Studying the Relationship Between Management Capacity and Business Performance Through the Mediating Role of Digital Transformation in Vietnam’s Automotive Supporting Industry

Abstract

This study examines the relationship between management capacity and business performance, highlighting the mediating role of digital transformation and the moderating effect of innovation in Vietnam’s automotive supporting industry. Using a quantitative research approach, we analyze survey data from 475 enterprises across key provinces and cities, focusing on business managers and industry researchers. The findings indicate that six key dimensions of management capacity—human resources, production, management, finance, industry competitiveness, and supply chain capacity—positively influence business performance. Additionally, digital transformation significantly mediates this relationship, while innovation moderates the impact of management capacity on digital transformation. Based on these insights, the study offers strategic recommendations for enhancing management capacity, accelerating digital transformation, and fostering innovation to improve business performance in Vietnam’s automotive supporting industry.