Abstract

Purpose: This study aims to investigate the effects of customers’ perceived expectations on the intention transition into enterprises of household businesses in Hai Duong province, Vietnam. Research design, data and methodology: To address a critical research gap, the study integrates three theoretical frameworks including the Theory of Planned Behavior (TPB), the Expectation Confirmation Theory (ECT), and the Resource Dependence Theory (RDT). In addition, we use generalized structural equation modeling (GSEM) with data collected from 403 household businesses. Results: The findings indicate that customer expectations constitute the primary driver of household-to-enterprise transformation. Large domestic clients and government entities enforce transparency through mandatory electronic invoicing, while foreign customers require legal recognition, certifications, and compliance with cross-border logistics. These pressures make formalization a strategic necessity, thereby confirming the explanatory relevance of RDT and ECT. Conclusions: The study contributes to theory by extending TPB with customer expectation constructs, reframing ECT as a predictive behavioral mechanism, and enriching RDT with a proactive strategic dimension. From a managerial standpoint, the findings underscore the importance of complementing institutional reform with targeted capacity-building programs. This research provides valuable insights into the micro-foundations of business formalization in emerging economies.