Digital Transformation: A Catalyst and Barrier to Sustainable Management Accounting Systems in Commercial Banks

Abstract

This study aims to explore and interpret the dual role of digital transformation, acting as both a catalyst and a barrier to the development and implementation of sustainable management accounting systems in Vietnamese commercial banks. Using a qualitative multiple case study methodology, the paper conducted in-depth interviews with 15 senior and middle managers from 5 leading commercial banks. The research findings reveal a distinct dual role: on the positive side, digital transformation is a driving force for modernizing ESG data collection and enhancing the capacity to analyze and model complex risks such as climate risk. However, it also creates significant barriers related to the burden of investment costs, the complexity of system integration, issues with input data quality, and particularly a critical shortage of human resources with combined technological and sustainability competencies, alongside the inertia of organizational culture. The study thus affirms that technology alone is insufficient to drive this transformation. A key practical implication is that to successfully leverage digital transformation for sustainability goals, banks must adopt an integrated strategy, investing concurrently in four pillars: a flexible technology platform, a robust data governance framework, the development of interdisciplinary human capabilities, and a culture led by strong commitment from senior leadership.