Factors Affecting on Intellectual Capital, Service Innovation, and Digital Transformation of Financial Industry in Vietnam

The paper studies factors of intellectual capital affecting service innovation in the financial industry in Vietnam. Intellectual capital includes human capital, structural capital, and relational capital. Based on the knowledge-based and innovation diffusion theories and the previous research, the study explains factors that influenced service innovation, digital transformation, and the relationship between digital transformation and service innovation. The research uses the pilot survey to identify factors affected and initially examine the research model of factors affecting service innovation of financial organizations in Vietnam. This research adopts the second-order model of intellectual capital to examine the relationship between human capital, structural capital, and relational capital. The effect of intellectual capital on service innovation is contingent upon digital transformation in the financial sector. It demonstrates a significant effect on advancing service innovation by enhancing digital transformation in an industry that is swiftly being shaped and altered by technological advancements. Some managerial implications are proposed in this industry.