The Impact of Digital Transformation on the Competitive Advantage of Small and Medium-sized Enterprises: A Perspective from Senior Managers

Chu The Tiep

Abstract

This study aims to elucidate the impact of digital transformation on the competitive advantage of small and medium-sized enterprises (SMEs) in Vietnam, based on the perspectives and lived experiences of senior managers. Adopting a qualitative research method with a multiple case study strategy, data were collected through 16 semi-structured in-depth interviews with leaders and analyzed thematically. The results indicate that digital transformation is not merely a cost- optimization tool but has become a strategic lever that redefines competitive advantage, shifting from price-based competition to competition based on speed, customer experience, and flexibility. Key impacts include: enhancing operational efficiency through automation, personalizing customer relationships via data analytics, enabling data-driven decision- making, and facilitating the experimentation of new business models. In terms of practical implications, the study emphasizes that the success of digital transformation depends more on the mindset shift of leadership and organizational culture than on technology. It also suggests that SMEs should prioritize projects with a clear return on investment (ROI) and that policymakers should provide more substantive support in consulting and training. The originality of this research lies in its use of an interpretive approach to deeply explore the perceptions of managers within an emerging economy, thereby providing a practical, human- centric perspective that complements previous quantitative studies.

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