Digital Capabilities and Sustainable Competitive Advantages: The Case of Emerging Market Manufacturing SMEs

This study investigates the impact of digital capabilities on sustainable competitive advantages among manufacturing small and medium-sized enterprises (SMEs) in Vietnam, an emerging market, through the lens of the dynamic capabilities view. The research examines the mediating role of digital absorp...

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Main Authors: Dinh Van Hoang, Nguyen Thi Hien, Han Van Thang, Phan Nguyen Truc Phuong, Trang Thi-Thuy Duong
Format: Article
Language:English
Published: SAGE Publishing 2025-04-01
Series:SAGE Open
Online Access:https://doi.org/10.1177/21582440251329967
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author Dinh Van Hoang
Nguyen Thi Hien
Han Van Thang
Phan Nguyen Truc Phuong
Trang Thi-Thuy Duong
author_facet Dinh Van Hoang
Nguyen Thi Hien
Han Van Thang
Phan Nguyen Truc Phuong
Trang Thi-Thuy Duong
author_sort Dinh Van Hoang
collection DOAJ
description This study investigates the impact of digital capabilities on sustainable competitive advantages among manufacturing small and medium-sized enterprises (SMEs) in Vietnam, an emerging market, through the lens of the dynamic capabilities view. The research examines the mediating role of digital absorptive capacity and the active role of digital leadership in this relationship. The research used both qualitative and quantitative research, in which a two-stage quantitative approach was employed, using partial least squares-structural equation modeling (PLS-SEM) and artificial neural network (ANN) on data collected from 314 firms. The results reveal a positive correlation between digital capabilities and sustainable competitive advantages, with digital absorptive capacity acting as a positive mediator. The study also found positive relationships between digital capabilities and digital absorptive capacity, as well as between digital absorptive capacity and sustainable competitive advantages. Digital leadership was identified as an active factor positively affecting digital capabilities, digital absorptive capacity, and sustainable competitive advantages, with digital capabilities playing a positive mediating role in these relationships. By exploring the roles of digital absorptive capacity and digital leadership, this study offers novel contributions to understanding a firm’s digital capabilities and sustainable competitive advantages. The findings provide practical implications for managers of emerging market manufacturing SMEs, such as those in Vietnam, who aim to enhance sustainable competitive advantages by leveraging digital capabilities.
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institution OA Journals
issn 2158-2440
language English
publishDate 2025-04-01
publisher SAGE Publishing
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series SAGE Open
spelling doaj-art-395eba61593445668bbfc423bd320e2c2025-08-20T01:55:40ZengSAGE PublishingSAGE Open2158-24402025-04-011510.1177/21582440251329967Digital Capabilities and Sustainable Competitive Advantages: The Case of Emerging Market Manufacturing SMEsDinh Van Hoang0Nguyen Thi Hien1Han Van Thang2Phan Nguyen Truc Phuong3Trang Thi-Thuy Duong4Foreign Trade University, Hanoi, Viet NamForeign Trade University, Hanoi, Viet NamForeign Trade University, Hanoi, Viet NamHo Chi Minh City University of Technology and Education, Ho Chi Minh City, Viet NamUniversity of Economics Ho Chi Minh City, Ho Chi Minh City, Viet NamThis study investigates the impact of digital capabilities on sustainable competitive advantages among manufacturing small and medium-sized enterprises (SMEs) in Vietnam, an emerging market, through the lens of the dynamic capabilities view. The research examines the mediating role of digital absorptive capacity and the active role of digital leadership in this relationship. The research used both qualitative and quantitative research, in which a two-stage quantitative approach was employed, using partial least squares-structural equation modeling (PLS-SEM) and artificial neural network (ANN) on data collected from 314 firms. The results reveal a positive correlation between digital capabilities and sustainable competitive advantages, with digital absorptive capacity acting as a positive mediator. The study also found positive relationships between digital capabilities and digital absorptive capacity, as well as between digital absorptive capacity and sustainable competitive advantages. Digital leadership was identified as an active factor positively affecting digital capabilities, digital absorptive capacity, and sustainable competitive advantages, with digital capabilities playing a positive mediating role in these relationships. By exploring the roles of digital absorptive capacity and digital leadership, this study offers novel contributions to understanding a firm’s digital capabilities and sustainable competitive advantages. The findings provide practical implications for managers of emerging market manufacturing SMEs, such as those in Vietnam, who aim to enhance sustainable competitive advantages by leveraging digital capabilities.https://doi.org/10.1177/21582440251329967
spellingShingle Dinh Van Hoang
Nguyen Thi Hien
Han Van Thang
Phan Nguyen Truc Phuong
Trang Thi-Thuy Duong
Digital Capabilities and Sustainable Competitive Advantages: The Case of Emerging Market Manufacturing SMEs
SAGE Open
title Digital Capabilities and Sustainable Competitive Advantages: The Case of Emerging Market Manufacturing SMEs
title_full Digital Capabilities and Sustainable Competitive Advantages: The Case of Emerging Market Manufacturing SMEs
title_fullStr Digital Capabilities and Sustainable Competitive Advantages: The Case of Emerging Market Manufacturing SMEs
title_full_unstemmed Digital Capabilities and Sustainable Competitive Advantages: The Case of Emerging Market Manufacturing SMEs
title_short Digital Capabilities and Sustainable Competitive Advantages: The Case of Emerging Market Manufacturing SMEs
title_sort digital capabilities and sustainable competitive advantages the case of emerging market manufacturing smes
url https://doi.org/10.1177/21582440251329967
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