Purpose: This study develops an integrated framework to examine the combined impact of digital transformation, innovation capability, and sustainability on startup performance, emphasizing the mediating roles of operational efficiency and sustainable brand positioning. Unlike prior research that examines these factors separately, this study bridges critical gaps by offering a holistic perspective on their interactions in Vietnam, an emerging economy.
Design/methodology/approach: A quantitative approach using PLS-SEM was applied to data from 320 startup managers and founders in Vietnam. This method captures direct and mediating effects, revealing how startups optimize digitalization, innovation, and sustainability to enhance performance.
Findings: Results indicate that digital transformation and innovation capability enhance operational efficiency, while sustainability practices and social capital strengthen brand positioning. Operational efficiency and brand positioning act as key mediators, magnifying startup performance. The model explains 52.1% of the variance in startup success.
Research limitations/implications: This study extends Resource-based view (RBV) and Dynamic capabilities theory by demonstrating how technology and innovation-driven advantages translate into competitive performance gains. However, findings are limited to Vietnam, and the cross-sectional nature of the data restricts long-term causal insights. Additionally, self-reported data may introduce response bias. Policymakers should expand digital infrastructure and regulatory support, while entrepreneurs should integrate innovation, sustainability, and branding strategies to enhance scalability.
Originality/value: This study contributes to the literature by empirically examining the interconnected effects of digital transformation, innovation, and sustainability in Vietnam. By identifying operational efficiency and sustainable brand positioning as key mediators, it uncovers previously unexplored pathways driving startup success in emerging markets.