tóm tắt MỐI QUAN HỆ GIỮA NĂNG LỰC QUẢN TRỊ VÀ KẾT QUẢ KINH DOANH THÔNG QUA VAI TRÒ TRUNG GIAN CỦA CHUYỂN ĐỔI SỐ TRƯỜNG HỢP NGHIÊN CỨU CÁC DOANH NGHIỆP NGÀNH CÔNG NGHIỆP PHỤ TRỢ Ô TÔ VIỆT NAM

tóm tắt MỐI QUAN HỆ GIỮA NĂNG LỰC QUẢN TRỊ VÀ KẾT QUẢ KINH DOANH THÔNG QUA VAI TRÒ TRUNG GIAN CỦA CHUYỂN ĐỔI SỐ TRƯỜNG HỢP NGHIÊN CỨU CÁC DOANH NGHIỆP NGÀNH CÔNG NGHIỆP PHỤ TRỢ Ô TÔ VIỆT NAM tóm tắt MỐI QUAN HỆ GIỮA NĂNG LỰC QUẢN TRỊ VÀ KẾT QUẢ KINH DOANH THÔNG QUA VAI TRÒ TRUNG GIAN CỦA CHUYỂN ĐỔI SỐ TRƯỜNG HỢP NGHIÊN CỨU CÁC DOANH NGHIỆP NGÀNH CÔNG NGHIỆP PHỤ TRỢ Ô TÔ VIỆT NAM tóm tắt MỐI QUAN HỆ GIỮA NĂNG LỰC QUẢN TRỊ VÀ KẾT QUẢ KINH DOANH THÔNG QUA VAI TRÒ TRUNG GIAN CỦA CHUYỂN ĐỔI SỐ TRƯỜNG HỢP NGHIÊN CỨU CÁC DOANH NGHIỆP NGÀNH CÔNG NGHIỆP PHỤ TRỢ Ô TÔ VIỆT NAM tóm tắt MỐI QUAN HỆ GIỮA NĂNG LỰC QUẢN TRỊ VÀ KẾT QUẢ KINH DOANH THÔNG QUA VAI TRÒ TRUNG GIAN CỦA CHUYỂN ĐỔI SỐ TRƯỜNG HỢP NGHIÊN CỨU CÁC DOANH NGHIỆP NGÀNH CÔNG NGHIỆP PHỤ TRỢ Ô TÔ VIỆT NAM MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM HO CHI MINH CITY BANKING UNIVERSITY NGUYEN NGOC HUY THE RELATIONSHIP BETWEEN GOVERNANCE CAPACITY AND BUSINESS PERFORMANCE THROU

MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM

HO CHI MINH CITY BANKING UNIVERSITY

NGUYEN NGOC HUY

THE RELATIONSHIP BETWEEN GOVERNANCE CAPACITY AND BUSINESS PERFORMANCE THROUGH

THE MEDIATING ROLE OF DIGITAL

TRANSFORMATION: A CASE STUDY OF ENTERPRISES

IN THE VIETNAM’S AUTO AUXILIARY INDUSTRY

SUMMARY OF DOCTORAL THESIS IN ECONOMICS

HO CHI MINH CITY - YEAR 2025

MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM

HO CHI MINH CITY BANKING UNIVERSITY

THE RELATIONSHIP BETWEEN GOVERNANCE CAPACITY AND BUSINESS PERFORMANCE THROUGH

THE MEDIATING ROLE OF DIGITAL

TRANSFORMATION: A CASE STUDY OF ENTERPRISES

IN THE VIETNAM’S AUTO AUXILIARY INDUSTRY

SUMMARY OF DOCTORAL THESIS IN ECONOMICS

Major: Business Administration

CHAPTER 1: TOPIC OVERVIEW 1.1 Reason for choosing the topic

In the context of rapid globalization and digitalization, technology plays a central role in restructuring businesses, particularly through emerging technologies such as AI, IoT, Big Data, Blockchain and intelligent automation Digital transformation (DT) is no longer optional but has become an inevitable trend-especially in Vietnam, where SMEs, accounting for over 97% of all businesses, still face significant challenges in technological, financial and governance capacity The auto auxiliary industry is considered a key sector but remains limited in terms of localization and participation in global supply chains due to a weak supporting ecosystem In this context, DT is regarded as a strategic solution to help businesses increase productivity, optimize costs, and improve product quality However, the success of DT heavily depends on governance capacity - including strategic planning, execution of technology initiatives, risk management and fostering a culture of innovation

Many international studies show that most failures in digital projects stem more from governance weaknesses than from technological limitations Therefore, investigating the relationship between governance capacity, digital transformation and business performance is essential to clarify the intermediary role of DT as a conduit for transforming governance capacity into tangible results In Vietnam, surveys reveal that many automotive supporting firms lack digital strategies, have leadership with limited tech experience, and invest minimally in IT departments Each component of governance capacity - such as finance, leadership, human resources, production and marketing - plays a critical role in various stages of the digitalization process Integrating these capabilities within a comprehensive management system enables businesses to adapt more flexibly, enhance business outcomes, and strengthen competitiveness At the same time, this research

provides a valuable foundation for shaping policies to support digital transformation, particularly within programs led by the MPI

Therefore, the research topic: “The relationship between governance capacity and business performance through the mediating role of digital transformation: A case study of enterprises in the Vietnam’s auto auxiliary industry” is both urgent and necessary, contributing theoretical value while

offering practical implications for businesses and national industrial development policies

1.2 Research objectives

1.2.1 General objective

To identify and measure the impact of the key components of governance capacity to business performance, with digital transformation acting as a mediating factor, in the Vietnam’s auto auxiliary industry Based on these findings, the research aims to propose governance implications to enhance business performance within these enterprises

1.2.2 Specific objective

- To identify the principal components of governance capacity of enterprises

in the Vietnam’s auto auxiliary industry

- To identify the relationship between governance capacity, digital transformation and business performance, mediated by digital transformation of enterprises in the Vietnam’s auto auxiliary industry

- To identify, quantify and test the relationship between governance capacity and business performance through the mediating role of digital transformation of enterprises in the Vietnam’s auto auxiliary industry

- To propose actionable governance recommendations aimed at enhancing business performance of enterprises in the Vietnam’s auto auxiliary industry

- What is the nature of the relationship between governance capacity and business performance through the mediating role of digital transformation of enterprises in the Vietnam’s auto auxiliary industry identify, quantify and test?

- What governance strategies can be recommended to improve business performance of enterprises in the Vietnam’s auto auxiliary industry?

1.4 Object and scope of research

Research object: The relationship between governance capacity and business

performance through the mediating role of digital transformation of enterprises in the Vietnam’s auto auxiliary industry

Research scope: This research specifically evaluates the impact of

governance capacity on business performance through the mediating effect of digital transformation of enterprises in the Vietnam’s auto auxiliary industry The research will be conducted enterprises in the Vietnam’s auto auxiliary industry across key provinces and cities (8 out of 63) within the sector, including

Ho Chi Minh City, Dong Nai, Binh Duong, Hanoi, Bac Ninh, Hai Phong, Vinh Phuc, Quang Nam focusing on how governance capacity influence business performance within these enterprises

Timeframe: 2023 - 2025: Survey and thesis completion

1.5 Research methods

This dissertation adopts a mixed-methods approach, integrating both qualitative and quantitative research methods The qualitative phase is designed to identify the variables of the model, propose the research framework and develop and refine the measurement scales Following this, the quantitative phase will be employed to test the hypotheses and validate the research model As this research explores the perspective of enterprises regarding the influence of governance capacity on business performance through the mediating role of digital transformation, drawing on dynamic capabilities theory (Teece, 2018) and absorptive capacity theory (Zahra and George, 2002), innovative frameworks in this context, qualitative research is essential for understanding the underlying concepts, establishing the interrelationships between these concepts and constructing contextually appropriate measurement scales specific to the Vietnam’s auto auxiliary industry Conversely, as the research objectives include measuring the impact of factors within the research model and evaluating the influence of governance capacity on business performance with the mediating role

of digital transformation, the quantitative research will provide the empirical foundation for testing the model

Preliminary quantitative research: This phase will assess the reliability of

the initial measurement scales, after which these scales will be refined into official measures for inclusion in the primary data collection

Official quantitative research: This phase aims to reaffirm the reliability and

validity of the refined measurement scales and to rigorously test the proposed research model

1.6 Contributions of the research

1.6.1 Theoretical contributions

To further elaborate and clarify the theoretical foundations of governance

capacity, such as the Resource-Based View and Dynamic Capabilities Theory, in

the context of developing countries like Vietnam In particular, to examine how

governance capacity influence business performance through digital

transformation in Vietnam’s auto auxiliary industry

1.6.2 Practical contributions

- Support SMEs in Vietnam’s automotive supporting industry

- Strengthen partnerships in the supply chain and technology transfer

- Provide guidance for macro-level policy recommendations

- Propose managerial implications to improve business performance

1.7 Structure of the topic

In addition to the introduction, references and appendices (if any), the

structure of the topic is 5 chapter, as follows:

- Chapter 1: Topic overview

- Chapter 2: Theoretical basis and research model

- Chapter 3: Research methods

- Chapter 4: Research result and discussion

- Chapter 5: Conclusion and governance implications

CHAPTER 2: THEORETICAL BASIS AND RESEARCH MODEL 2.1 Theoretical basis

2.1.1 Capacity and governance capacity

2.1.1.1 Capacity

The concept of capability in the field of governance and organization is often used in a broad sense, encompassing a set of factors, conditions, and resources that enable an individual or organization to effectively perform a specific task According to Gupta et al (2020), organizational capability is understood as the integration of resources, skills and internal processes that help a business achieve its strategic objectives and adapt to a dynamic environment

2.1.1.2 Governance capacity - GC

From a modern perspective, governance capacity is defined as the ability to plan, organize, coordinate and control activities and resources to ensure the effective and sustainable operation of an organization in a complex and ever-changing environment According to Christensen et al (2021), GC is not limited

to internal governance capacity but also includes the ability to interact with external stakeholders such as suppliers, customers, communities and the government

2.1.2 Governance capacity from the Resource-Based View - RBV

The resource-based view holds a central role in enterprises, forming a foundational concept that shapes internal capabilities through the exploitation and optimization of existing resources This helps businesses build core competencies and sustainable strategies (Barney, 2021)

2.1.3 Governance capacity from the Competence-Based View - CBV

The competence-based view focuses on how firms identify and manage the capabilities necessary to sustain and grow their competitive advantage It

emphasizes not only the benefits of available resources but also a firm’s ability to utilize, develop and optimize organizational capabilities - everything a company does well to create value (Teece, 2018)

2.1.4 Governance capacity from the Dynamic Capabilities - DC

According to this theory, governance capacity is not only the ability to perform current tasks but also the firm's capacity to recognize, develop and restructure its competencies in response to environmental changes Hence, dynamic capability is seen as a key factor in maintaining long-term competitiveness (Teece, 2018)

2.1.5 Governance capacity from the Absorptive Capacity Theory - AC

As defined by Zahra and George (2002), absorptive capacity is “a set of organizational routines and processes by which firms acquire, assimilate, transform and exploit external knowledge to produce a dynamic organizational capability.”

2.2 Components of governance capacity in the Vietnam’s auto auxiliary industry

2.2.1 Human resources - HR

Human resources are a core factor determining the survival and sustainable development of businesses, particularly in the auto auxiliary industry, which requires high technical skills, continuous innovation and quick adaptation to global supply chain changes (Nguyen Duc Bao Long et al., 2015)

2.2.2 Production capacity - PC

Production capacity refers to a firm’s ability to effectively use technical resources, technology, equipment and processes to produce goods that meet market requirements in terms of quality, quantity and delivery time In the context

of automotive supporting industries, PC reflects not only technological levels but

also flexibility in production, process improvement capability and integration into global supply chains (Nguyen Ngoc Huy et al., 2024b; Stevenson, 2020)

2.2.3 Management capacity of leader - LC

Leadership management capacity can be defined as a combination of knowledge, skills, qualities and behaviors that allow leaders to operate organizations effectively, make strategic decisions, maintain performance and create a positive work environment (Northouse, 2021)

2.2.4 Financial capacity - FC

Ross et al (2017) suggest that a firm’s financial capacity consists of three main components: (1) capital acquisition, (2) capital utilization and (3) financial risk management

2.2.5 Marketing capacity - MC

According to Mu et al (2018), marketing capacity is defined through two approaches: “outside-in” and “inside-out.” The “outside-in” approach emphasizes understanding and responding to market needs, while the “inside-out” approach focuses on developing internal capabilities to serve customers

2.2.6 Risk management capacity - RC

From a capability perspective, risk management is defined as a firm’s ability

to identify, analyze, respond to and monitor threats that may negatively impact operational goals and strategic development (Ali et al., 2020)

2.3 Digital transformation in the Vietnam’s auto auxiliary industry

2.3.1 Digital transformation - DT

According to Susanti et al (2023), digital transformation is “a firm’s strategic adaptation in applying digital technologies to enhance operational efficiency, environmental responsiveness and customer experience optimization.”

2.3.2 Metrics for measuring digital transformation in the Vietnam’s auto auxiliary industry

Putthiwat et al (2021) proposed foundational criteria to help businesses assess their digitalization progress quantitatively and comprehensively, including: digital awareness, digital infrastructure, digital data capability, digital applications, digital talent and digital culture

2.4 Business performance of enterprises in the Vietnam’s auto auxiliary industry

2.4.1 Business performance - BP

Business performance refers to the continuous achievement of both financial and non-financial goals, the development of skills and competencies and the improvement of customer service and quality processes (Kaplan and Norton, 1992; Tracy et al., 2022)

2.4.2 Metrics for measuring business performance of enterprises in the Vietnam’s auto auxiliary industry

According to Dumitrescu et al (2021), business performance is measured across four key groups: financial indicators, non-financial indicators, customer-related indicators and learning and development indicators

effectiveness and overall businesses performance (Barney, 2021; Teece, 2018;

Hitt et al., 2007; Jonathan and Kock, 2012; Rai et al., 2016; Nguyen Thi Lan Anh,

2016; Nguyen Huu Quang, 2017; Tran Hoai Nam, 2018b; Tran Thi Thu Ha, 2021b) These researchs emphasize that firms with robust governance structures tend to experience stable and sustainable performance However, the majority of these researchs fail to explore the mediating role of digital transformation in this relationship, particularly within the Vietnam’s auto auxiliary industry This represents a significant research gap that this research aims to address

2.5.2 Research on the relationship between digital transformation and business performance

Research into digital transformation gained momentum in the early 21st century, particularly in the context of Industry 4.0 Digital transformation enables companies to achieve substantial improvements in operational efficiency and competitive advantage Organizations that adopt digital technologies such as big data analytics, the Internet of Things (IoT) and automation can optimize production processes, enhance customer service and ultimately generate superior business performance (Johnson, 2018; Lyytinen and Rose, 2019; Sebastian et al., 2020; Nguyen Thi Minh Chau, 2020b; Nguyen Van Cuong, 2021; Tran Thi Thu

Ha, 2021a; Tran Minh Phu, 2021) These researchs have clarified the link between digital transformation and business performance, highlighting the supportive relationship between governance capacity and digital transformation in successfully implementing and maintaining digital strategies, which ultimately enhances productivity and business outcomes However, most of these researchs

do not fully explore the mediating role of digital transformation in the relationship between governance capacity and business performance, particularly in the Vietnam’s auto auxiliary industry This gap in the literature presents a significant opportunity for further research, which this research seeks to address

2.5.3 Research on the relationship between governance capacity, digital transformation and business performance in enterprises

Several recent studies have clarified the relationship between governance capacity, digital transformation and business performance, such as the research by Teece et al (2016), Li and Zhang (2018), Hanelt et al (2020), Smith and Jones (2020), Tran Hoai Nam (2018a), Nguyen Thi Minh Chau (2020a), Phan Thi Minh Huong (2021) Although numerous international and domestic researchs have examined the relationship between governance capacity, digital transformation and business performance, most of these researchs fail to address the mediating role of digital transformation in the relationship between the other two factors Specifically, the Vietnam’s auto auxiliary industry, with its unique production and technological characteristics, has not been fully explored in the context of the interaction between governance capacity, digital transformation and business performance This gap highlights the need for specific research to clarify how governance capacity indirectly influences business performance through the intermediary role of digital transformation in enterprises in the Vietnam’s auto auxiliary industry

2.5.4 Research gaps regarding governance capacity, digital transformation, and business performance of enterprises in the Vietnam’s auto auxiliary industry

Studies have affirmed that governance capacity (GC) plays a crucial role in the business performance (BP) of enterprises; however, the mediating role of digital transformation (DT) has not been clearly addressed Meanwhile, DT is considered a key factor in helping businesses improve productivity and adaptability - particularly in the auto auxiliary industry, a sector characterized by high technological demands and deep supply chain integration In Vietnam, SMEs

in this industry still face numerous barriers related to resources, strategy and management mindset, leading to a fragmented and inconsistent DT process Currently, there is a lack of in-depth research on the relationship between GC, DT,

and BP in this context, highlighting the urgent need for an integrated study to clarify the mediating role of DT and support sustainable business development in the digital era

As a result, the research titled: “The relationship between governance capacity and business performance through the mediating role of digital transformation: A case study of enterprises in the Vietnam’s auto auxiliary industry” aims to address these gaps by elucidating the mechanisms through

which digital transformation impacts business performance via governance capacity, especially within the Vietnam’s auto auxiliary industry

2.6 Hypotheses and research model

2.6.1 Development of research hypotheses

2.6.1.1 The relationship between governance capacity and business performance

Governance capacity (GC) plays a crucial role in enhancing operational efficiency and business performance (BP) GC enables the optimization of resources, adaptation to change, promotion of innovation and technological adoption In the automotive supporting industry - which demands high technical standards and a complex supply chain - GC is even more essential However, many enterprises still lack strong GC, leading to underperformance Therefore, studying the relationship between GC and BP, particularly in Vietnam’s auto auxiliary industry, is necessary to propose solutions for improving competitiveness and sustainable development

Hypothesis H1: Governance capacity have a positive (+) impact on the

business performance of firms in the Vietnam’s auto auxiliary industry

2.6.1.2 The relationship between governance capacity and digital transformation

Governance capacity (GC) plays a key role in digital transformation (DT), from strategic planning to implementation and resource coordination GC helps businesses define a digital vision, select appropriate technologies, lead change and make data-driven decisions In the automotive supporting industry - where resources are often limited - GC becomes especially important for effective DT implementation, operational optimization and competitiveness enhancement Therefore, examining the relationship between GC and the level of DT is crucial, particularly in the current era of deep global integration

Hypothesis H2: Governance capacity have a positive (+) impact on the digital

transformation of firms in the Vietnam’s auto auxiliary industry

2.6.1.3 The relationship between digital transformation and business performance

Digital transformation (DT) is an inevitable trend that helps businesses improve operational efficiency, reduce costs, enhance customer experience and boost business performance (BP) DT involves not just technological adoption, but also a comprehensive restructuring of governance models and corporate culture Enterprises that implement DT systematically will increase productivity, respond flexibly to the market and expand business models However, SMEs - especially

in the auto auxiliary industry - still face many challenges, such as lack of capital, human resources and clear strategies Thus, deeper research on the DT - BP relationship is needed to find appropriate solutions for enhancing competitiveness and sustainable industry development

Hypothesis H3: Digital transformation have a positive (+) impact on the

business performance of firms in the Vietnam’s auto auxiliary industry

2.6.1.4 The relationship between governance capacity, digital transformation and business performance

In a volatile business environment, governance capacity (GC) and digital transformation (DT) are two key factors that help enterprises enhance operational efficiency and business performance (BP) GC sets the strategic direction and roadmap for DT, while DT supports GC through technology, data and automation When effectively combined, GC and DT create sustainable competitive advantages by driving revenue growth, improving service quality and boosting productivity However, enterprises - especially SMEs and those in the auto auxiliary industry - still face numerous challenges due to limited resources and governance capabilities Therefore, strengthening GC is a prerequisite for successful DT and its transformation into measurable business outcomes

Hypothesis H4: Governance capacity positively (+) influence business

performance through the mediating role of digital transformation of firms in the

Vietnam’s auto auxiliary industry

2.6.2 Proposed research model

Building a research model is a vital step in identifying the relationships between variables and testing research hypotheses Based on foundational theories such as RBV (Resource-Based View), CBV (Competence-Based View), DC (Dynamic Capabilities) and AC (Absorptive Capacity), along with empirical research analysis and expert opinions, the proposed model reflects the relationship between governance capacity and business performance, with digital transformation acting as a mediating factor This model is tailored to the specific characteristics of Vietnam’s auto auxiliary industry, as illustrated in figure 2.1

Figure 2.1: Proposed research model

Source: Author’s suggestion

CHAPTER 3: RESEARCH METHODS 3.1 Research process

The research process is structured into four key stages, as summarized in figure 3.1

Figure 3.1: Research process

Source: Author’s suggestion