THE IMPACT OF DIGITAL TRANSFORMATION AND ESG ON THE BUSINESS PERFORMANCE OF SMALL AND MEDIUM-SIZED LOGISTICS ENTERPRISES

Abstract

This study uses a mixed methodology to assess the impact of digital transformation and ESG on the business performance of small and medium-sized logistics enterprises. The research model was constructed and validated using a linear structural equation model. Data was collected from 268 small and medium-sized logistics enterprises in Ho Chi Minh City, Vietnam. The findings of the research indicate that the phenomena of digital transformation and ESG criteria are emerging as pervasive global trends, significantly influencing logistics enterprises, while simultaneously posing challenges associated with financial resources, technological advancements, and the operationalization of environmental policies. Empirical analysis indicates that the two digital transformation factors of technological innovation and the trend of innovation, and the three ESG factors of environmental commitment, social responsibility, and governance capacity, all five factors have a significant impact on the business performance of small and medium-sized logistics enterprises. Based on these findings, the study proposes managerial implications and practical solutions to improve business performance for small and medium-sized logistics enterprises (SMEs). The research provides valuable results for SMEs and managers in developing strategies and policies to promote digital transformation and ESG towards sustainable business.