Determinants of Digital Transformation in the Organization: Empirical Evidence from the Vietnam Banking Sector

Abstract

This study examines the key factors influencing digital transformation within Vietnam’s banking sector. To achieve this objective, the authors employ a quantitative approach that integrates Structural Equation Modeling (SEM) and fuzzy-set Qualitative Comparative Analysis (fsQCA) to analyze data collected from 450 banking employees across Vietnam. The findings reveal that factors such as technological infrastructure, leadership capability, employee competency, digital transformation strategy, and digital pressure significantly enhance a bank’s digital transformation capability (DTC), which in turn strongly predicts the overall level of digital transformation (LDT). However, factors such as risk management, financial capacity, organizational culture, and government support showed limited or negative influence. Furthermore, the study extends the linear findings by identifying multiple causal configurations that lead to a high level of digital transformation capability (DTC), highlighting the critical roles of strategic flexibility and internal readiness. The findings offer practical implications for banking executives and policymakers while advancing theoretical development of digital transformation through an integrated, context-specific model tailored to emerging markets.