Title: THE IMPACT OF DIGITAL TRANSFORMATION IN FINANCIAL MANAGEMENT ON CORPORATE FINANCIAL RESILIENCE TO EXOGENOUS SHOCKS: THE ROLE OF DYNAMIC FINANCIAL CAPABILITIES
Author:
Huy Oanh Nguyen
Abstract:
This study aims to elucidate the mechanism through which digital transformation in financial management (DT-FM) impacts the financial resilience (FR) of enterprises against exogenous shocks, while also examining the moderating role of dynamic financial capabilities (DFC). Using a qualitative multiple-case study method, data was collected through 20 in-depth interviews with key managers and analysis of secondary documents at eight Vietnamese enterprises across various sectors. The core finding confirms that the impact of DT-FM on FR is not a direct relationship but is decisively moderated by DFC. In firms with low DFC, technology offers limited value, whereas in firms with high DFC, technology becomes a catalyst that amplifies Sensing, Seizing, and Transforming capabilities, thereby significantly enhancing FR. Therefore, the study provides a critical managerial implication: to build sustainable resilience, enterprises must shift their mindset from “buying technology” to “building capabilities,” meaning that investment in technology must be coupled with the cultivation of people, processes, and organizational culture.
Keywords: Digital Transformation, Financial Management, Resilience, Economic Shocks, Role of Financial Capabilities, Vietnam.
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