The Impact of Extended TOE Factors on E-commerce Adoption and Financial Performance of SMEs in Vietnam

Thu Phuong Pham; Trong Duc Tran; Thi Thu Giang Luong; Khanh Linh Dinh; Phuong Thao Bui Vu; Thanh Uyen Do

doi:10.36948/ijfmr.2026.v08i01.66742

The Impact of Extended TOE Factors on E-commerce Adoption and Financial Performance of SMEs in Vietnam

Author(s)	Ms. Thu Phuong Pham, Mr. Trong Duc Tran, Ms. Thi Thu Giang Luong, Ms. Khanh Linh Dinh, Ms. Phuong Thao Bui Vu, Ms. Thanh Uyen Do
Country	Vietnam
Abstract	Despite the substantial benefits that e-commerce can bring to small and medium-sized enterprises (SMEs), its adoption rate among Vietnamese SMEs remains relatively low. Identifying the key factors that drive e-commerce adoption is therefore essential. Existing studies have primarily focused on large-scale enterprises, leaving empirical evidence on e-commerce adoption among SMEs—particularly in the Vietnamese context—relatively scarce. While some research has addressed SMEs, these studies often employ simplified analytical frameworks that do not fully capture the TOE factors shaping e-commerce adoption decisions. This study examines the impact of an extended Technology–Organization–Environment (TOE) framework on e-commerce adoption and the financial performance of Vietnamese SMEs, with digital capability and operational performance acting as mediating variables. The research model incorporates eight determinants: AI integration, firm capability, customer technology savviness, innovative culture, information culture, competitive pressure, business partner pressure, and government support. This study employs a mixed-methods approach, combining expert interviews with a survey of Vietnamese SMEs engaged in e-commerce. Data were collected from 301 SMEs through an online survey. Measurement reliability and validity were assessed using Cronbach’s Alpha and Exploratory Factor Analysis (EFA) in SPSS. Partial Least Squares Structural Equation Modeling (PLS-SEM) was then applied using SmartPLS to evaluate the measurement and structural models. The results show that AI integration and firm capability exert the strongest influence on e-commerce adoption, while information culture and customer technology savviness have relatively weaker effects. Furthermore, e-commerce adoption improves SMEs’ financial performance indirectly through enhanced operational performance. These findings provide useful insights for managers and policymakers aiming to promote effective e-commerce adoption among Vietnamese SMEs.
Keywords	E-commerce, SMEs, Financial Performance, TOE Framework, Vietnam.
Field	Mathematics > Economy / Commerce
Published In	Volume 8, Issue 1, January-February 2026
Published On	2026-01-23
DOI	https://doi.org/10.36948/ijfmr.2026.v08i01.66742

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The Impact of Extended TOE Factors on E-commerce Adoption and Financial Performance of SMEs in Vietnam

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