La hoangvannam sum

MINISTRY OF EDUCATION AND TRAINING
NATIONAL ECONOMICS UNIVERSITY
----------------

HOÀNG VĂN NAM

WORK IS COMPLETED AT:
NATIONAL ECONOMICS UNIVERSITY
Science instructor: 1. Assoc.Prof.PhD. LÊ BA PHONG
2. Assoc.Prof.PhD. ĐÀO THỊ THANH LAM

Reviewer 1:

Reviewer 2:

IMPACT OF KNOWLEDGE MANAGEMENT ON FIRM
PERFORMANCE IN VIETNAMESE ENTERPRISES
Reviewer 3:

MAJOR: HUMAN RESOURCE MANAGEMENT
CODE: 9340404
Thesis is defended at the Thesis Judging Committee
National Economics University degree
At:….. hour, date …… month ……. year 2023

SUMMARY OF DOCTORAGE THESIS

The thesis can be found at:
- Vietnam National Library
- Library of National Economics University

Hanoi - 2023


1

2

INTRODUCTION

Stemming from the above theoretical and practical needs, the author
has chosen the topic: "Impact of knowledge management on firm
performance in Vietnam" to carry out research projects of doctoral
dissertation.
2. Research goals
2.1. Overall objectives
The research objective of the thesis is to test and estimate the model
on the impact of the knowledge process capability and knowledge
infrastructure capability on firm performance in Vietnamese enterprises,
including operating performance and market performance.
2.2. Detail objectives
Firstly, consider the impact of first-order construct of (1) knowledge
infrastructure capability and (2) knowledge process capability on business
performance, including (1) operating performance and (2) market
performance.
Secondly, consider the impact of second-order construct variables
that are (1) knowledge infrastructure capability and (2) knowledge process
capability on firm performance.
Thirdly, consider the impact of second-order construct variables that
are (1) knowledge infrastructure capability on (2) knowledge process
capability in Vietnamese enterprises.

Fourthly, based on resarch results, the author proposes solutions with
the aim of helping managers and leaders in the enterprise.
3. Research questions:
Question 1: Which theory is appropriate in studying the impact of
knowledge management on firm performance?
Question 2: How does knowledge infrastructure capability affect
firm performance?
Question 3: How does the knowledge process capability affect firm
performance?
Question 4: How does knowledge infrastructure capability affect the
knowledge process capability of Vietnamese enterprises?
Question 5: What solutions need to be taken to promote knowledge
process capability and knowledge infrastructure capability in Vietnamese
enterprises?

1. Research purposes
Today, the basis of competitive advantage in enterprises has shifted
from tangible resources to knowledge resources (Wong and Aspinwall,
2005; Tan and Wong, 2015). Knowledge is considered as a valuable asset
for all businesses (Alavi and Leidner, 2001; Lee and Choi, 2003). And
knowledge management is widely recognized as a tool to help enterprises
maintain a competitive advantage in the market (Nonaka and Takeuchi,
1995; Wong, 2005; Al-Mabrouk, 2006; Chang and Chuang, 2011). ; Mills
and Smith, 2011; Tseng and Lee, 2014; Grupta and Chopra, 2018).
In theory, current studies have not provided an integrated model to
assess the impact of knowledge management on business performance
(Payal et al., 2019). Many studies suggest that knowledge management
includes two aspects: knowledge infrastructure capability and knowledge
process capability (Gold et al., 2001; Mills and Smith, 2011; Tan and
Wong, 2015; Alaarj et al., 2016). However, current research has not yet

agreed on the elements that make up the knowledge infrastructure
capability and the knowledge process capability (Gold et al., 2001; Wong
and Aspinwall, 2005; Tan et al., 2001; Wong, 2015; Ngoc-Tan and Gregar,
2019). Therefore, this study has added the factor of “management
leadership and support” to knowledge infrastructure capability. At the same
time, previous studies often only evaluated the impact of knowledge
management on operating performance and ignored market performance, so
this thesis will evaluate the performance of enterprises as a combination of
operating performance and market performance. In addition, the author also
adds an item for the "technology" factor to suit the development of current
information technology.
In practice, most of the previous studies on the impact of knowledge
management on firm performance are usually carried out in developed
countries (Gold et al., 2001; Chang and Chuang, 2011). ;Pérez-López and
Alegre, 2012; Tan and Wong, 2015). Research on knowledge management
in Vietnam is still very new. Recently, Ngoc-Tan and Gregar (2019)
evaluated the impact of knowledge management on performance, but this
study was conducted in a higher education environment with knowledge
management activities and scale of performance is far different from the
production and business context in enterprises.


3

4

4. Objects and scope of the research
4.1. Objects of the research
The research object is the impact of knowledge management,
including 2 aspects: (1) knowledge infrastructure capability and (2)

knowledge process capability on firm performance. Accordingly, the
knowledge process capability and knowledge infrastructure capability will
be studied on the scale of the whole organization, not focusing on the level
of individuals. At the same time, the knowledge process capability and
knowledge infrastructure capability will be assessed by administrators and
leaders in enterprises in Vietnam. In addition, the thesis also focuses on
assessing the impact of second-order construct variables of (1) knowledge
infrastructure capability and (2) knowledge process capability on firm
performance including: Operating performance and market performance.
4.2. Scope of the research
Regarding research space: The thesis focuses on researching
enterprises in the fields of: Manufacturing, trading, services, information
technology, construction in 31 provinces/cities in all 3 North, Central and
South of Vietnam because these enterprises account for 79,59% of the
structure in the Vietnamese economy (Ministry of Planning and
Investment, 2022).
About research time: The thesis uses primary data based on surveys
by questionnaires for managers and leaders in enterprises in Vietnam in all
3 regions of North Central Vietnam since 2018 to present. However, the
survey questionnaire was conducted from May 1, 2021 to the end of
August 31, 2021. At the end of the survey, the author obtained 482
questionnaires that fully answered the information on the answer sheets
from 31 provinces/cities across the country.
Regarding research content: Although there are many approaches to
knowledge management in Vietnam and around the world, in this thesis,
the author has extended the research model of Gold et al (2001). ) and Mills
and Smith (2011) by adding the factor “management leadership and
support” to “knowledge infrastructure capability” to assess the impact of
(1) the knowledge process capability and (2) knowledge infrastructure
capability on firm performance including operating and market

performance in Vietnamese enterprises. Because the thesis deals with the
performance of the whole organization, the research scope of the thesis
only focuses on the organizational level of the enterprise and does not focus

on the individual level. At the same time, each enterprise selects only one
leader who is knowledgeable about knowledge management and
operational results to answer the survey questionnaire.
4.3. Research methodology
The thesis uses quantitative method with data processing tools such
as reliability analysis of the scale (Cronbach's Alpha), exploratory factor
analysis (EFA), descriptive statistics analysis, linear regression according
to least squares method (OLS) based on primary data collection for 482
enterprises in all three regions of North, Central and South in Vietnam.
5. New contributions of the thesis
In theory, the thesis has built an overall model to evaluate the impact
of knowledge management on firm performance. In which, the thesis has
added the element "management leadership and supprot" to knowledge
infrastructure capability. At the same time, previous studies often only
assessed the impact of knowledge management on operating performance,
so this thesis has evaluated firm performance in two aspects: Operating
performance and market performance. In addition, the author also adds an
item for the "technology" factor to suit Vietnamese businesses.
In practice, the thesis has pointed out the most important factors of
(1) the knowledge process capability and (2) the knowledge infrastructure
capability that affects market performance and operating performance in
Vietnames enterprises. At the same time, the thesis also points out the
direct impact of knowledge infrastructure capability on the knowledge
process capability in Vietnamese enterprises.
At the same time, based on the research results, the author has made
a number of recommendations and solutions to help competent leaders as

well as managers in the enterprise to come up with policies to promote
knowledge management process to improve operating performance as well
as expand the market in Vietnamese enterprises.
6. Structure of doctoral dissertation
In addition of introduction and conclusion, the content of the thesis is
presented in 4 chapters:
Chapter 1: Literature review and background theories
Chapter 2: Research methodology
Chapter 3: Research results
Chapter 4: Conclusion and recommendations


5

6

CHAPTER 1. LITERATURE REVIEW AND BACKGROUND
THEORIES
1.1. Definitions
1.1.1. Knowledge and knowledge classification
1.1.1.1. Knowledge definition
Knowledge is one of the most popular and sought-after terms in the
world (Holden, 2002). The scholars who have made the greatest and most
important contributions to the development of theories related to
knowledge include Kogut and Zander (1992), Nonaka and Takeuchi
(1995), Grant (1996), Davenport and Prusak (Kogut and Zander (1992),
Nonaka and Takeuchi (1995), Grant (1996), Davenport and Prusak (Kogut
and Zander (1992). 1998). This thesis uses the definition of Davenport and
Prusak (1998): “Knowledge is a fluid combination of experiences, values,
contextual information, and insights to provide a framework for assessment

and combination of experience and new information. Knowledge is derived
and applied in the minds of those who know. In organizations, knowledge
is not only contained in documents, or knowledge repositories, but also
contained in the processes, practices, and operating rules of the organization.
1.1.1.2. Knowledge classification
a. Tacit and explicit knowledge
Based on the research of Polanyi (1966), Nonaka (1994) has clearly
distinguished two concepts "hidden knowledge" and "exposed knowledge"
as follows:
Table 1.1. Compare tacit and explicit knowledge
Tacit knowledge
Explicit knowledge
Helps to adapt to new and special Can be disseminated, copied,
situations.
accessed and applied throughout the
organization.
Includes deep expertise, know-how, Use for training, development.
insight.
Ability to coordinate, share vision, Organize, organize, systematize, turn
communicate culture.
vision into mission statement as well
as guiding implementation.
Delivered through coaching, face- Delivered across products, services,
to-face and one-on-one.
and processes that are documented
or documented.
(Source: Dalkir, 2005)

b. Knowledge "experience" and knowledge "action"
Some types of organizational knowledge, such as values and beliefs,

are not reflected in systematized documents but are written into the brains
of individuals and cannot be transferred through formal documents. such as
email or official documents. Therefore, the way to make tacit knowledge
clear is to learn by “action” or learn by “experience”.
c. Human, social and structure knowledge
- Human knowledge: Usually expressed in the form of tacit knowledge.
Personal knowledge is perceptual and cognitive. Personal knowledge is
often felt or accumulated from an individual's previous experience.
- Social knowledge: Like individual knowledge, group knowledge is also a
form of "highly hidden" knowledge. Group knowledge is formed through
the process of interaction and coordination between individuals or groups
and is expressed through the capacity and coordination of working groups.
At the same time, the ability to effectively coordinate between individuals
or groups is a manifestation of social knowledge in the organization.
- Structure knowledge: Organizational knowledge is also known as
system knowledge. Organizational knowledge is different from personal
knowledge and social knowledge because it is completely independent of
the person/individual who holds the knowledge. Because systems
knowledge is “highly visible” knowledge, which is embodied in the
organization's system processes, operational processes, and databases.
1.1.2. Knowledge management
Carlino (2001) argued that innovation depends on changing the ideas
of employees in enterprises. At the same time, research by Kanter (1986)
confirms that the process of awareness and creation of new ideas is the
beginning stage of innovation. Therefore, many studies have suggested that
all innovation activities in enterprises originate from behavioral innovation
in enterprises (Janssen, 2000; Lumpkin and Dess, 1996; Lu et al., 2015).
For example, Janssen (2000) gave the definition of innovation work
behavior as “creating, introducing and intentionally applying new ideas in
work at businesses. businesses to benefit businesses ”(cited by Fu et al.,

2014; Omri, 2015). Lu et al. (2015) based on research by Scott and Bruce
(1994) suggest that innovation consists of three manifestations: forming
new ideas, promoting new ideas and applying new ideas.
In Vietnam and in the world today, there are many definitions and
ways of measuring knowledge management (Ho, 2009; Zaied et al., 2012).


7

8

However, most of the prominent studies in the world on knowledge
management have determined that knowledge management in enterprises
includes two aspects: (1) Knowledge infrastructure capability and (2) ) the
knowledge process capability (Davenport and Prusak, 1998; Gold et al.,
2001; Mills and Smith, 2011; Zaied et al., 2012; Ngoc-Tan and Gregar,
2019). From the overview of research works in the world, in this thesis, the
author gives the following definition of knowledge management:
Knowledge management includes two aspects: Knowledge
infrastructure capability and knowledge process capability. In particular,
the knowledge infrastructure capability creates conditions to promote the
knowledge process capability in enterprises, thereby helping enterprises
improve competitive advantages and achieve better firm performance.
1.1.3. Knowledge infrastructure capability
Knowledge infrastructure capacity is a set of factors supporting the
knowledge management process of enterprises, including 4 elements: (1)
organizational culture, (2) organizational structure, ( 3) technology, (4)
management leadership and support. Knowledge infrastructure capability
creates favorable conditions for employees to absorb knowledge as well as
encourages them to share and learn knowledge together to improve

productivity, thereby creating competitive advantages for employees and
better firm performance.
1.1.4. Knowledge process capability
The knowledge management process is a set of factors that enable an
enterprise to effectively use its internal and external knowledge resources
to achieve better performance and enhance competitive advantage in the
global marketplace. There are four factors in the market: (1) Knowledge
acquisition, (2) knowledge conversion, (3) knowledge application and (4)
knowledge protection. At the same time, the knowledge process capability
also helps businesses take advantage of the efficiency created by the
capability of the knowledge infrastructure.
1.1.5. Firm performance
Firm performance reflects a firm's ability to meet shareholder
requirements and survive in the market (Griffin, 2003).
Firm performance reflects the ability and results of the enterprise in
using resources such as people, finance and facilities to achieve objectives
(Medella et al., 2005).

Firm performance are financial and non-financial metrics used by an
enterprise to measure how well its results and objectives have been
achieved over a specified period of time. The performance of enterprises is
evaluated through operating performance and market performance.
- Market peformance: Includes indicators related to total sales, sales
growth, market share, competitive position and overall performance of the
business (Delaney and Huselid, 1996; Lu et al., 2015).
- Operating performance: Including indicators on the rate of return on total
assets (ROA), rate of return on sales (ROS); profitability, increase in total
assets and employee morale (Delaney and Huselid, 1996; Lu et al., 2015).
1.2. Relationships
1.2.1. Knowledge infrastructure capability and firm performance

Knowledge infrastructure capability includes 4 factors: (1)
Organizational culture, (2) organizational structure, (3) technology, (4)
management leadership and support. Many studies in Vietnam and around
the world have shown that knowledge infrastructure capability is a
particularly important capacity for the knowledge management process in
enterprises, helping enterprises to improve their knowledge, operating
performance and market performance (Gold et al., 2001; Lee and Choi,
2003; Lee et al., 2008; Liao et al., 2010; Mills and Smith, 2011; Chang and
Chuang, 2011; Wong and Wong, 2011; Zaied et al., 2012; Chuang et al.,
2013; Tan and Wong, 2015; Alaarj et al., 2016; Payal et al., 2019).
1.2.2. Knowledge process capability and firm performance
Knowledge process capability is a set of key competencies that
enable enterprises to implement knowledge management activities within
the organization, including four main factors: (1) Knowledge acquisition,
(2) knowledge conversion, (3) knowledge application and (4) knowledge
protection (Gold et al., 2001; Mills and Smith, 2011). Although currently,
researches in Vietnam and around the world have not yet agreed on the
factors in the process of knowledge management (Gold et al., 2001; NgocTan, 2019; Payal et al., 2019). But most studies have concluded that
knowledge management process positively affects the performance of
enterprises (Gold et al., 2001; Mills and Smith, 2011; Zaied, 2012; Noh et
al., 2014; Pérez-López and Alegre, 2012; Alaarj et al., 2016; Ngoc-Tan,
2019; Payal et al., 2019).
1.2.3. Innovation and firm performance
Currently, in Vietnam and in the world, there are very few studies on
the impact of knowledge infrastructure capability on the knowledge process
capability in enterprises. However, in previous studies of the world,


9

10

knowledge infrastructure capability is required as a set of supports to make
the knowledge management process of enterprises easier and more
convenient (Lee and Choi, 2003; Ho, 2009, Rehman and Iqbal, 2020). In
addition, the capacity of knowledge infrastructure not only helps the
enterprise's knowledge to be synchronously established, but also creates a
motivation for employees to develop knowledge as well as encourages
them to receive, transfer and sharing knowledge and experience in the
enterprise, thereby improving labor productivity and increasing operational
results for the whole enterprise (Ichijo et al., 1998; Gold et al., 2001; Mills
and Smith , 2011; Tan and Wong, 2015)..
1.3. Research gaps
Firstly, about the research model, the author has built an overall
model to evaluate the impact of knowledge management, including:
Knowledge infrastructure capability and knowledge process capability on
firm performance. In which, previous studies often only assessed the
impact of knowledge management on operating performance, this study
evaluated firm performance in two aspects: market performance and
operating performance. In addition, for knowledge infrastructure capability,
the author has added the factor "management leadership and support" to the
research model.
Secondly, in terms of research methods, the thesis uses two methods
at the same time: second-order construct and first-order construct. Secondorder construct analysis will help assess the overall impact of the
knowledge management on firm performance. In addition, the first-order
construct will help assess the impact of each element of knowledge
infrastructure capability and knowledge process capability on operating and
market performance. This will help come up with appropriate and specific
solutions for Vietnamese businesses.
1.4. Background theories

1.4.1. Resource based-view
The literature review shows that most of the studies in the world on
the impact of knowledge infrastructure capabilities on business
performance are using a resource-based view (Resource-based view). RBV)
(Holsapple and Joshi, 2001; Chuang, 2004; Mills and Smith, 2011; Tseng
and Lee, 2014; Barkar et al., 2016; Gürlek and Çemberci, 2020).
Studies on the resource-based perspective of Wernerfelt (1984) and
Barney (1991) suggest that if a business has resources that ensure all four

factors: (1) Value, (2) scarcity, (3) difficult to imitate or copy, and (4) nonsubstitutable, can create a sustainable competitive advantage over competitors.

Resources

- Value
- Rare
- Imperfect Imitability
- Non-substitutability

Compettitive
Advantage

Source: Barney (1991)
The researches of Rumelt (1984), Wernerfelt (1984), Barney (1991),
Gold et al (2001) suggest that the resource-based perspective does not just
stop at the "resources" inside the business. business, but also expanded with
the "capabilities" that the business owns. Thus, the resource-based
perspective is defined as firms using unique resources and capabilities to
create a sustainable competitive advantage over the long term (Chuang,
2004). And when businesses have a competitive advantage, it will help
increase operating performance for businesses, as well as help businesses

create sustainable profits for a long time (Wernerfelt, 1984; Barney, 1991;
Huselid, 1995; Denaley and Huselid, 1996; Rothenberg et al., 2015).
Therefore, based on the view of resources (RBV), it can be concluded that
knowledge infrastructure is a kind of "special capability" that helps enterprises
increase their competitive advantage and performance in the future.
1.4.2. Knowledge-based view
The knowledge-based view is derived from the resource-based view
because knowledge is a unique and extremely important resource for
creating competitive advantage. (Grant, 1996b). Most of the research in the
world on the impact of the knowledge management process on business
performance is based on the knowledge perspective put forward by Grant
(1996b) (Hsu and Sabherwal, 2011; Noh. et al., 2014; Donate and Pablo,
2014; Gürlek and Çemberci, 2020; Rehman and Iqbal, 2020).
Grant (1996b) argues that knowledge is the main and key productive
resource in creating business strategies as well as creating added value for
enterprises.
Firstly, enterprises can accumulate knowledge through regulations
and directives. In particular, regulations are standards established to
regulate the interaction between individuals and employees in the
organization. Directives are requests made by experts for the purpose of


11

12

instructing novices. Enterprises can issue regulations on work, salary and
bonus regimes or regulations on initiatives in the organization. Individual
employees will be more motivated to generate new ideas if they know they
will receive rewards. This will help businesses get more creative ideas from

individual employees (Nguyen Van Thang, 2015).
Secondly, enterprises can accumulate knowledge through sequence.
Sequence is the production process in the enterprise. The order stipulates
that employees in the enterprise must produce and strictly follow the
production stages sequentially in a separate time unit. In which, different
workers will have different work orders and regulations with separate time
periods (Nguyen Van Thang, 2015). Through the promulgation of orders
and procedures related to production and business activities, enterprises can
guide employees to thoroughly follow the steps in the working process,
thereby spreading the word. knowledge more easily. At the same time,
these sequences can be accumulated over time so that older workers can
easily interpret and transfer to newcomers.
Thirdly, businesses can accumulate knowledge through habits.
Habits are workers' actions, signals and responses that are repeated over a
long period of time and are difficult to change. Habits are developed by
teams working within a business over a relatively long period of time.
Habits allow complex interactions to occur between individuals
automatically. Therefore, enterprises can share and transfer knowledge
through changing habits as well as forming good habits of employees
through working groups. At the same time, the good habits of a certain
work group can be a good knowledge that is widely disseminated by the
enterprise to the whole company.
Fourthly, enterprises can accumulate knowledge through problem
solving as well as decision making by working groups. Problem solving is
often introduced to perform complex or unusual tasks (Nguyen Van Thang,
2015). Through the process of problem solving and decision making,
individuals in the working group will have the opportunity to exchange and
interact with each other, thereby forming new ideas to solve problems,
helping businesses industry can gain more knowledge.
Therefore, it can be concluded that the knowledge management

process helps businesses increase customer satisfaction, business reputation
as well as improve the efforts of employees. At the same time, the
knowledge management process also helps businesses easily adapt to the

change of the business environment, increase innovation as well as
accelerate the commercialization of products, while minimizing waste. ,
saving production costs, thereby improving business performance (Gold et
al., 2001; Mills and Smith, 2011; Supyuenyong and Swierczek, 2011).
1.5. Research model and hypothesises
1.5.1.
Research model
- Independent variable: Knowledge management includes two aspects: (1)
Knowledge infrastructure capability and (2) knowledge process capability.
Knowledge infrastructure capability includes four factors: (1)
Organizational culture, (2) organizational structure, (3) technology, and (4)
management leadership and support. And the knowledge process capability
has four factors: (1) Knowledge acquisition, (2) knowledge conversion, (3)
knowledge application and (4) knowledge protection.
- Dependent variable: Firm performance includes two aspects: (1)
Operating performance and (2) market performance.
Based on the theoretical basis and overview, the model is as follows:
Leadership
Technology
Structure

Knowledgeinfrastruture
capability

Operating

Culture
Firm performance
Acquisition
Market

Conversion
Application
Protection

Knowledge
process
capability
Figure 1.2. Research model
Source: According to the survey and analysis of the author


13
1.5.2. Research hypothesis
Hypothesis H1: Knowledge infrastructure capability has a positive impact
on firm performance.
Hypothesis 2: Knowledge management process has a positive impact on
firm performance.
Hypothesis 3: Knowledge infrastructure capability has a positive impact on
the knowledge process capability.
CHAPTER2. RESEARCH METHODOLOGY
2.1. Research design
The author used a combination of two methods: Qualitative research
and quantitative research. Qualitative research is used to add a measure of
“management leadership and support”. At the same time, with qualitative
research, the author has selected the most important and appropriate

indicators for knowledge infrastructure and knowledge management
process in the context of Vietnam's economy. Meanwhile, quantitative
research is used to test research hypotheses, as well as evaluate the impact
of independent variables on dependent variables in the research model. The
data used in the study were collected throughout the country including the
North, Central and South regions.

14
Literature Review

Research gaps

Background theories

Define measurement
variables and scales

Preliminary qualitative
research

Building and
standardizing

Official quantitative
research

Hypothesis testing

Research report

Conclusion, discussion
and recommendations

Figure 2.1. Research process
Source: Author's proposal
Step 1: Research overview: The research overview is applied to
systematize and find out the theoretical gaps related to the relationship
between the knowledge infrastructure capability and knowledge process
capability on firm performance.
Step 2: Research the theoretical basis: Through the study of
overview and theoretical basis, the author has developed research
hypotheses for independent variables, intermediate variables, dependent
variables and control variables as well as the preliminary scale of variables
in the research model between knowledge management and firm
performance.


15

16

Step 3: Preliminary qualitative research: After determining the
research overview and theoretical basis, the author has conducted
preliminary qualitative research. The purpose of qualitative research is to
select, test and identify the most important factors of knowledge
management and knowledge infrastructure that affect business
performance. At the same time, based on the research scale on knowledge
management and knowledge infrastructure of Gold et al (2001), the author
used qualitative research methods to select important indicators and the
most appropriate of knowledge management and knowledge infrastructure

in the context of enterprises in Vietnam. Besides, through qualitative
research, the author has also added a number of indicators for knowledge
process capability and knowledge infrastructure capability in enterprises in
Vietnam. In addition, through qualitative research, the author has also
adjusted the terms and styles used in the survey questionnaire to suit the
economic context of Vietnam.
Step 4: Formal Quantitative Research: After finishing the qualitative
research and correcting the Vietnamese scale, the author conducted a
formal quantitative research by collecting survey questionnaires from
businesses. industry in all 3 regions of North, Central and South of
Vietnam. The author conducted the construction of the questionnaire in two
ways. Firstly, the author designed a survey questionnaire on A4 paper and
sent it directly to businesses in Hanoi. Secondly, for businesses that are far
away due to geographical distance, the author has designed a survey
questionnaire on the Google Form application and sent it to the email
addresses of businesses for assistance in answering. The survey period took
place in 4 months from February 1, 2021 to May 1, 2021. The author sent a
total of 1.500 survey questionnaires to business partners and received 539
responses (35,9%) from 31 provinces and cities in all 3 regions of the
North, Central and South of Vietnam. At the same time, the subjects
selected to participate in the survey were Directors/Deputy Directors of
enterprises to ensure accuracy and representativeness. Because the Director
or Deputy Director are the ones who have the most accurate and
knowledgeable understanding of the production and business activities of
their business. The survey questionnaire consists of 60 questions, of which:
(1) Organizational culture (VH) has 6 questions, (2) organizational
structure (CC) has 7 questions, (3) technology (CN) has 5 questions, (4)
management leadership and support (LD) has 7 sentences, (5) knowledge
acquisition (TN) has 5 questions, (6) knowledge conversion (CG) has 6
questions, (7) knowledge application (UD) has 7 questions, (8) knowledge

protection (BV) has 7 questions, (9) operating performance (VHA) has 5
questions and (10) market performance (TT) has 5 questions. All the
questions in the survey questionnaire sent to businesses are designed on a
Likert scale from level 1 to level 5, in which level 1 is "strongly disagree"
and level 5 is "strongly agree".
For quantitative analysis for second-order construct variables, the
tools used include: Descriptive statistical analysis to determine the mean
and median values of the research data set. In addition, the author also uses
the reliability analysis of the scale of independent and dependent variables
according to Cronbach's Alpha coefficient, exploratory factor analysis
(EFA) to remove inappropriate observed variables as well as reducing a set
of many observed variables into a smaller set but keeping the original
information content and meaning. In addition, the author also uses the
correlation analysis method to evaluate the Pearson correlation coefficient
to determine the correlation relationship between the independent variables
and the dependent variables. Finally, the least squares linear regression
(OLS) method was used to test the research hypotheses. All these analytical
methods were performed using SPSS software version 20.
Besides, in addition to unidirectional variables, this study also uses multidirectional variables in the analysis. In which, the two independent
variables are the knowledge management process and the knowledge
infrastructure, while the dependent variable is the business results. The
knowledge management process is a collection of variables: (1) Knowledge
acquisition, (2) knowledge conversion, (3) knowledge application and (4)
knowledge protection. Meanwhile, knowledge infrastructure is a collection
of variables: (1) organizational culture, (2) organizational structure, (3)
technology, and (4) management leadership and support. The performance
of an enterprise is a collection of variables: (1) Operating performance and
(2) market performance.
Step 5: Report the research results: Finally, based on the estimated

results of the research model, the author will conclude and discuss the
research results. At the same time, the author also made some
recommendations to help businesses in Vietnam come up with appropriate
policies on knowledge management as well as create a cultural
environment for spreading knowledge for employees. activities,
contributing to promoting the performance of enterprises in Vietnam.


17

18

CHAPTER 3. RESEARCH RESULTS
3.1. Descriptive statistics research sample
The survey results show that the most respondents are directors in
enterprises with 279 people, accounting for 57,8%. In addition, the Deputy
Director had 203 respondents to the survey questionnaire, accounting for
42,2%. It can be seen that the response rate to the survey questionnaire
between the Director and the Deputy Director is relatively equal and there
is no big difference.
There is a clear difference in the educational level of the respondents
who responded to the survey questionnaire. In which, the most respondents
to the survey questionnaire were Masters with 239 people, accounting for
49,6%. Next is the university degree with 186 people, accounting for
38,6%. Intermediate/college level has 35 respondents, accounting for 7,2%.
And finally, the subjects who answered at least were PhDs with 22 people,
accounting for 4,6%.
Statistical analysis results show that the age group participating in
the survey the most is from 40 years old to under 50 years old with 235
people, accounting for 48,8%. And the age group participating in the

survey is at least over 60 years old with 32 people, accounting for 6,6%.
Besides, the age group from 30 to under 40 years old has 36 people,
accounting for 7,5%. And the age group from 50 to under 60 has 179
people, accounting for 37,1%.
3.2. Results of testing scales
3.2.1. Cronbach’s Alpha
The thesis evaluates the reliability of the scale according to
Cronbach's Alpha coefficient for each group of observed variables with the
criterion of excluding observations with total correlation coefficient < 0.3
and Cronbach's Alpha coefficient < 0.6 ( Hair et al., 1998). After testing
Cronbach's Alpha, all groups of factors give good results.
3.2.2. Exploratory factor analysis (EFA)
The results of the first exploratory factor analysis (EFA) for 50
independent variables with 8 factors show that the variables have
converged and are separate in each group. However, the LD7 indicator
"Leaders show support for knowledge management" has a factor loading
coefficient < 0.5, so it will be excluded from the research model (Hair et al.
events, 2018). After removing the LD7 indicator from the LD factor, the
author conducted the second exploratory factor analysis (EFA) for 49

independent variables with 8 groups of factors. The analysis results show
that all factors have converged and separate. At the same time, all
indicators have factor loadings greater than 0.5, so they qualify in EFA
analysis (Hair et al., 2018). In addition, the cumulative total explanatory
variance in the second EFA analysis for the independent variables was
74,060 > 50%, showing that the survey data explained more than 74% of
the variation of the variables in the research model. The study should have
very high reliability (Hair et al., 2018).
The results of exploratory factor analysis (EFA) and the reliability of
the scale according to Cronbach's Alpha coefficient showed that the

dependent variables had convergence and separateness. At the same time,
the observed variables all have factor loading coefficients greater than 0.5,
so they are satisfactory (Hair et al., 2018). Besides, the KMO coefficient in
the EFA analysis is 0.947 > 0.5, so it meets the standard (Hair et al., 2018).
In addition, the cumulative explanatory variance of the dependent variables
is 61,587, showing that the survey data explains more than 61% of the
variation of the variables in the research model.
3.3. Correlation analysis
The results of the correlation analysis show that the independent and
dependent variables are all correlated at 5% significance level. At the same
time, there is no pair of Pearson correlation coefficients between the
variables greater than 0.8, so there is no serious multicollinearity (Hoang
Trong and Chu Nguyen Mong Ngoc, 2008).
3.4. Linear regression analysis
3.4.1. First-order construct
Table 3.1. Regression results
Variables
1. VH
2. CC
3. LD
4. CN
5. TN
6. CG
7. BV
8. UD
R2
F

Operating performance (VHA)
P-value

VIF
β
0,193
0,000
1,705
0,112
0,002
1,462
0,145
0,000
1,897
0,097
0,002
1,154
0,211
0,000
2,167
0,135
0,000
1,209
0,062
0,087
1,490
0,208
0,000
1,444
0,583
84,972***

Market performance (TT)

P-value
VIF
β
0,139
0,009
1,705
0,075
0,124
1,462
0,079
0,153
1,897
0,072
0,096
1,154
0,085
0,152
2,167
0,091
0,040
1,209
0,004
0,934
1,490
0,186
0,000
1,444
0,218
17,753***

(Source: According to the author's analysis)


19

20

For operating performance, the p-value coefficients of the variables:
(1) Organizational culture, (2) organizational structure (CC), (3)
management leadership and support (LD), (4) technology, (5) knowledge
acquisition (TN), (6) knowledge transfer (CG) and (7) knowledge
application (UD) are 0,000, respectively; 0,002; 0,000; 0,002; 0,000; 0,000
and 0,000 < 0,05 should have a positive impact on operating results in
enterprises in Vietnam. Meanwhile, knowledge protection (BV) has a pvalue coefficient of 0.087 > 0.05, so it does not have a positive impact on
operating performance. At the same time, the standardized coefficient of
(1) Organizational culture, (2) organizational structure (CC), (3)
management leadership and support (LD), (4) technology, (5) knowledge
acquisition (TN), (6) knowledge conversion (CG) and (7) knowledge
application (UD) are: 0,193; 0,112; 0,145; 0,097; 0,211; 0,135 and 0,208,
so it can be concluded that knowledge acquisition has the greatest impact
on business performance. In addition, the adjusted R2 coefficient of the
regression model is 0,583, showing that the independent variables explain
58,3% of the change of the dependent variables. Besides, the variance
exaggeration coefficients (VIF) of the independent variables < 4, so there is
no serious multicollinearity (Hair et al., 2018).
For market performance, the p-value coefficients of the variables: (1)
Organizational culture (VH), (2) technology (CG) and (3) knowledge
application (UD) respectively is: 0,009; 0,040 and 0,000 < 0,05 should
have a positive impact on market performance in Vietnamese firms. In
which, the coefficient standardized β (1) corporate culture (VH), (2)

technology transfer (CG) and (3) knowledge application are: 0,139; 0,091
and 0,186, so it can be concluded that knowledge application (UD) has the
greatest impact on market performance of Vietnamese enterprises.
Meanwhile, the variables of organizational structure (CC), technology
(CN), knowledge-oriented leadership (LD), knowledge acquisition (TN)
and knowledge protection (UD) have coefficient p-value > 0,05 should not
affect the market results. Besides, the adjusted R2 coefficient is 0,218,
showing that the independent variables explain 21,8% of the variation of
the dependent variables in the research model. In addition, the variance
exaggeration factor (VIF) of the independent variables are all less than 4,
so there is no serious multicollinearity (Hair et al., 2018).

3.4.2. Second-order construct
The results of the linear regression analysis show that the p-value of the
F-test is 0.000, so the model is statistically significant. At the same time,
the p-value coefficients of the composite variables: (1) Infrastructure and
(2) knowledge management are 0.000 < 0.05, so it has a positive impact on
operational results. activities of Vietnamese enterprises. Besides, the
standardized coefficients of multi-directional variables (infrastructure) and
(2) knowledge management (information management) are 0.377 and
0.341, respectively, so the knowledge infrastructure (infrastructure) affects
the operational results. (KQHD) is larger than knowledge management
(CRM). In addition, the variance exaggeration factor (VIF) of the
independent variables is 2.009 < 4, so there is no serious multicollinearity
(Hair et al., 2018).
Infrastruct

0,377*
Performan

Process

0,341*

(Source: According to the author's analysis)
The results of the linear regression analysis show that the p-value of
the F-test is 0,000, so the model is statistically significant. At the same
time, the p-value coefficient of the aggregate variable of infrastructure is
0,000 < 0,05, so it has a positive impact on the knowledge management
process of Vietnamese enterprises. Besides, the normalized coefficient β is
0,790. In addition, the variance exaggeration factor (VIF) of the
independent variable is 1,000 < 4, so there is no serious multicollinearity
(Hair et al., 2018). The results of second-order construct variables are
shown in the figure below:
CSHT

0,709

QTTT

(Source: According to the author's analysis)


21

22

CHAPTER 4. RESULTS DISCUSSION AND CONCLUSION
4.1. Results discussion
4.1.1. First-order construct

The results of linear regression analysis in Table 3.18 show that
organizational culture (VH) has a positive impact on operating results
(VHA) (β = 0.193; p – value = 0.000) and market performance (TT) (β =
0.139; p – value = 0.009). This result is similar to the results of Araarj et al.
(2012) in Turkey and Zaied et al (2012) in Egypt but different from Mills
and Smith (2010) in the United States. This result shows that businesses
need to focus on investing in building a knowledge-oriented corporate
culture to improve operational results as well as expand markets.
The results of linear regression analysis show that organizational
structure (CC) has a positive impact on operating results (VHA) (β =
0.112; p – value = 0.002) but does not affect the market performance (TT)
(β = 0.075; p – value = 0.124). This result is similar to the results of Mills
and Smith (2010) in the United States, Zaied et al. (2012) in Egypt, Araarj
et al. (2012) in Turkey.
The results of linear regression analysis show that technology in
enterprises has a positive impact on operating results (VHA) (β = 0,097; pvalue = 0,002) but does not affect market results (TT) (β = 0.072; p–value
= 0,096). This result is similar to the results of Araarj et al. (2012) in
Turkey and Zaied et al. (2012) in Egypt but different from Mills and Smith
(2010) in the United States.
The results of linear regression analysis show that management
leadership and support has a positive impact on operating performance
(VHA) (β = 0,145; p-value = 0,000) but does not affect on market
performance (TT) (β = 0.079; p–value = 0,153). This result is similar to the
study of Rehman and Iqbal (2020), Gürlek and Çemberci (2020) in Turkey,
Khalifa (2020) in the United Arab Emirates (UAE).
The results of linear regression analysis show that knowledge
acquisition has a positive impact on operating results (VHA) (β = 0,211; pvalue = 0,000) but does not affect on market performance (TT) (β = 0.085;
p–value = 0,152). This result is similar to the results of Mills and Smith
(2010) in the United States, Zaied et al. (2012) in Egypt, Araarj et al.
(2012) in Turkey. This result shows that acquiring or receiving new

knowledge is especially important in enterprises in Vietnam as well as in
the world.

The results of the linear regression analysis show that knowledge
conversion has a positive impact on both operating performance (VHA) (β
= 0,135; p–value = 0,000) and market performance (TT) (β = 0,091; p–
value = 0,040). This result is similar to the results of Araarj et al. (2012) in
Turkey and Zaied et al (2012) in Egypt but different from Mills and Smith
(2010) in the United States.
The results of linear regression analysis show that knowledge
application has a positive impact on both operating performance (VHA) (β
= 0,208; p-value = 0,000) and market performance (TT) (β = 0.186; p –
value = 0.000) in enterprises in Vietnam. This result is similar to the results
of Mills and Smith (2010) in the United States, Araarj et al. (2012) in
Turkey as well as Zaied et al. (2012) in Egypt.
The results of linear regression analysis show that knowledge
protection has no positive impact on both operational results (VHA) (β =
0,062; p – value = 0,087) and market performance (TT) (β = 0.004; p –
value = 0.934) in enterprises in Vietnam. This result is different from the
results of Mills and Smith (2010) in the United States as well as Zaied et al.
(2012) in Egypt.
4.1.2. Second-order construct
The results of linear regression analysis show that knowledge
infrastructure capability has a positive impact on the firm performance,
including operating performance and market performance (β = 0,377; p–
value = 0,000). At the same time, the knowledge infrastructure has a
greater impact on performance than the knowledge management process.
The results of this thesis are similar to previous studies of Gold et al.
(2001) in the US as well as the study of Mills and Smith (2010) in the US.
In addition, the research results also show that knowledge

infrastructure has a positive impact on the knowledge management process
of enterprises (β = 0,709; p-value = 0,000). This result is similar to the
study of Payal et al. (2019) in India. Therefore, it can be seen that
knowledge infrastructure is an important premise to help businesses easily
implement knowledge management processes. This indicates that
businesses that want to implement the knowledge management process
must first build a strong knowledge infrastructure.
The results of the linear regression analysis show that the knowledge
management process has a positive impact on the performance results of
enterprises, including operational results and market results (β = 0,341; p–


23

24

value = 0,000). The results of this thesis are similar to previous studies of
Gold et al. (2001) in the United States as well as the study of Mills and
Smith (2010) in Jamaica.
4.2. Solution and recommendation
The results of this study are not only meaningful in theory but also in
practical terms for Vietnamese enterprises in the field of knowledge
management. The field of knowledge management has been studied by
many scholars around the world (Gold et al., 2001; Wong and Aspinwall,
2005; Mills and Smith, 2010; Araarj et al., 2012; Zaied et al., 2012). events,
2012). These studies all show that when businesses perform well the
knowledge process capability, it will help businesses improve labor
productivity, and at the same time promote enterprises to achieve their
long-term goals as well as improve their performance, high competitiveness
in the market. However, similar studies on knowledge management in

Vietnam are still relatively new and have not received much attention.
Therefore, the results of this study are a useful suggestion for middle and
senior managers in enterprises to make policies that are consistent with
reality to bring the most benefits to the business.
Among the elements of knowledge infrastructure capability,
operatioanl culture has the greatest impact on operational and market
performance. Therefore, business managers need to focus on building
operational culture to increase firm performance as well as expand markets.
In addition, managers also need to pay attention to other factors such as
organizational structure, management leadership and support, technology,
all of which have a positive impact on firm performance.
In addition, for the knowledge process capability, the estimated
results show that knowledge acquisition and knowledge application have a
positive impact on business performance. Therefore, managers in
enterprises need to motivate employees to acquire knowledge both inside
and outside the enterprise so that employees can apply new skills and
knowledge to the production process, thereby improving labor productivity,
contributing to increasing operating performance and expanding markets
for businesses. At the same time, managers also need to come up with a
policy to encourage employees to share knowledge, as well as organize
short-term and long-term training courses so that employees can promptly
grasp the skills and knowledge for working process. This will help

employees complete their work well, contributing to promoting the overall
performance for the whole enterprise.
Besides, State management agencies also need to issue policies or
guidelines to encourage vocational training and skills training with the aim
of improving skills and knowledge for people of working age to increase
quality human resources for enterprises. This will contribute to economic
growth and social stability.

CONCLUSION
By linear regression analysis by least squares method (OLS) for a
sample size including 482 enterprises in all three regions of North, Central
and South of Vietnam, the estimated results for multi-variable variables
shows that knowledge infrastructure capability and knowledge process
capability positively affect firm performance. Besides, knowledge
infrastructure capability also positively affects the knowledge process
capability in Vietnamese enterprises. In addition, organizational culture,
knowledge acquisition and knowledge application positively affect both
operating performance and market performance.
Based on the research results of the thesis, the author has made some
recommendations and proposals related to the improvement of knowledge
infrastructure capacity and knowledge management process in enterprises
in Vietnam. Because knowledge is a particularly valuable and scarce
resource that competitors cannot imitate or copy. Therefore, managers in
enterprises need to focus on building a strong organizational culture,
continuously innovating technology, creating a flexible organizational
structure, and leaders also need to take the lead. and prioritizing the
development of knowledge in the enterprise. In addition, managers also
need to plan knowledge management. In particular, enterprises need to
focus on encouraging employees to acquire knowledge from both inside
and outside the enterprise, and at the same time share new knowledge to
create an atmosphere of knowledge innovation, thereby promoting
innovation and creativity in production, helping the company increase
profits as well as overall operating results.


LIST OF RESEARCH WORKS
BY THE AUTHOR RELATED TO THESIS THEME
1.

2.

3.

4.

Hoàng Văn Nam (2022), ‘Impact of knowledge infrastructure
capability on firm performance in Vietnamese enterprises’, Journal
of Economics & Development, 302(2), 101-110.
Hoàng Văn Nam (2022), ‘Current status of knowledge management
process in enterprises in Vietnam’, Economy & Forecast Review, 21,
133-136.
Hoàng Văn Nam (2022), ‘Literature review on the relationship
between knowledge management process capability and firm
performance’, Proceedings of the National Scientific Conference:
“The role of young knowledge in the digital economy”, National
Economics University Publishing House, 4th, 331-344.
Hoàng Văn Nam (2022), ‘Literature review on the impact of
knowledge infrastructure capabilities on business performance’, Asia
– Pacific Economic Review, Article volume, 34-36.