Digital platform and smes performance: The roles of intellectual capital and environmental dynamism’s effect.

Abstract

The purpose of this research is to shed light on the connection between firm performance (FP) and the digital platform’s capability (DPC) in Vietnamese small and medium-sized businesses (SMEs) and take into account the role of intellectual capital (IC) as well as the moderation impact of environmental dynamism. Using structural equation modeling (SEM), the authors investigated the suggested hypotheses using 254 high-quality survey samples from SME managers and directors. According to our findings, a high level of usability of digital platforms improves SME performance, and all three types of IC, namely organizational capital (OC), human capital (HC), and relational capital (RC), mediate the relationship between DPC and SME performance. RC, on the other hand, has a negative impact on FP. Additionally, we discovered that environmental dynamism (ED) negatively modifies the relationship between DPC and IC. This is the first study to investigate the link between DPC and FP. The results of this study show that DPC is an effective baseline driver for promoting high-performing SMEs. The digital platform is crucial to many industries because it enables organizations to gather information, take more flexible strategic actions, and navigate well while minimizing risks. Therefore, SME businesses with effective digital platform control will have a competitive edge and improve business performance. Managers can rely on this favorable impact to seize chances to enhance DPC through people, knowledge, and relationships to drive outstanding growth in FP. As a result, this article and associated research will motivate SMEs in Vietnam to swiftly implement digital platforms and improve their present digitalization skills to boost corporate performance.