hence, the regression model is appropriate The adjusted R-squared value of 0.67 shows that the independent variables included in the regression analysis affect 67% of the variation in the dependent variable In addition, the DW value is 1.703, within the range of 1.5 to 2.5, so the result does not violate the assumption of first-order serial autocorrelation (Yahua Qiao, 2011)

Std Error of the Estimate Durbin-Watson

1 830 a 690 670 57062 1.703 a Predictors: (Constant), MEAN_CusP, MEAN_HR, MEAN_GP,

MEAN_DT, MEAN_CP b Dependent Variable: MEAN_CDT

Total 82.894 84 a Dependent Variable: MEAN_CDT

36 b Predictors: (Constant), MEAN_CusP, MEAN_HR, MEAN_GP,

The SPSS findings show that government pressure positively and significantly impacts business commitment to digital transformation (β = 0.193, t =2.446, p = 0.17 < 0.05) Digital technology similarly has a positive and significant impact on business commitment to digital transformation (β = 0.212, t =2.635, p = 0.010 0.05) between the two tested groups were not significant

Table 8: Summary of the Industry for Business Commitment to Digital

Measurement factors Industry Sig Sig.(2- tailed)

4 Business commitment to digital transformation for international trade

This study analyzed 57 enterprises (67.06%) engaged in international trade and 28 (32.94%) in domestic trade Independent sample t-tests revealed that enterprises involved in international trade demonstrate higher commitment to digital transformation across all five factors However, no significant differences were observed in governance pressure, competitor pressure, or human resources between the two groups.

However, it is very important to note that there are significant differences between enterprises with and without international trade relating to Customer pressure and Digital technology For customer pressure, enterprises with international trade are under huge pressure from customers rather than enterprises with domestic trade due to p-value = 0.033

< 0.05, and the mean score is higher with 3.69 > 3.13 However, customer pressure doesn’t significant impact to business commitment to digital transformation in full model Hence, this result is rejected

Related to Digital technology, the p-value is 0.011 < 0.05 and the mean score is 3.87, this shows that enterprises with international trade are under huge pressure to adopt digital technology rather than enterprises without international trade In other words, there are significant differences relating to international trade between enterprises under adopting digital technology

Table 9: Summary of the International Trade for Business Commitment to Digital Transformation

Measurement factors International trade Sig Sig.(2- tailed)

5 Business commitment to digital transformation for different ownership

An independent sample t-test revealed that the mean scores for foreign enterprises were typically higher than for Vietnamese enterprises across all contributing factors towards a business commitment to digital transformation However, the differences between the two groups were not statistically significant, with p-values ranging from 0.1 to 0.9, all greater than 0.05.

Table 10: Summary of the Ownership for Business Commitment to Digital

Measurement factors Ownership Sig Sig.(2- tailed) Vietnamese enterprise Foreign enterprise

Chapter 5: Discussion and Implications

1.1 Competitor pressure and business commitment to digital transformation

Our result points out that competitor pressure does not have a significant impact on Vietnamese business commitment to digital transformation, and this finding is in line with Omrani et al (2022) Chong and Chan (2012) argue that digital solutions are more cost- effective than traditional ones Those who do not follow the trend risk falling behind their competition Omrani et al., (2022) further demonstrate that adopting digital technology is viewed as a strategy for increasing a company's competitiveness, particularly if rivals are doing so In other words, scholars agree that implementing digital transformation through the use of digital technology will increase business competitiveness, and those under competitor pressure will exhibit mimetic behaviors as a result of their perception of competitor success in terms of digital technology adoption Major evidence was discovered in our research Our study results show that the absence of domestic competitive pressure leads to Vietnamese SMEs without international trade not having enough motivation to develop their internal resources needed in fostering the digital transformation process.Specifically, according to World Bank research (Cirera et al, 2021), just a tiny proportion of Vietnamese enterprises have initiated serious digital transformation, with the industrial sector faring the poorest Our research investigates that Vietnamese businesses do not truly demand to execute digital transformation Therefore, they will tend to not commit to the digital transformation process seriously However, enterprises with international trade are under more huge pressure from foreign customers and adopting digital technology than enterprises without international trade In other words, Vietnamese enterprises with international trade implement the digital transformation process thanks to pressures and encouragement of international and national governance One further factor might be that competitive pressures have not had a profound impact on company decisions related to nurturing and executing digital transformation processes, although practically all

43 of the country's SMEs are aware of the digital transformation demands and advantages The difficulty is that around 60% of Vietnamese SMEs lack the necessary resources to incorporate digital technology into their business processes (PwC, 2021) Problems due to employees' lack of digital competencies, and organizational culture have all contributed to overshadow rival pressure to accelerate the digital transformation process In other words, one of the reasons why competitive pressure has less influence is due to technological and organizational factors

1.2 Customer pressure and business commitment to digital transformation

According to our findings, business commitment to digital transformation is not much impacted by consumer pressure; this conclusion is consistent with that of Omrani et al

(2022) Our results provide one explanation Against the backdrop of globalization, we found that Vietnamese SMEs engaged in international commerce will face significant pressure from national and international industry associations to use digital technology

In the digital realm, customer expectations play a pivotal role in shaping business values While the importance of aligning digital technologies with organizational identity and customer preferences is emphasized, external pressures may compel businesses to adopt digitalization despite potential misalignment with company goals and customer aspirations Amidst the uncertainties and constant change inherent in digital transformation, Vietnamese SMEs grapple with the potential costs and benefits Survey results indicate customer pressure, but its impact on Vietnamese businesses remains limited Notably, the perceived influence of digital transformation on customer purchasing decisions is moderate, suggesting a need for businesses to navigate these challenges effectively.

44 others do not.This demonstrates that, at this point in time, the elements or demands originating from consumers that influence the corporate decision-making process about the enhancement and execution of digital transformation will not have a major impact With a mean score of 3.67 ~ 4.0 (Agree), Vietnamese consumers' expectations are still met, and they want enterprises to carry out the digital transformation process as quickly as feasible The survey's results also indicate that the businesses are aware of the importance of satisfying customers' demands and desires in the digital age For example, the customer's demand for quality assurance necessitates the traceability of commodities and intermediate products throughout the entire production process (Liere-Netheler et al., 2018) because they are paying for the product they are purchasing Transparent traceability meets this demand Our survey highlights data security and customer information standards from the perspective of Vietnamese customers The customer pressure variable's item 3 illustrates this, with a mean score of around 4 over 5 It is crucial to remember that Vietnamese SMEs should be able to effectively manage customer relationships and meet the demands of their clients Long-term, nevertheless, one of the main goals should be to digitize company operations in order to improve the customer experience According to Yang et al (2021), companies may learn information from their client base, which makes employing a data mining system to manage customer interactions essential A product line's overall quality may be raised and the effects of a product recall can be reduced by using a traceability system

The research findings underscore the great correlation of governance pressure and DT commitment The finding implies that not only governance pressure are the main driver forcing organizations to introducing novel technologies into operation (Liang, et al., 2007; Krüger & Teuteberg, 2016; Kuo, et al., 2022), but these pressures also play a crucial role in influencing Vietnamese enterprises to keep up with the DT journey Vietnam's digital transformation is still at a low speed and falls behind compared to other nations in the same region (Ghi et a., 2022) Therefore, in response to the trend of DT and reaching the national

45 goals of DT in 2030 “National Digital Transformation Program to 2025 with orientation to 2030”: By 2025, the digital economy in Vietnam must reach about 20% of GDP and by

2030, reach about 30% GDP The government of Vietnam and the Vietnam Association of Small and Medium Enterprises (VINASME) have been planning to introduce various regulations and policies to support SMEs in DT (Chuc & Anh, 2023) The Ministry of Planning and Investment (MPI) has launched a program called “Supporting Enterprises”

DT from 2021 to 2025 helping Vietnamese enterprises to boost productivity, resilience and global reach The Vietnam Software and IT Services Association (VINASA) has a digital transformation guideline framework in 26 fields Government and industry associations offer SMEs who are often constrained by limited technological and human resources and flexibility in DT (Indrawadi, 2020; Ta, et al., 2023; Chuc & Anh, 2023; Leso, et al., 2023) with a wide range of assistance and support such as financial support, information infrastructures, and technical managerial training and technology programs (Doh & Kim,

2014) This is why businesses under the governance pressure are able to commit to DT in the long-run

1.4 Customer Pressure and Digital technology under control of International trade toward Vietnamese enterprise

According to our research, Vietnamese businesses that trade internationally will face greater pressure to use digital technology and non-significant pressure from both domestic and overseas customers than businesses that don't Walsh, J et al., 2023 noted that because the digital economy-fueled by technical advancement—has drastically impacted international commerce and altered business models internationally, Vietnamese firms must adjust to these changes, which may be difficult and resource-intensive It makes sense that Vietnamese companies who engage in international commerce compete with companies all over the world, not only domestically, particularly in industrialized nations where digital transformation is prevalent Vietnamese businesses are under a great deal of pressure to provide the high-quality goods and services that this global competition expects

Businesses are under enormous pressure from government regulations and industry associations about exporting operations as a result of environmental globalization They have to abide by several international laws and rules Cybersecurity and data privacy are two examples of these complicated policies in the digital space As a result, using digital technology to handle data becomes increasingly crucial The amount of cross-border data utilized in commerce has increased dramatically, according to Walsh, J et al., 2023 For Vietnamese firms, maintaining this data, guaranteeing its security, and using it for decision- making processes might be difficult Hence, pressures from adopting digital technology for enterprises are necessary

The result reveals that DT commitment and digital technology exhibits a significant relationship In other words, the outcome unveils the pivotal role of digital technologies in fostering and enhancing DT in organizations aligning with the existing body of literature that emphasizes the underlying role of digital technologies in driving DT (Ta & Lin, 2023; Indrawati, et al., 2020) Chin, et al., (2023) suggest that digital technologies are being applied widely in various sectors, as new technologies have always been at the forefront of digital industrializations However, it is said that the technology adoption in SMEs is low due to the high cost and inadequate budget (Mishrif & Khan, 2023) Dao (2024) shows that enterprises are facing obstacles in introducing new technologies, for specific lack of information on digital technology (38,9%), high cost of applying digital technology (55,6%), and lack of expertise to cope with new technologies (32.3%) These figures illustrate that new technologies, which are supported to bring opportunities for businesses, are hindering Vietnamese enterprises to continue with the DT journey Due to the lack of technological competencies and unavailable budget to invest in new technologies; SMEs are not fully really aware of the potential those technologies might offer As a result, they often fall short into actual implementation (Chuc & Anh, 2023) Thus receiving support from government and other organizations within industries is essential to get funds and access to a variety of information about new technologies, namely knowing which one to

47 invest in and how to explore the full potential of them might motivate businesses to keep up with DT

For successful digital transformation (DT), organizations must complement digital technologies with other factors (Caputo et al., 2021) Despite significant investments, companies that fail to integrate these technologies into their business strategies often face lackluster results (Tabrizi et al., 2019) To enhance DT commitment, organizations should consider incorporating human resources (Kane et al., 2019) and governance pressures By integrating these elements, enterprises can demonstrate a stronger commitment to DT and achieve improved outcomes.

Based on existing literature related to drivers of DT, we anticipated that human resources are positively influenced on DT commitment Chwiłkowska-Kubala, et al., 2023; Hang,

2021) The finding implies that human resources play an important role in the DT commitment of Vietnamese Along with the implementation of new technologies, DT requires people to actively participate in the process The need of training people to adapt to the trend of DT and know-how to use new technologies are a key element to remaining

DT effectively within organizations (Chwiłkowska-Kubala, et al., 2023; Hang, 2021) DT in Vietnam enterprises are still at the early stages of implementation (Chuc & Anh, 2023) Businesses are new to DT and they do not fully understand what DT actually is (Yannick, et al., 2021) Employees are reluctant to incorporate technologies because they are afraid those technologies will take over their jobs (Griep, et al., 2021; Sundermeier, 2022) People in organizations are not fully welcome and integrate in DT resulting in reducing efficiency and productivity which in turn might force organizations to stop their DT process Therefore, ensuring the whole organization is conscious of the opportunities DT offers in the long run in order to overcome the challenges that come at the beginning The finding not only strengthens the fact that human role drives DT adoption (Fenech, 2019; Hang,

2021), but also reveals that human resources remain consistent during the whole process New and advanced digital technologies are evolving continuously, requiring organizations to update and learn if they want to enhance efficiency, effectiveness and retain

The Questionnaire

SURVEY IN BUSINESS COMMITMENT TO DIGITAL TRANSFORMATION

Dear Sir/Madam, Senior Leader/Manager of the Enterprise,

We are a research group of the International School, Hanoi National University with members including:

• Ph.D Tran Cong Thanh - Lecturer of Operations Management and Entrepreneurship

- Head of Management Team - Faculty of Management Economics

• Student Tran Lam Son - International Business major

• Student Hoang Minh Hang - International Business major

We are conducting research on factors that promote digital transformation in businesses in Vietnam Digital transformation in manufacturing and services is a process of manufacturing/service innovation based on the combination of modern information, communication, production/data mining technologies and processes Adapt to new technologies to improve production/service productivity and supply chain In the current business environment, with pressure from the Government, domestic and international markets, as well as limited resources of small and medium-sized companies, business leaders face many difficulties Difficulties or challenges in making a decision to commit to digital transformation Our research therefore wants to determine what are the factors that motivate manufacturing/service businesses to decide to implement digital transformation in the current business context in Vietnam and internationally

We hope that you will participate in the study by filling out the survey below It is expected that filling out the survey will take 15 minutes Participation in the study is completely voluntary and the information provided to us will be strictly confidential The identities of the surveyed people and the company will not be disclosed in any published documents

Research findings are utilized for academic objectives, encompassing instruction, professional development, and scholarly investigations within university settings Commercial applications are excluded Upon expressing interest, a comprehensive report on the specified topic can be provided upon request.

We look forward to receiving your cooperation and support

Evaluation of the statements between

1-5 scale (1: Very disagree - 5: Very agree)