Abstract

Digital transformation (DT) has become a critical factor in the growth and competitiveness of small and medium-sized enterprises (SMEs), yet its adoption remains uneven across different regions. This study examines the prevalence and predictors of DT among SMEs in the Central Highlands of Vietnam. A cross-sectional survey was conducted among 380 randomly selected SMEs across five provinces, utilizing structured questionnaires to assess technological, organizational, and environmental influences. The results from analyses identified key predictors of digital transformation. While eight factors were initially associated with digital adoption, the multivariable analysis revealed that technology (OR = 2.476, p = 0.003), organization (OR = 3.514, p < 0.001), and environment (OR = 4.461, p < 0.001) were significant predictors. Additionally, SMEs with only one sales channel (OR = 1.947, p = 0.019) and those employing a single marketing strategy (OR = 2.197, p = 0.006) were significantly associated with DT. These findings underscore the importance of fostering a supportive digital ecosystem for SMEs through targeted policies, financial incentives, and infrastructure development. Policymakers and leaders should focus on reducing barriers, enhancing technological capabilities, and improving organizational readiness to drive DT.