Digital transformation and export performance: a process mechanism of firm digital capabilities

Purpose This study aims to investigate the logic between digital transformation and export performance by analysing a large sample of Vietnamese exporters. The theoretical model is further extended by investigating the driving role of digital transformational leadership and mediating effects of firm digital capabilities and employee exploration and exploitation innovation. Design/methodology/approach The study sample comprised 364 middle managers at 107 export firms in Ho Chi Minh City, Vietnam. The data are analysed using a partial least square-structural equation model (PLS-SEM). Findings Digital transformation may be an indispensable tool for enhancing the export performance of businesses. Moreover, digital transformational leadership may drive digital transformation through the mediating mechanisms of firm digital capabilities and employee exploration and exploitation innovations to achieve high export performance. Originality/value This initial study contributes significantly to international business theory through the lens of dynamic capabilities theory, which reveals the role of digital transformation in export performance via mechanisms of digital transformational leadership, firm digital capabilities and employee exploration and exploitation innovation.