Determining the antecedents of digital transformation and performance: the roles of social capital, open social innovation, absorptive capacity and government support

PurposeOpen social innovation has become a critical practice for firms competing in volatile markets. Simultaneously, the rise of digital technologies has opened opportunities across sectors, making digital transformation a key driver of corporate change. This study examines the impact of internal and external factors, such as social capital, absorptive capacity and government support, in facilitating open social innovation and digital transformation activities, which may ultimately enhance business performance.Design/methodology/approachData were collected through a questionnaire survey distributed to management members across various enterprises in a wide range of industries in Vietnam. A total of 289 valid responses were obtained, and the research hypotheses were tested using partial least squares structural equation modeling.FindingsFirst, open social innovation positively influences digital transformation, with absorptive capacity mediating this relationship. Second, social capital directly affects open social innovation and indirectly impacts digital transformation through open social innovation. Third, digital transformation directly enhances business performance, while absorptive capacity indirectly influences business performance through digital transformation. Finally, government support directly impacts business performance and indirectly influences digital transformation via open social innovation.Originality/valueBy integrating social capital theory and the resource-based view, this research significantly advances the understanding of the complex relationships among government support, social capital, open social innovation, digital transformation, absorptive capacity and business performance.