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Despite these important contributions, three limitations remain evident in the
existing literature. First, many studies in Vietnam still treat digital transformation and
sustainable development as parallel topics rather than examining them within a unified
analytical framework. Second, even where both themes appear in the same discussion,
the relationship between them is often presented descriptively, with insufficient
attention to the organizational mechanisms through which digital transformation may
produce economic, social and environmental outcomes. Third, there is still limited
context-specific evidence on Vietnamese SMEs during the period 2021–2025, which is a
particularly important period marked by post-pandemic restructuring, stronger
digitalization pressure and increasing sustainability expectations from markets and policy
institutions.
This study addresses these gaps in three ways. First, it integrates digital
transformation and sustainable development into a single analytical framework rather
than treating them as separate themes. Second, it interprets the relationship between the
two through the combined lenses of TOE and dynamic capability theory, thereby moving
beyond descriptive reporting toward mechanism-based explanation. Third, by focusing on
SMEs in Vietnam during the 2021–2025 period, the study contributes empirical evidence
to a field in which domestic research remains relatively limited and analytically
underdeveloped.
2.1.2. Theoretical foundation
Digital transformation in this study is understood as the process through which
firms integrate digital technologies into their strategies, structures and operations in
order to reshape value creation, improve organizational responsiveness and adapt to
changes in the business environment. This interpretation is consistent with Vial (2019),
who argues that digital transformation goes beyond isolated technological adoption and
involves a reconfiguration of organizational processes and value-creation pathways.
Sustainable development at the firm level is approached through the Triple Bottom
Line perspective introduced by Elkington (1997). According to this perspective, business
performance should not be assessed solely in terms of short-term financial results, but
also in relation to social contribution and environmental responsibility. In the context of
SMEs, this means that digital transformation should not be evaluated only by its effect on
cost reduction or productivity improvement, but also by whether it contributes to better
governance, more transparent stakeholder relations, reduced waste and more
responsible business practices.
To explain the conditions shaping digital transformation, the study adopts the TOE
framework developed by Tornatzky and Fleischer (1990). This framework argues that
innovation adoption within firms is influenced by three groups of factors: technological
context, organizational context and environmental context. The technological context
refers to the availability, suitability and usefulness of technologies. The organizational
context includes leadership commitment, human resources, structure and internal
resources. The environmental context comprises market competition, customer
expectations, supply-chain requirements and institutional support. The strength of TOE
lies in its ability to explain why digital transformation is not determined by technology
alone, but by the interaction between internal readiness and external pressures.
The study also draws on dynamic capability theory proposed by Teece (2007).
Dynamic capabilities refer to a firm’s ability to sense opportunities and threats, seize
opportunities through timely decisions and coordinated action, and reconfigure internal

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