Government policy, IT structure, business model innovation and dynamic capability: catalysts for firm performance enhancement

Small and medium‐sized firms (SMEs) encounter substantial obstacles in today’s rapidly changing economic landscape, primarily due to their restricted resources and management capacities. This study utilises the resource‐based view theory to investigate how government policies might assist SMEs in utilising their information technology (IT) infrastructure for digital transformation and enhancing firm performance. In the face of emerging technology and increased competition worldwide, SMEs must give utmost importance to innovation and the ability to adapt to achieve long‐term success. The study, utilising data from 658 SME participants in Vietnam, highlights the significant impact of government policies on shaping IT infrastructure and emphasises the significance of innovation in bolstering dynamic capacities and overall business success. These findings provide valuable insights for managers and policymakers, indicating prospective areas for future research that have consequences for SMEs.