Factors Affecting Digital Transformation of Agriculture Enterprises in Vietnam: A TOE Framework Approach

Abstract

Digital transformation is becoming increasingly essential for agricultural enterprises in Vietnam as they navigate technological disruption and heightened market competition. This study explores the key factors influencing the digital transformation of Vietnamese agricultural enterprises, focusing on three core determinants derived from the Technology–Organization–Environment (TOE) framework: technological readiness, top management support, and competitive pressure. Based on survey data collected from 300 agricultural firms across various sub-sectors, the research employs structural equation modeling (SEM) to evaluate the relationships between these factors and the degree of digital transformation adoption. The findings demonstrate that all three factors significantly impact digital transformation efforts, with technological readiness and top management support exerting the strongest influence. Competitive pressure also contributes notably, acting as an external driver of change. The results offer practical implications for business leaders and policymakers seeking to enhance the digital capabilities of agricultural enterprises by improving internal preparedness and responding proactively to market dynamics.