KNOWLEDGE MANAGEMENT IMPACT ON INNOVATION CAPACITY OF PRIVATE ENTERPRISES IN VIETNAM: THE ROLE OF DIGITALIZATION

Abstract

The innovation potential of an organization hinges upon the efficacy of its knowledge management framework, a domain meriting deeper scrutiny by emerging scholars. This study investigates how different aspects of knowledge management—such as generation, sharing, and application—affect innovation capacity in private Vietnamese enterprises. It also examines how digitalization moderates these relationships. Surveys collected primary data, and smart-PLS analysis was used to assess reliability and correlations. Results highlight a positive link between knowledge management dimensions and innovation capacity. Moreover, digitalization emerges as a significant moderator in shaping the relationship between knowledge management processes and innovation capacity among private enterprises in Vietnam. This research provides valuable insights for policymakers seeking to formulate strategies aimed at bolstering innovation capacity through the effective deployment of knowledge management systems.