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Abstract
Digital transformation is a breakthrough stage and an essential task for all organizations and enterprises. The TOE framework is applied to identify the technological, organizational, and environmental factors influencing digital transformation. Based on a survey of 348 SMEs in Quang Tri Province and Hue City, the study reveals that all 10 factor groups within the TOE framework significantly affect digital transformation in SMEs. By validating the proposed model using Structural Equation Modeling (SEM), the results show that the TOE components—including the technological context (existing IT infrastructure, transformational advantages, digital human resources); the organizational context (strategy, readiness, leadership support); and the environmental context (competitive pressure, government support, customer behavior)—all exert positive impacts on the digital transformation of SMEs in these two localities. Notably, transformation cost demonstrates a negative effect on the digital transformation process of SMEs. Based on the analytical results, the study proposes conclusions and several managerial implications to promote digital transformation among SMEs in these two regions in the near future
Keywords: Digital transformation; SMEs; TOE model.