Page 329 - ISC PROCEEDINGS 21.4

institutional environment has not yet become a sufficiently strong enabling force in day-
to-day digital transformation processes.
From the TOE perspective, the environmental context is therefore characterized by
asymmetry: pressure is high, but support is weaker. Competition and customer
expectations act as strong external push factors, while institutional assistance does not
yet appear equally effective in reducing risks, costs and uncertainty for SMEs. This
asymmetry has important implications. When digital transformation is driven mainly by
market pressure, firms may prioritize short-term operational responses aimed at survival
and competitiveness. By contrast, when digital transformation is supported by a stronger
institutional ecosystem, firms are more likely to invest in deeper and more strategic forms
of transformation. The results of this study suggest that Vietnamese SMEs are currently
operating closer to the first scenario.
This also helps explain why digital transformation may produce uneven
sustainability outcomes. If the dominant external driver is competition rather than
coordinated policy support, SMEs are more likely to focus first on efficiency and market
expansion, while social and environmental integration may remain secondary.
3.3. Relationship between digital transformation and sustainable development
outcomes

Figure 3. SMEs’ evaluation of the relationship between digital transformation and
sustainable development
Figure 3 shows that SMEs perceive the relationship between digital transformation
and sustainable development relatively positively, with mean scores ranging from 4.01 to
4.11. At a general level, this indicates that most firms do not regard digital transformation
merely as a technological or operational shift, but also as something that can contribute
to broader enterprise development. Nevertheless, the distribution of scores reveals that
not all dimensions of sustainability are perceived equally strongly.
The most highly rated outcome is improving operational efficiency and reducing
costs, with a mean score of 4.11. This indicates that the economic benefits of digital
transformation are the most visible and immediate for SMEs. Digital tools help firms
shorten transaction time, reduce intermediary costs, improve internal coordination and
raise productivity. These are direct and tangible effects, which explains why they are most
strongly recognized.
The second highest result is expanding markets and improving competitiveness,
with a score of 4.08. This further confirms that digital transformation is understood by

328