Digitalization of Small and Medium-Sized Hotels in Vietnam: Interdependent Critical Factors

Abstract

People responsible for managing digitalization must clarify the role of its critical factors. Many studies have already identified these factors, assuming that they are independent. These factors, however, are likely to interact since digitalization is a multi-stakeholder and multi-dimensional transformation. Ignoring their interactions is likely to cause biases in measurement and analysis. Therefore, this study explores the influential weight and interactions of the critical factors behind the digitalization of Vietnam’s small and medium-sized hotels. According to the technology-organization-environment (TOE) framework, the results of a combined analytical hierarchy process (AHP) and the decision-making trial and evaluation laboratory (DEMATEL) analysis present four key findings: 1) technological context is a cause, but organizational context is an effect, while environmental context is neutral; 2) technological context has influence than others; 3) among the 12 critical factors identified, marketing benefits, financial resources, usage barriers, and cross-technology compatibility are the most important; and 4) marketing benefits, cross-technology compatibility, financial resources, organizational characteristics, and competitor pressure are causes. The findings show that contexts (factors) interact. Cause context (factor) directly and indirectly influences digitalization through other contexts (factors). In addition, there are no dominant contexts and factors. Accordingly, to be effective, digitalization needs to take all critical factors into account. Prioritizing the primary context (factors) and improving the core cause context (factors) are therefore appropriate.