Impact of digital transformation on business performance: Empirical evidence from Vietnam listed food manufacturing enterprises

Abstract

This research examines the relationship between digital transformation and the performance of food manufacturing enterprises in Vietnam using a sample of 20 food manufacturing enterprises listed on the Vietnamese stock market from 2013 to 2023. A composite digital transformation index, capturing three key dimensions—digitization, digitalization, and comprehensive digital transformation—is constructed through content analysis of annual reports and quantified using Python-based text mining techniques to measure the extent of digital engagement. Firm performance is proxied by ROA and ROE, and regression analyses are conducted using OLS, FEM, and REM, with several financial and operational control variables included. The empirical results indicate that digital transformation exerts a positive and statistically significant effect on both ROA and ROE. However, the magnitude of this effect is moderated by firm size; larger enterprises tend to experience reduced short-term gains, likely due to higher implementation costs and greater organizational complexity. The study provides empirical evidence in the context of Vietnam and highlights the role of digital transformation, not only as a supporting tool but also as a strategic lever to enhance business performance. The research results are the basis for proposing solutions and recommendations to strengthen digital capabilities and improve the business performance of food manufacturing enterprises in Vietnam.