Abstract

This study investigates the impact of digital transformation (DX) on the financial performance of construction firms in Ca Mau province, Vietnam, using a functional-area approach. Survey data from 152 enterprises were analyzed, with return on assets (ROA) employed as a proxy for financial performance. The model incorporates managerial characteristics, overall DX maturity, and the degree of digitalization across four functional domains: human resource management, finance and accounting, materials and equipment management, and project management. An ordinary least squares (OLS) model with heteroskedasticity-robust standard errors was applied. The results reveal heterogeneous effects of digital transformation across functional areas. Digitalization in materials and equipment management exerts a positive and statistically significant impact on ROA, whereas digitalization in finance and accounting, as well as project management, exhibits negative short-term effects. Overall DX maturity is not found to be statistically significant. In contrast, managerial characteristics, including age, education, and experience, have a positive influence on firm performance. These findings provide empirical evidence on the differentiated impacts of digital transformation within construction firms in a developing economy context.

Keywords: Ca Mau, construction enterprises, digital transformation, financial performance, functional digitalization, ROA.

1. Introduction

Digital transformation has become a strategic imperative in increasingly data-driven and technology-intensive markets. Beyond mere adoption of information technologies, it involves fundamental changes in business models, operational processes, and decision-making systems (Verhoef et al., 2021).

The construction industry provides a particularly relevant context for examining the performance implications of digital transformation. Characterized by high asset intensity, complex project coordination, and volatile material costs, construction firms face significant operational challenges. Digital technologies can enhance transparency, coordination, and resource management; however, their adoption remains uneven and often requires substantial organizational adjustment (Samuelson & Stehn, 2023).

In Vietnam, especially among small and medium-sized construction enterprises, constraints in capital, digital capabilities, and management systems limit the effectiveness of digital transformation. Consequently, its impact on firm performance may vary across functional areas, as different digital applications generate distinct cost-benefit outcomes and time horizons.

Against this backdrop, this study examines the impact of digital transformation on the financial performance of construction enterprises in Ca Mau province. It contributes by providing localized empirical evidence, distinguishing between overall digital maturity and functional digitalization, and incorporating managerial characteristics to better explain firm-level financial performance.

2. Literature review and hypothesis development

2.1. Digital transformation and financial performance

The relationship between digital transformation and firm performance can be explained through the resource-based view (RBV) and dynamic capabilities theory. Under RBV, digital technologies can become strategic assets when effectively deployed (Barney, 1991), while dynamic capabilities emphasize the firm’s ability to integrate and reconfigure resources in response to environmental changes (Teece et al., 1997).

Digital transformation may enhance financial performance by improving information quality, reducing transaction costs, and strengthening process integration. However, prior studies highlight that its benefits depend on implementation quality and organizational alignment rather than mere adoption (Wang et al., 2020). Moreover, digitalization may generate adjustment costs and capability constraints, particularly in resource-limited firms, implying that performance effects may not be immediate or uniformly positive.

2.2. Functional digitalization in construction firms

Recent studies suggest that digital transformation should be examined at the functional level rather than as a uniform construct. In construction firms, digitalization can be applied across areas such as materials and equipment management, finance-accounting, human resources, and project management. Its impact depends on how well digital tools are integrated into operational processes (Samuelson & Stehn, 2023).

Digitalization in materials and equipment management is expected to improve performance by enhancing cost control and resource efficiency. In contrast, finance-accounting and project management digitalization often involve higher implementation costs and integration challenges. Evidence from ERP-related studies shows that performance gains depend on organizational alignment rather than technology adoption alone (Tarigan et al., 2021).

Accordingly, this study expects heterogeneous effects of digitalization across functions and adopts non-directional hypotheses where appropriate.

2.3. Owner characteristics and firm performance

Drawing on the literature and the logic of SME governance, the study proposes that owner age, education, managerial experience, overall digital transformation maturity, and functional digitalization are associated with firm financial performance.

3. Research model and methodology

3.1. Hypotheses and research model

H1: Owner age is associated with the financial performance of construction enterprises in Ca Mau province.

H2: Owner education is associated with the financial performance of construction enterprises in Ca Mau province.

H3: Managerial experience is associated with the financial performance of construction enterprises in Ca Mau province.

H4: Overall digital transformation maturity is associated with the financial performance of construction enterprises in Ca Mau province.

H5a-H5d: Digitalization in specific functional areas (HRM, finance-accounting, materials-equipment management, and project management) is associated with the financial performance of construction enterprises in Ca Mau province.

Figure 1. Proposed research model

                                                                                              (Source: Developed by the author)

3.2. Variable definition and model specification

The dependent variable is Return on Assets (ROA), selected because it captures the efficiency with which firms convert assets into profits and is particularly appropriate for an asset-intensive sector such as construction. Prior accounting and finance literature recognizes ROA as a stable and informative profitability indicator for cross-firm analysis (Fairfield & Yohn, 2001; Penman, 2013).

Table 1. Variable definitions and expected signs

The empirical model is specified as follows: ROA = β₀ + β₁Age + β₂Education + β₃Experience + β₄DX + β_5a DX_HRM + β_5b DX_FIN + β_5c DX_MAT + β_5d DX_PROJ + ε_i            

3.3. Data collection and analytical approach

The study uses primary survey data collected from construction enterprises operating in Ca Mau Province. The target respondents were firm owners or senior managers with sufficient knowledge of the firm’s operations and digitalization practices. A total of 152 valid questionnaires were retained for analysis. The sample size is adequate for a multivariate regression model with eight explanatory variables and is consistent with the general guidance that the number of observations should substantially exceed the number of predictors (Hair, Black, Babin, & Anderson, 2019). The survey instrument captured owner characteristics, overall DX maturity, the application of digitalization in four core functional areas, and firm financial information used to proxy ROA.

Ordinary Least Squares (OLS) was employed to estimate the model. Diagnostic testing focused on multicollinearity and heteroskedasticity. Because the Breusch-Pagan/Cook-Weisberg test indicated non-constant error variance, the final model was estimated with heteroskedasticity-robust standard errors.

4. Results and discussion

4.1. Diagnostic tests

The multicollinearity test indicates acceptable variance inflation factors. The mean VIF is 2.07, with individual VIF values ranging from 1.42 to 3.48. These values are well below the threshold commonly used to signal serious multicollinearity problems (Gujarati, 2004). Therefore, the explanatory variables can be retained in the model without concern that coefficient estimates are being distorted by excessive linear dependence.

The Breusch-Pagan/Cook-Weisberg test reports p = 0.0026, indicating heteroskedasticity. As a result, robust standard errors were used to obtain more reliable statistical inference.

4.2. Regression results

Table 2. OLS regression results with robust standard errors

Model summary: N = 152; R² = 0.561; overall model significance p < 0.001.

The regression results highlight the importance of managerial characteristics. Owner age, education, and managerial experience are positively and statistically significantly associated with ROA, suggesting that more capable managers enhance decision-making and resource allocation during digital transformation.

In contrast, overall DX maturity is not statistically significant, implying that digital transformation alone does not guarantee improved financial performance. This finding supports the view that value from DX depends on its effective integration into business processes rather than mere adoption (Verhoef et al., 2021).

At the functional level, the effects of digitalization are heterogeneous. Digitalization in materials and equipment management (DX_MAT) shows a positive and highly significant impact on ROA, reflecting its role in improving cost control and resource efficiency. Conversely, digitalization in finance–accounting (DX_FIN) and project management (DX_PROJ) exhibits negative short-term effects, likely due to high implementation costs and organizational adjustment requirements (Wang et al., 2020; Tarigan et al., 2021).

Digitalization in human resource management (DX_HRM) is not statistically significant, suggesting that its benefits are more indirect and less immediately reflected in financial performance.

Overall, the findings indicate that digital transformation should be evaluated at the functional level, with priority given to value-creating operational areas such as materials and equipment management.

5. Conclusion and implications

This study examines the impact of digital transformation on the financial performance of construction enterprises in Ca Mau province using a functional-area approach. The results indicate that overall DX maturity is not a significant determinant of ROA, while digitalization at the functional level yields heterogeneous effects. Specifically, digitalization in materials and equipment management improves financial performance, whereas finance-accounting and project management digitalization exhibit negative short-term impacts. Managerial characteristics remain positively associated with firm performance.

These findings suggest that firms should prioritize digital investments in value-creating operational areas, particularly materials and equipment management. More complex systems such as ERP and BIM should be implemented gradually, supported by training and organizational alignment. At the policy level, support should focus on both technology access and capability development.

This study is limited by its cross-sectional design and single-province scope. Future research could employ panel data, expand geographic coverage, and explore mediating mechanisms to better understand the impact of digital transformation.

References

Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.

Fairfield, P. M., & Yohn, T. L. (2001). Using asset turnover and profit margin to forecast changes in profitability. Review of Accounting Studies, 6(4), 371-385. https://doi.org/10.1023/A:1012430513430

Gujarati, D. N. (2004). Basic econometrics (4th ed.). McGraw-Hill.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage.

Penman, S. H. (2013). Financial statement analysis and security valuation (5th ed.). McGraw-Hill/Irwin.

Samuelson, O., & Stehn, L. (2023). Digital transformation in construction - a review. Journal of Information Technology in Construction, 28, 385-404. https://doi.org/10.36680/j.itcon.2023.020

Tarigan, Z. J. H., Siagian, H., & Jie, F. (2021). Impact of enhanced enterprise resource planning (ERP) on firm performance through green supply chain management. Sustainability, 13(8), Article 4358. https://doi.org/10.3390/su13084358

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.

Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889-901. https://doi.org/10.1016/j.jbusres.2019.09.022

Wang, H., Feng, J., Zhang, H., & Li, X. (2020). The effect of digital transformation strategy on performance: The moderating role of cognitive conflict. International Journal of Conflict Management, 31(3), 441-462. .

Tác động của chuyển đổi số đến hiệu quả tài chính của Cwincom hiện đang mở xây dựng tại tỉnh Cà Mau: Tiếp cận theo lĩnh vực chức năng

Bùi Đăng Khoa¹

Nguyễn Thị Yến Nhi¹

¹Trường Đại học Kỹ thuật - Công nghệ Cần Thơ

Tóm tắt

Nghiên cứu này phân tích tác động của chuyển đổi số (DX) đến hiệu quả tài chính của các Cwincom hiện đang mở xây dựng tại tỉnh Cà Mau theo cách tiếp cận theo lĩnh vực chức năng. Dữ liệu được thu thập từ 152 Cwincom hiện đang mở, với ROA được sử dụng làm đại diện cho hiệu quả tài chính. Mô hình bao gồm đặc điểm nhà quản lý, mức độ chuyển đổi số tổng thể và mức độ số hóa trong bốn lĩnh vực: quản lý nhân sự, tài chính - kế toán, quản lý vật tư - thiết bị và quản lý thi công/dự án. Phương pháp OLS với sai số chuẩn hiệu chỉnh được áp dụng. Kết quả cho thấy tác động của chuyển đổi số khác biệt giữa các lĩnh vực. Số hóa trong quản lý vật tư - thiết bị có tác động dương và có ý nghĩa thống kê, trong khi tài chính - kế toán và quản lý dự án có tác động âm trong ngắn hạn. Mức độ chuyển đổi số tổng thể không có ý nghĩa thống kê, trong khi đặc điểm nhà quản lý có tác động dương đến hiệu quả Cwincom hiện đang mở. Nghiên cứu gợi ý Cwincom hiện đang mở cần ưu tiên Cwin800 hàng ngàn khuyến mãi số vào các hoạt động tạo giá trị và triển khai theo lộ trình phù hợp.

Từ khóa: Cà Mau; chuyển đổi số; chuyển đổi số theo lĩnh vực chức năng; Cwincom hiện đang mở xây dựng; hiệu quả tài chính; ROA

[CWIN ✅ Nhà cái cờ bạc trực tuyến tốt nhất và Thương hiệu uy tín - Các kết quả nghiên cứu khoa học và ứng dụng công nghệ, số 10 năm 2026]