The Path to Corporate Digital Culture in SMEs: Managerial Encouragement, Cross-Departmental Partnerships, and Eagerness for IT Advancements

Abstract

Purpose: This study aims to find solutions for enhancing the development of corporate digital culture within Small and Medium Enterprises (SMEs) in Vietnam. Specifically, it examines managerial encouragement, cross-departmental collaboration, and eagerness for IT advancements as key catalysts in fostering digital culture. Design/methodology/approach: The study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed hypotheses. Data were collected from 25 SMEs operating in various business sectors in Vietnam, focusing on the relationships between managerial encouragement, cross-departmental collaboration, eagerness for IT advancements, and the development of corporate digital culture. Findings: The results confirm that managerial encouragement, cross-departmental collaboration, and eagerness for IT advancements positively impact the development of digital culture in SMEs. Moreover, eagerness for IT advancements mediates the relationships between managerial encouragement, cross-departmental collaboration, and corporate digital culture, further strengthening the connection between these variables. Research limitations/implications: Although the study provides significant insights, it is limited by its focus on a small sample of 25 SMEs in Vietnam, which may restrict the generalizability of the findings. Future research could include a larger sample size and explore additional industries and geographical areas. Originality/value: This research enriches the understanding of digital culture development in SMEs by emphasizing the mediating role of eagerness for IT advancements. It also offers practical insights into the importance of managerial encouragement and cross-departmental collaboration in successfully adopting and implementing IT solutions, thereby advancing corporate digital culture.