Enhancing firm performance through innovation: the roles of intellectual capital, government support, knowledge sharing and knowledge management success

Abstract

Purpose This study determines whether government support for innovation (GSFI), knowledge sharing, knowledge management success (KMS) and intellectual capital (IC) strengthens the relationship between firm innovation and performance in the manufacturing industry in Vietnam. Design/methodology/approach A theoretical model and related hypotheses on manufacturers in Vietnam were developed based on the resource-based view and knowledge-based view. Data were collected from 361 respondents through a structured questionnaire and analyzed by partial least squares-structural equation modeling. Findings GSFI and IC significantly and positively influence firm innovation and performance. However, knowledge sharing does not affect firm innovation. Moreover, KMS fully mediates the positive relationship between knowledge sharing and firm innovation, and firm innovation partially mediates the positive relationships of IC and government support with firm performance. Practical implications The findings show how managers can utilize IC, KMS and government assistance to maximize the benefits of innovative outcomes and improve business performance. Originality/value This groundbreaking study creates a research model incorporating IC, knowledge sharing, KMS, GSFI, firm innovation and firm performance by extending two theories. Although the effects of various intangible assets on firm performance have been discussed extensively in the literature, there has been limited focus on the significance of KMS, knowledge sharing, IC and GSFI for enhancing innovative outcomes and driving business success in emerging markets such as Vietnam.