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Strategic knowledge management, innovation and firm performance: An empirical study in Vietnamese firms

Strategic knowledge management, innovation and firm performance: An empirical study in Vietnamese firms. The main purpose of this paper is to test the relationship between strategic knowledge management, innovation and firm performance in the Vietnamese context. Our results show that strategic knowledge management significantly enhances innovation and organizational performance. | Journal of Economics and Development, Vol.16, No.1, April 2014, pp. 60-73 ISSN 1859 0020 Strategic Knowledge Management, Innovation and Firm Performance: An Empirical Study in Vietnamese Firms Nguyen Quoc Duy National Economics University, Vietnam Email: nqduy@bsneu.edu.vn Vu Hong Tuan National Economics University, Vietnam Email: tuanvh39@yahoo.com Abstract The main purpose of this paper is to test the relationship between strategic knowledge management, innovation and firm performance in the Vietnamese context. Our results show that strategic knowledge management significantly enhances innovation and organizational performance. It is also seen as playing an important mediating role in innovation between strategic knowledge management and firm performance. Although codification and personalization knowledge management strategies both have impact on innovation and performance, personalization knowledge management strategy has the dominant impact. Keywords: Knowledge management strategy, innovation, performance, Vietnam. Journal of Economics and Development 60 Vol. 16, No.1, April 2014 1. Introduction terprises by enhancing innovation and innovativeness. He proposes that management’s role should be “to carefully combine activities which enable and encourage ideas to be generated and grown, support their diffusion, and harvest the value for the organization”. He argues that knowledge management is one way of achieving this with some success. Darroch (2005) emphasizes the importance of knowledge management to enhance innovation and performance within enterprises. Her study provides empirical evidence that an enterprise that is knowledge management proficient will be more innovative and will perform better. Chandy and Tellis (1998) state that knowledge resource and core competencies developed from the knowledge resource are fundamentals for product innovation. It is widely recognized that knowledge is an essential strategic resource for a firm to .