Digital transformation strategy and business models: Exploring the relationships in emerging economies

Digital transformation (DT) fundamentally reshapes business models (BMs) across emerging economies, yet limited empirical evidence exists regarding the underlying mechanisms driving this transformation (Rane et al., 2024; Li et al., 2024). This study investigates the impact of technological, organizational, and environmental factors on DT levels and subsequent BM innovation. By integrating the technology-organization-environment (TOE) framework with BM innovation theory, we developed a conceptual model that was tested through structural equation modeling (SEM). Data were collected from 319 firms across multiple industries in Vietnam using validated scales. Bootstrap analysis confirmed the model’s reliability and the validity of hypothesis testing. The results reveal that technological readiness, organizational capabilities, and environmental pressures significantly predict DT levels, which in turn influence BM innovation. Technology infrastructure investment emerges as the strongest predictor of transformation success. These findings extend the application of the TOE framework to emerging market contexts and provide actionable insights for firms pursuing digital BM innovation. The research limitations include a single-country focus and a cross-sectional design. Future research should examine longitudinal transformation patterns across diverse emerging economies to validate these relationships.