Firm Performance: An Empirical Study of Vietnam’s Information Technology Companies

Abstract:The purpose of this paper is to contribute to the limited previous research on intra-organizational knowledge transfer, by examining the impact of particular organizational factors (IT systems, organizational culture, organizational structure and incentive systems) on the process of knowledge transfer within IT companies in Vietnam and the relationship between the knowledge transfer process and its organizational performance. A survey of 36 companies out of 200 software companies in Hanoi and Ho Chi Minh city, targeted at 900 technical staff, middle managers and top managers, was conducted. The study findings, based on a sample response rate of 24 per cent, indicated that a culture of high solidarity, adaptability and collaboration was proved to have the strongest impact on the process of knowledge transfer and company performance. It was also found that a transparent and flexible incentive system motivated individuals to exchange and utilize knowledge in their daily work, that a high level of centralization and formalization hindered the flow of knowledge, and the effect of IT tools on the knowledge transfer process remained weak. Overall, the findings of the study indicated that organizational factors and intra-organizational knowledge transfer processes have positive correlations with organizational performance.