MODERATING ROLE OF DIGITAL TRANSFORMATION IN THE BRAND IMAGE AND COMPETITIVE CAPACITY RELATIONSHIP: A CASE STUDY OF THE COMMERCIAL BANKS IN VIETNAM
DOI:
https://doi.org/10.18623/rvd.v22.n7.4044Keywords:
Image, Competitive Capacity, Commercial Banks, Intellectual Capital, Digital EraAbstract
In an increasingly competitive and digitally driven banking environment, understanding the key determinants of competitive capacity has become a strategic priority for commercial banks, particularly in emerging economies. This study aims to identify and examine the factors affecting competitive capacity in Vietnamese commercial banks by integrating intellectual capital, organizational culture, and digital transformation into a unified analytical framework. A mixed-methods approach was employed. First, qualitative discussions with 45 bank managers in Ho Chi Minh City were conducted to develop and refine the measurement scales. Subsequently, a quantitative survey was administered to banking service users in Ho Chi Minh City and Dong Nai province, yielding 654 valid responses from 700 distributed questionnaires. The data were analyzed using Partial Least Squares Structural Equation Modeling with SmartPLS 4.0. The empirical results indicate that brand image, human capital, structural capital, relationship capital, organizational culture, and digital transformation all positively and statistically significantly affect competitive capacity. Among these factors, relationship capital emerges as the most influential determinant. In addition, digital transformation not only directly enhances competitive capacity but also significantly moderates the relationship between brand image and competitive capacity, strengthening the impact of brand value in digitally advanced banks. This study contributes to the literature by providing empirical evidence from an emerging-market banking context and by highlighting the strategic role of digital transformation in leveraging intangible resources. The findings offer practical implications for bank managers and policymakers seeking to enhance sustainable competitiveness in the digital era.
References
Aboramadan, M., Albashiti, B., Alharazin, H., & Zaidoune, S. (2020). Organizational culture, innovation, and performance: A study from a non-western context. Journal of Management Development, 39(4), 437–451. https://doi.org/10.1108/JMD-06-2019-0253
Adhikari, K., & Panda, R. K. (2019). The role of consumer-brand engagement towards driving brand loyalty: Mediating effect of relationship quality. Journal of Modelling in Management, 14(4), 987–1005. https://doi.org/10.1108/JM2-03-2019-0067
Adu-Ameyaw, E., Hickson, L., & Danso, A. (2022). Managerial compensation and fixed intangible assets investment: The role of managerial ownership and firm characteristics. Journal of Applied Accounting Research, 23(5), 1071–1094. https://doi.org/10.1108/JAAR-04-2021-0099
Agyapong, A., Appiah, F. A., Osei, H. V., & Aidoo, S. (2025). When and how does creativity influence performance? An examination of SMEs in an emerging economy. Africa Journal of Management, 11(2), 176–202. https://doi.org/10.1080/23322373.2025.2500919
Akins, B., Li, L., Ng, J., & Rusticus, T. O. (2016). Bank competition and financial stability: evidence from the financial crisis. Journal of Financial and Quantitative Analysis, 51(1), 1–28. https://doi.org/10.1017/S0022109016000090
Amoa-Gyarteng, K., & Dhliwayo, S. (2024). Cultivating success: organizational culture’s influence on innovation and performance in SMEs. Cogent Business & Management, 11(1), 1–23. https://doi.org/10.1080/23311975.2024.2397070
Amoroso, S., Pattuglia, S., & Khan, I. (2021). Do millennials share similar perceptions of brand experience? A clusterization based on brand experience and other brand-related constructs: the case of Netflix. Journal of Marketing Analytics, 9(1), 33–43. https://doi.org/10.1057/s41270-021-00103-0
Arsawan, I. W. E., Koval, V., Rajiani, I., Rustiarini, N. W., Supartha, W. G., & Suryantini, N. P. S. (2020). Leveraging knowledge sharing and innovation culture into SMEs sustainable competitive advantage. International Journal of Productivity and Performance Management, 71(2), 405–428. https://doi.org/10.1108/IJPPM-04-2020-0192
Bianchi, C. E., Tontini, G., & Gomes, G. (2021). Relationship between subjective well-being, perceived organisational culture and individual propension to innovation. European Journal of Innovation Management, 25(5), 1447–1468. https://doi.org/10.1108/EJIM-01-2021-0045
Asiaei, K., Rezaee, Z., Bontis, N., Barani, O., & Sapiei, N. S. (2021). Knowledge assets, capabilities and performance measurement systems: a resource orchestration theory approach. Journal of Knowledge Management, 25(8), 1947–1976. https://doi.org/10.1108/JKM-09-2020-0721/FULL/PDF
Azmi, W., Anwer, Z., Ali, M., & Mohamad, S. (2024). Competition, stability, and institutional environment: The case of dual banking economies. International Journal of Finance & Economics, 29(1), 609–631. https://doi.org/10.1002/ijfe.2700
Bilgin, Y., & Kethüda, Ö. (2022). Charity social media marketing and its influence on charity brand image, brand trust, and donation intention. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 33(5), 1091–1102. https://doi.org/10.1007/s11266-021-00426-7
Boohene, R., Gyimah, R. A., & Osei, M. B. (2020). Social capital and SME performance: The moderating role of emotional intelligence. Journal of Entrepreneurship in Emerging Economies, 12(1), 79–99. https://doi.org/10.1108/JEEE-10-2018-0103
Bornay-Barrachina, M., & Herrero, I. (2018). Team creative environment as a mediator between CWX and R&D team performance and moderating boundary conditions. Journal of Business and Psychology, 2017/04/05, 33(2), 311–323. https://doi.org/10.1007/s10869-017-9495-8
Buccieri, D., Javalgi, R., & Jancenelle, V. (2020). Dynamic capabilities and performance of emerging market international new ventures: Does international entrepreneurial culture matter? International Small Business Journal, 39(5), 474–499. https://doi.org/10.1177/0266242620969682
Bustinza, O. F., Gomes, E., Vendrell-Herrero, F., & Baines, T. (2019). Product–service innovation and performance: The role of collaborative partnerships and R&D intensity. R&D Management, 49(1), 33–45. https://doi.org/10.1111/radm.12269
Byukusenge, E., & Munene, J. C. (2017). Knowledge management and business performance: Does innovation matter? Cogent Business & Management, 4(1), 1–18. https://doi.org/10.1080/23311975.2017.1368434
Cowling, M., Liu, W., & Zhang, N. (2018). Did firm age, experience, and access to finance count? SME performance after the global financial crisis. Journal of Evolutionary Economics, 28(1), 77–100. https://doi.org/10.1007/s00191-017-0502-z
Datta, S., Jha, A., & Kulchania, M. (2020). On accounting’s twenty-first century challenge: Evidence on the relation between intangible assets and audit fees. Review of Quantitative Finance and Accounting, 55(1), 123–162. https://doi.org/10.1007/s11156-019-00839-y
Gashe, K., Sime, Z., & Mada, M. (2024). Intellectual capital and total factor productivity. Cogent Economics & Finance, 12(1), 1–19. https://doi.org/10.1080/23322039.2024.2328484
Gianiodis, P., Lee, S. H., Zhao, H., Foo, M. D., & Audretsch, D. (2022). Lessons on small business resilience. Journal of Small Business Management, 60(5), 1029–1040. https://doi.org/10.1080/00472778.2022.2084099
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
Holland, D., & Scullion, H. (2021). Towards a talent retention model: Mapping the building blocks of the psychological contract to the three stages of the acquisition process. The International Journal of Human Resource Management, 32(13), 2683–2728. https://doi.org/10.1080/09585192.2019.1569546
Hussain, M., & Bashir, U. (2020). Risk-competition nexus: Evidence from Chinese banking industry. Asia Pacific Management Review, 25(1), 23–37. https://doi.org/10.1016/j.apmrv.2019.06.001
Intara, P., & Suwansin, N. (2024). Intangible assets, firm value, and performance: does intangible-intensive matter? Cogent Economics & Finance, 12(1), 1–20. https://doi.org/10.1080/23322039.2024.2375341
Jie, S., Harms, R., Groen, A. J., & Jones, P. (2023). Capabilities and performance of early internationalizing firms: A systematic literature review. Journal of Small Business Management, 61(3), 1143–1173. https://doi.org/10.1080/00472778.2021.1955124
Juergensen, J., Guimón, J., & Narula, R. (2020). European SMEs amidst the COVID-19 crisis: assessing impact and policy responses. Journal of Industrial and Business Economics, 47(3), 499–510. https://doi.org/10.1007/s40812-020-00169-4
Kengatharan, N. (2019). A knowledge-based theory of the firm Nexus of intellectual capital, productivity and firms’ performance. International Journal of Manpower, 40(6), 1056–1074. https://doi.org/10.1108/ijm-03-2018-0096
Kiranantawat, B., & Ahmad, S. Z. (2023). Conceptualising the relationship between green dynamic capability and SME sustainability performance: The role of green innovation, organisational creativity and agility. International Journal of Organizational Analysis, 31(7), 3157–3178. https://doi.org/10.1108/IJOA-04-2022-3246
Li, S. (2019). Banking sector reform, competition, and bank stability: An empirical analysis of transition countries. Emerging Markets Finance and Trade, 55(13), 3069–3093. https://doi.org/10.1080/1540496X.2018.1540349
Maji, S. G., & Hazarika, P. (2018). Capital regulation, competition and risk-taking behavior of Indian banks in a simultaneous approach. Managerial Finance, 44(4), 459–477. https://doi.org/10.1108/MF-09-2017-0340
Nadeem, M., Gan, C., & Nguyen, C. (2018). The Importance of Intellectual Capital for Firm Performance: Evidence from Australia. Australian Accounting Review, 28(3), 334–344. https://doi.org/10.1111/auar.12184
Nakku, V. B., Agbola, F. W., Miles, M. P., & Mahmood, A. (2020). The interrelationship between SME government support programs, entrepreneurial orientation, and performance: A developing economy perspective. Journal of Small Business Management, 58(1), 2–31. https://doi.org/10.1080/00472778.2019.1659671
Nasution, M. D. T. P., Rini, E. S., Absah, Y., & Sembiring, B. K. F. (2022). Social network ties, proactive entrepreneurial behavior and successful retail business: A study on Indonesia small enterprises. Journal of Research in Marketing and Entrepreneurship, 24(1), 141–160. https://doi.org/10.1108/jrme-07-2020-0095
Presutti, M., & Odorici, V. (2019). Linking entrepreneurial and market orientation to the SME’s performance growth: The moderating role of entrepreneurial experience and networks. International Entrepreneurship and Management Journal, 15(3), 697–720. https://doi.org/10.1007/s11365-018-0533-4
Rakshit, B., & Bardhan, S. (2019). Bank Competition and its Determinants: Evidence from Indian Banking. International Journal of the Economics of Business, 26(2), 283–313. https://doi.org/10.1080/13571516.2019.1592995
Saraswati, R. S., Yadiati, W., Suharman, H., & Soemantri, R. (2024). Corporate governance, intellectual capital, and organizational culture: their influence on lean manufacturing and firm value. Cogent Business & Management, 11(1), 1–34. https://doi.org/10.1080/23311975.2024.2382335
Sarfraz, M., Shah, S. G. M., Ivascu, L., & Qureshi, M. A. A. (2020). Explicating the impact of hierarchical CEO succession on small-medium enterprises’ performance and cash holdings. International Journal of Finance & Economics, 27(2), 2600–2614. https://doi.org/10.1002/ijfe.2289
Schulze, A., & Dada, O. L. (2024). Building strategic human capital resources: The effects of strategic entrepreneurship on employee recruitment and retention. Journal of Small Business Management, 63(1), 388–421. https://doi.org/10.1080/00472778.2024.2322985
Sedziniauskiene, R., & Sekliuckiene, J. (2020). Entrepreneurial orientation and new venture performance: The moderating role of network types. European Journal of International Management, 14(5), 842–865. https://doi.org/10.1504/EJIM.2020.109821
Sisodia, G., Jadiyappa, N., & Joseph, A. (2021). The relationship between human capital and firm value: Evidence from Indian firms. Cogent Economics & Finance, 9(1), 1–15. https://doi.org/10.1080/23322039.2021.1954317
Srivastava, B., Singh, S., & Jain, S. (2023). Bank competition, risk-taking and financial stability: Insights from an emerging economy. Competitiveness Review: An International Business Journal, 33(5), 959–992. https://doi.org/10.1108/CR-10-2021-0143
Taouab, O., & Issor, Z. (2019). Firm performance: Definition and measurement models. European Scientific Journal, 15(1), 93–106. http://dx.doi.org/10.19044/esj.2019.v15n1p93
Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49. https://doi.org/10.1016/j.lrp.2017.06.007
Varma, D., & Dutta, P. (2023). Restarting MSMEs and start-ups post COVID-19: a grounded theory approach to identify success factors to tackle changed business landscape. Benchmarking, 30(6), 1912–1941. https://doi.org/10.1108/BIJ-09-2021-0535
Vithana, K., Soobaroyen, T., & Ntim, C. G. (2021). Human resource disclosures in UK corporate annual reports: To what extent do these reflect organisational priorities towards labour? Journal of Business Ethics, 169(3), 475–497. https://doi.org/10.1007/s10551-019-04289-3
Wang, M. C., Chen, P. C., & Fang, S. C. (2021). How environmental turbulence influences firms’ entrepreneurial orientation: The moderating role of network relationships and organizational inertia. Journal of Business and Industrial Marketing, 36(1), 48–59. https://doi.org/10.1108/JBIM-05-2019-0170
Wong, A. P. H., & Kee, D. M. H. (2022). Driving factors of industry 4.0 readiness among manufacturing SMEs in Malaysia. Information, 13(12), 552. https://doi.org/10.3390/info13120552
You, N. N., Lou, Y., Zhang, W., Chen, D., & Zeng, L. (2023). Leveraging resources and dynamic capabilities for organizational resilience amid COVID-19. South African Journal of Business Management, 54(1), 1–12. https://doi.org/10.4102/sajbm.v54i1.3802
Zhu, F., & Newman, A. (2023). One size does not fit all: Organizational rewards, managerial experience, and employee retention in entrepreneurial new ventures. Entrepreneurship Theory and Practice, 47(5), 1788–1815. https://doi.org/10.1177/10422587221111729
Downloads
Published
How to Cite
Issue
Section
License
I (we) submit this article which is original and unpublished, of my (our) own authorship, to the evaluation of the Veredas do Direito Journal, and agree that the related copyrights will become exclusive property of the Journal, being prohibited any partial or total copy in any other part or other printed or online communication vehicle dissociated from the Veredas do Direito Journal, without the necessary and prior authorization that should be requested in writing to Editor in Chief. I (we) also declare that there is no conflict of interest between the articles theme, the author (s) and enterprises, institutions or individuals.
I (we) recognize that the Veredas do Direito Journal is licensed under a CREATIVE COMMONS LICENSE.
Licença Creative Commons Attribution 3.0
