Environmental corporate social responsibility, digital technology adoption, and the performance of small and medium-sized enterprises in Vietnam: The mediating roles of green process innovation and supplier commitment

Abstract

This study examines the impact of Environmental Corporate Social Responsibility (E-CSR) and Digital Technology Adoption (DTA) on the corporate performance (CP) of small and medium-sized enterprises (SMEs) in Dak Lak Province, Vietnam. While prior studies have typically examined E-CSR or DTA in isolation, empirical evidence integrating these two strategic orientations within a unified framework for SMEs in emerging economies remains limited. It specifically examines the mediating roles of Green Process Innovation (GPI) and Supplier Commitment (SC), as well as the moderating role of Market Dynamism (MD). Using a quantitative approach, the research employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze survey data collected from 120 SME managers across various sectors, including manufacturing, trade, and services. Validated measurement scales were employed, and the data analysis involved testing for reliability, model fit, and hypotheses using bootstrapping and multi-group analysis. The findings reveal that both E-CSR and DTA have a positive impact on corporate performance, both directly and indirectly, through GPI and SC. These two mediators highlight the importance of enhancing internal innovation processes and cultivating robust supplier relationships. Additionally, market dynamism significantly moderates the links between GPI/SC and CP, emphasizing the value of adaptability in volatile environments. Further analysis indicates that these effects vary across sectors, underscoring the contextual nature of sustainability and digitalization strategies. Practically, the results guide managers and policymakers on how to integrate sustainability and digital strategies into the core of business operations. Promoting green innovation, investing in digital tools, and strengthening supplier engagement are critical, particularly when aligned with specific industry contexts. From a theoretical perspective, this study extends Stakeholder Theory and Dynamic Capabilities Theory by explaining how environmental responsibility and digital technology adoption jointly translate into SME performance through green process innovation and SC under varying levels of market dynamism. This study contributes to the literature by integrating E-CSR and digital transformation within a unified framework, uncovering both the mechanisms and sector-specific variations that drive sustainable performance in emerging economies.