The IT paradox: how strategic alignment drives business model transformation intention in emerging market professional service firms – evidence from Vietnam

Digital transformation is imperative for Professional Service Firms (PSFs) in emerging economies, yet the mechanism linking technology adoption to business model transformation remains underexplored. Integrating the Technology-Organization-Environment (TOE) framework with the Theory of Strategic Fit, this study investigates the determinants of Business Model Transformation Intention in Vietnamese accounting and auditing firms. Data collected from 152 managers were analyzed using partial least squares structural equation modeling (PLS-SEM). The results indicate that Client Digital Acceptance and Internal Strategic Signals are strong drivers of Strategic Digital Alignment. However, Technological Readiness exhibits a statistically significant negative effect, suggesting an ‘IT Paradox’ where static infrastructure may create coordination complexity without corresponding dynamic capabilities. Crucially, Strategic Digital Alignment acts as a mediating mechanism, translating these drivers into a concrete intention to transform the business model. This study challenges the assumption that more technology is always better, providing empirical evidence that, in emerging markets, transformation is a ‘constrained adaptation’ driven more by strategic coherence, leadership intent, and client pressure than by mere technological asset accumulation.