The impact of knowledge management on innovation in small and medium enterprises in Vietnam

Abstract

This article aims to examine the impact of knowledge management processes - acquisition, creation, sharing, storage, and utilisation - on innovation within small and medium enterprises (SMEs) in Vietnam. Using a quantitative approach, we collected primary data from SME managers via a structured questionnaire and employed multiple regression analysis to test our hypotheses. The findings indicate that all knowledge management processes positively influence innovation, with knowledge sharing exerting the most significant impact. This highlights the crucial role of facilitating knowledge exchange among employees and external stakeholders in driving creativity and improving business performance. Based on these findings, the study offers practical recommendations for SME managers, emphasising the need to develop structured knowledge-sharing systems, invest in knowledge storage mechanisms, and effectively leverag existing expertise to promote innovation. Furthermore, policymakers are encouraged to create supportive environments that enable SMEs to effectively implement knowledge management strategies. By strengthening these processes, Vietnamese SMEs can enhance their innovation capacity and achieve long-term sustainability in an increasingly competitive market.