DIGITAL CAPABILITIES AND COMPETITIVE ADVANTAGE IN THE CONTEXT OF TECHNOLOGICAL UNCERTAINTY: EVIDENCE FROM EMERGING MARKET SMEs

Dinh van Hoang, Hoang Anh Duy (), Dao Thu Thuy (), Do Truong Giang (), Vu Nguyen Minh Chau (), Nguyen Le Minh Ngoc () and Vu Huong Quynh ()
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Dinh van Hoang: Vietnam – Japan Institute for Human Resources Development, Foreign Trade University, 91 Chua Lang Street, Dong Da District, Hanoi 100-000, Vietnam
Hoang Anh Duy: Vietnam – Japan Institute for Human Resources Development, Foreign Trade University, 91 Chua Lang Street, Dong Da District, Hanoi 100-000, Vietnam
Dao Thu Thuy: Vietnam – Japan Institute for Human Resources Development, Foreign Trade University, 91 Chua Lang Street, Dong Da District, Hanoi 100-000, Vietnam
Do Truong Giang: Vietnam – Japan Institute for Human Resources Development, Foreign Trade University, 91 Chua Lang Street, Dong Da District, Hanoi 100-000, Vietnam
Vu Nguyen Minh Chau: Vietnam – Japan Institute for Human Resources Development, Foreign Trade University, 91 Chua Lang Street, Dong Da District, Hanoi 100-000, Vietnam
Nguyen Le Minh Ngoc: Vietnam – Japan Institute for Human Resources Development, Foreign Trade University, 91 Chua Lang Street, Dong Da District, Hanoi 100-000, Vietnam
Vu Huong Quynh: Vietnam – Japan Institute for Human Resources Development, Foreign Trade University, 91 Chua Lang Street, Dong Da District, Hanoi 100-000, Vietnam

International Journal of Innovation Management (ijim), 2025, vol. 29, issue 03n04, 1-42

Abstract: In light of technological uncertainty and grounded in the dynamic capabilities view, this study investigates the impact of digital capabilities on the competitive advantage of Vietnamese small and medium-sized enterprises (SMEs) in an emerging market. Surveying 250 SMEs in Vietnam, the research employed partial least squares-structural equation modelling (PLS-SEM) to test hypotheses, followed by artificial neural network (ANN) and PROCESS macro for robustness test. The results show no direct effect of digital capabilities on competitive advantage; however, interestingly, technological uncertainty positively moderates this relationship between digital capabilities and competitive advantage of these firms. The research findings also indicate that digital capabilities are proven to influence adaptive capabilities whereas technological uncertainty fails to moderate this correlation. Moreover, this study points out the positive effects of adaptive capabilities on explorative and exploitative innovation among these emerging market SMEs. Notably, explorative and exploitative innovation have a direct impact on firms’ competitive capabilities while the impact of digital leadership and digital absorptive capacity on digital capabilities is positively significant. The study explored the roles of digital capabilities and technological uncertainty, offering novel contributions to understanding a firm’s competitive advantage. It provides practical implications for managers aiming to enhance firms’ competitive advantage by lessening technological uncertainty for digital capabilities.

Keywords: Digital capabilities; competitive advantage; innovation; technological uncertainty; Vietnamese SMEs (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1142/S1363919625500185

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