ANALYSIS OF FACTORS AFFECTING INNOVATION ADOPTION DECISIONS IN PRIVATE ENTERPRISES IN VIETNAM

Abstract

In the realm of organizational performance enhancement, the adoption of innovation stands out as a pivotal factor. It necessitates a renewed focus from researchers. Consequently, this study delves into the influence of knowledge management, employee retention, and customer relationship management (CRM) on the decisions regarding innovation adoption within private enterprises in Vietnam. Additionally, the research explores the moderating role of leadership style in the relationship between knowledge management, employee retention, CRM, and innovation adoption decisions in these enterprises. Data for the study is collected through surveys administered to employees of private enterprises, and the structural equation modelling technique, specifically smart-PLS, is employed to analyse the interconnections among the variables. The findings indicate positive correlations between knowledge management, employee retention, CRM, and innovation adoption decisions. Moreover, they underscore the significant moderating effect of leadership style on the relationship between these factors and innovation adoption decisions within private enterprises in Vietnam. The implications of these findings extend to policymakers, offering insights for the development of policies aimed at fostering innovation adoption within the private sector.