Human capital, digital transformation, and firm performance of startups in Vietnam
More details
Hide details
Ph.D., University of Economics Ho Chi Minh City
Assoc. Prof., University of Economics Ho Chi Minh City
Online publication date: 2022-04-18
Management 2022;26(1):1-18
Based on social capital theory, the study explained the digital transformation process of startups in Vietnam. The primary object of this study is to examine the relationship between human capital, digital transformation, and firm performance of startups in Vietnam. The study applied Partial Least Squares Structural Model (PLS-SEM) with a sample size of 230 managers. The results demonstrated the positive relationships between human capital, digital transformation, and firm performance. The study explored digital transformation as a mediation mechanism between human capital and firm performance. The results provided some managerial implications for managers to focus on improving human capital in order to promote digital transformation and firm performance. This is an important strategy to help startups escape the crisis of Covid-19 pandemic. Finally, the study presented some limitations and directions for further research.
Alnoor, A. (2020). Human capital dimensions and firm performance, mediating role of knowledge management. 20(2), 149-168.
Aral, S., & Weill, P. (2007). IT Assets, Organizational Capabilities, and Firm Performance: How Resource Allocations and Organizational Differences Explain Performance Variation. Organization Science, 18, 763-780. doi:
Barney, J. B. (1986). Types of Competition and the Theory of Strategy: Toward an Integrative Framework. 11(4), 791-800. doi:10.5465/amr.1986.4283938.
Becker, G. (1964). Human capital. A theoretical and empirical analysis with special reference to education. New York: Columbia university press for The NBER.
Bouwman, H., Nikou, S., & de Reuver, M. (2019). Digitalization, business models, and SMEs: How do business model innovation practices improve performance of digitalizing SMEs? Telecommunications Policy, 43(9), 101-828. doi:
Bradley, S. W., McMullen, J. S., Artz, K., & Simiyu, E. M. (2012). Capital is not enough: Innovation in developing economies. Journal of Management Studies, 49(4), 684-717.
Brynjolfsson, E., & Hitt, L. M. (2000). Beyond Computation: Information Technology, Organizational Transformation and Business Performance. Journal of Economic Perspectives, 14(4), 23-48. doi:10.1257/jep.14.4.23.
Chandler, G. N., & Hanks, S. H. (1994). Market attractiveness, resource-based capabilities, venture strategies, and venture performance. Journal of Business Venturing, 9(4), 331-349. doi:
Chin, W. W. (2010). How to Write Up and Report PLS Analyses. In V. Esposito Vinzi, W. W. Chin, J. Henseler, & H. Wang (Eds.), Handbook of Partial Least Squares: Concepts, Methods and Applications (pp. 655-690). Berlin, Heidelberg: Springer Berlin Heidelberg.
Coff, R. W. (2002). Human Capital, Shared Expertise, and the Likelihood of Impasse in Corporate Acquisitions. Journal of Management, 28(1), 107-128. doi:
Cohen, J. (2013). Statistical power analysis for the behavioral sciences: Academic Press.
Cuc Quan ly kinh doanh. (2021). Tình hình đăng kí doanh nghiệp tháng 7 và 7 tháng đầu năm 2021. Retrieved from
Dimov, D. (2010). Nascent entrepreneurs and venture emergence: Opportunity confidence, human capital, and early planning. Journal of Management Studies, 47(6), 1123-1153.
Fenech, R., Baguant, P., & Ivanov, D. (2019). The Changing Role Of Human Resource Management In An Era Of Digital Transformation. International Journal of Entrepreneurship, 22(2), 166-175.
Fornell, C., & Larcker, D. F. (1981). Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics. Journal of Marketing Research, 18(3), 382-388. doi:
Foss, L. (1994). The Impact of Human Capital, a Social Network and Business Resources on Start-up.
Grant, R. M. (1996). Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration. Organization Science, 7(4), 375-387.
Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM): Sage publications.
Hair Jr, J. F., Black, W. C., Babin, B. J., & Anderson, R. (2019). Multivariate Data Analysis London: Cengage Learning.
Harris, D., & Helfat, C. (1997). Specificity of CEO Human Capital and Compensation. Strategic Management Journal, 18(11), 895-920.
Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. In R. R. Sinkovics & P. N. Ghauri (Eds.), New Challenges to International Marketing (Vol. 20, pp. 277-319): Emerald Group Publishing Limited.
Jin, C.-H. (2017). The effect of psychological capital on start-up intention among young start-up entrepreneurs. Chinese Management Studies, 11(4), 707-729. doi:10.1108/CMS-06-2017-0162.
Ju, W., Zhou, X., & Wang, S. (2019). The impact of scholars’ guanxi networks on entrepreneurial performance—The mediating effect of resource acquisition. Physica A: Statistical Mechanics and its Applications, 521, 9-17. doi:
Kogut, B., & Zander, U. (1992). Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology. Organization Science, 3(3), 383-397.
Li, L., Su, F., Zhang, W., & Mao, J.-Y. (2018). Digital transformation by SME entrepreneurs: A capability perspective. 28(6), 1129-1157. doi:
Libert, B., Beck, M., & Wind, Y. (2016). Questions to ask before your next digital transformation (Vol. 60).
Marvel, M. R. (2013). Human Capital and Search–Based Discovery: A Study of High–Tech Entrepreneurship. Entrepreneurship theory and practice, 37(2), 403-419. doi:
Mithas, S., Krishnan, M. S., & Fornell, C. (2005). Why Do Customer Relationship Management Applications Affect Customer Satisfaction? Journal of Marketing, 69(4), 201-209. doi:10.1509/jmkg.2005.69.4.201.
Nambisan, S., Wright, M., & Feldman, M. (2019). The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8), 103773. doi:
Nwankpa, J. K., & Roumani, Y. (2016). IT capability and digital transformation: A firm performance perspective. Paper presented at the Thirty Seventh International Conference on Information Systems, Dublin.
Pagani, M. (2013). Digital Business Strategy and Value Creation: Framing the Dynamic Cycle of Control Points. MIS Quarterly, 37(2), 617-632. doi:
Peng, M. W., & Luo, Y. (2000). Managerial ties and firm performance in a transition economy: The nature of a micro-macro link. Academy of management journal, 43(3), 486-501.
Peteraf, M. A. (1993). The cornerstones of competitive advantage: A resource-based view. 14(3), 179-191. doi:
Polyanin, A., Golovina, T., Avdeeva, I., & Vertakova, Y. (2019). Specificity of human capital in the conditions of digital transformation of business organizations. MATEC Web of Conferences, 265, 07012. doi:10.1051/matecconf/201926507012.
Reijonen, H., & Komppula, R. (2007). Perception of success and its effect on small firm performance. Journal of Small Business and Enterprise Development, 14(4), 689-701. doi:10.1108/14626000710832776.
Serageldin, I., & Dasgupta, P. (2001). Social capital: a multifaceted perspective: The World Bank.
Setia, P., Setia, P., Venkatesh, V., & Joglekar, S. (2013). Leveraging Digital Technologies: How Information Quality Leads to Localized Capabilities and Customer Service Performance. MIS Quarterly, 37(2), 565-590.
Tran Nha Ghi, Nguyen Thi Phuong Anh, Nguyen Quang Thu, & Ngo Quang Huan. (2021). Entrepreneur’s Human Capital and Business Model Innovation: The Meditation Role of Access to Start-Up Resources. International Journal of Information and Management Sciences, 32(1), 59-76. doi:
Unger, J. M., Rauch, A., Frese, M., & Rosenbusch, N. (2011). Human capital and entrepreneurial success: A meta-analytical review. Journal of Business Venturing, 26(3), 341-358.
Volodymyr, R., Ganna, R., Larysa, F., Ihor, R., & Svitlana, G. (2021). The effectiveness of human capital in the context of the digital transformation of the economy: The case of Ukraine. Journal of Eastern European and Central Asian Research (JEECAR), 8(2). doi:
Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading digital: Turning technology into business transformation: Harvard Business Press.
ISSN:1429-9321 (1997-2019)
Journals System - logo
Scroll to top