THE IMPACT OF DIGITAL TRANSFORMATION ON BUSINESS PERFORMANCE IN VIETNAMESE FOOD ENTERPRISES: THE MEDIATING ROLE OF ORGANIZATIONAL READINESS

Abstract

In the context of digital transformation becoming a strategic priority, understanding how it translates into business performance is particularly important for Vietnamese food enterprises, which face strong pressures related to quality, traceability, supply chain coordination, and regulatory compliance. However, prior studies have not reached a clear consensus on whether digital transformation directly improves firm performance or operates through intermediate organizational conditions. This study examines the effects of digital transformation on financial and non-financial performance and investigates the mediating role of organizational readiness for digital transformation. Survey data from 263 Vietnamese food enterprises were analyzed using a two-stage PLS-SEM approach. The results show that digital transformation has positive and statistically significant effects on organizational readiness, financial performance, and non-financial performance. Organizational readiness also positively affects both dimensions of business performance and serves as a complementary mediator in these relationships. These findings suggest that the value generated by digital transformation depends not only on technology investment but also on the organization’s ability to absorb, coordinate, and implement digital change.