Abstract

It is widely acknowledged that enhancing innovation capability is an inevitable requirement for the survival and sustainable growth of firms operating in the information technology sector. Therefore, this study was conducted to explore the relationship among organizational culture, knowledge management and innovation capability in the open innovation environment to provide useful suggestions and recommendations for managerial practices within the high-tech industry. Primary data collected from 182 high-tech firm’s representatives were processed by using the Structural Equation Modeling approach. The results showed that knowledge management was strongly correlated with innovation capability. The positively significant relationship between organizational culture and knowledge management was also confirmed. Overall, the findings suggest that an open innovation culture of an organization in which mutual trust, collaboration and learning are promoted by supportive and participative leaders is more likely to increase the efficiency of knowledge management practices; thus, eventually lead to enhanced innovation capability of the firm.

Highlights

  • The information technology (IT) industry in Vietnam has grown rapidly in recent years, contributing a significant proportion of market share to the growth of the economy.Especially after the introduction of digital transformation, the IT sector quickly became one of the most attractive industries in Vietnam

  • Firms no longer seek competency and sustainable growth in allocating existing limited natural resources but in innovating and creating intellectual assets [4]. This is especially crucial in the case of organizations in the IT sector as improving innovation capability is an inevitable requirement for survival and long-term growth

  • The partial least squares (PLS-Structural Equation Model (SEM)) approach is highly appropriate for analyzing a complex research model with multiple simultaneous relationships among variables, which is common in the business management research field [57]

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Summary

Introduction

The information technology (IT) industry in Vietnam has grown rapidly in recent years, contributing a significant proportion of market share to the growth of the economy.Especially after the introduction of digital transformation, the IT sector quickly became one of the most attractive industries in Vietnam. It is noticeable that the high-tech market gains favorable evaluations from domestic investors and foreign investors, evidenced by the fact that, in 2018, this industry received 2.1 billion USD of foreign direct investment Such fast transitions and development have created intensive competition in the industry, which can be considered as an exploitable opportunity as well as a major challenge for IT firms’ growth and survival. Firms no longer seek competency and sustainable growth in allocating existing limited natural resources but in innovating and creating intellectual assets [4] This is especially crucial in the case of organizations in the IT sector as improving innovation capability is an inevitable requirement for survival and long-term growth

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