The Effect of Knowledge Sharing and Innovativeness on Organizational Performance: An Empirical Study in Vietnam

The emerging competitive environment in today’s global marketplace is one where businesses no longer compete with each other as autonomous, individual firms. Global, economic, and technological development pressure forces organizations to continually enhance their performance through knowledge sharing and innovativeness. The purpose of this paper is to explore the moderating role of knowledge sharing and the mediating role of innovativeness in the relationship between transformational leadership and organizational performance. The data was collected from 389 employees in Vietnamese industrial enterprises through a questionnaire survey. The information was then analyzed by explanatory factor analysis (EFA) confirmatory factor analysis (CFA) as well as structural equation modeling (SEM). The results show that the mediating role of innovativeness and the moderating role of knowledge sharing in the relationship between transformational leadership and performance, are supported. Organizations may reap the benefits of an innovative workforce by selecting, nurturing transformational leaders. This study contributes to the field of human resources management, particularly leadership, by exploring the role of transformational leadership. Moreover, this is the first study to test the moderating role of knowledge sharing and the mediating role of innovativeness in the relationship between transformational leadership and the organizational performance.