THE IMPACT OF DIGITAL TRANSFORMATION ON THE COMPETITIVE STRATEGY OF SMALL AND MEDIUM-SIZED ENTERPRISES IN BINH DINH: MULTIDIMENSIONAL ANALYSIS AND FRAMEWORK OF SOLUTIONS

Abstract

This study investigates the impact of digital transformation (DT) on the competitive strategy of small and medium-sized enterprises (SMEs) in Binh Dinh through a multidimensional analysis approach. The results reveal that technological factors (ERP, e-commerce, AI) exert the strongest influence on competitive capacity (β=0.42), with digital human resources playing a critical mediating role, accounting for 38.2% of business performance. However, DT readiness varies significantly across sectors: tourism enterprises lead the way (78%) with a short payback period (14.2 months), while agricultural enterprises face greater challenges due to infrastructure and capacity limitations (only 32% adoption). Major barriers include a shortage of digital personnel (73%), resistance to change (60%), high implementation costs (53%), and lack of policy support (47%). To accelerate DT, the study proposes a 4P solution framework focusing on: (1) building low-cost technology platforms, (2) optimizing business processes, (3) training human resources, and (4) improving policy support. These findings not only contribute to the theoretical understanding of digital transformation but also offer practical solutions for SMEs and local policymakers.