Determinants of Digital Transformation Adoption in the Governance of Agricultural Cooperatives: Evidence from Vietnam

Digital transformation in agricultural cooperatives remains critically underdeveloped in emerging economies, yet the determinants of its adoption are poorly understood within the cooperative governance context. This study investigated the multidimensional factors shaping digital transformation adoption among fruit-growing cooperatives in Son La province, Vietnam, one of the country's most strategically significant agricultural regions. As digital transformation becomes increasingly essential for enhancing productivity, transparency, and competitiveness in the agricultural sector, understanding the drivers and barriers specific to cooperative organizations operating in mountainous and resource-constrained regions remains both timely and necessary. Using an integrated Technology-Organization-Environment (TOE) framework extended with the Diffusion of Innovations (DOI) model and a managerial capability dimension, this study employs a rigorous mixed-method approach that combines quantitative survey analysis with qualitative insights gathered from in-depth discussions with cooperative leaders. Survey data were collected from 300 managers and members across 50 representative cooperatives and subsequently analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS. The model demonstrates strong explanatory power (R² = 0.748), and all 11 hypotheses were supported. Among the factors examined, managerial factors, most notably managerial digital competence (β = 0.361, p = 0.001) and competitive pressure (β = 0.309, p = 0.004), emerged as the strongest positive drivers, functioning as key catalysts that exert a strong and consistent influence on cooperative readiness and willingness to embrace digital technologies. In contrast, organizational capacity, particularly human resource capacity deficits (β = −0.503, p < 0.001), constituted the most significant barrier, creating a structural bottleneck that hampers digital initiatives, delays implementation, and reduces the overall effectiveness of transformation efforts. This study extends the TOE framework by formally incorporating managerial capability as a fourth contextual dimension, offering both theoretical advancement and practical guidance for policymakers and cooperative managers seeking to accelerate digital agriculture in mountainous, resource-constrained settings across emerging economies.