The role of knowledge sharing and innovation on the performance of banking: A governance perspective

Previous studies have demonstrated that knowledge management plays a crucial role in fostering innovation and enhancing organizational performance in highly competitive environments (Mardani et al., 2018; Darroch, 2005). This research delves into several aspects of this issue from a managerial perspective, with a particular focus on the banking industry. Based on the resource-based view (RBV) theory, we develop a research framework to identify the role of knowledge sharing and innovation in the performance of Vietnamese banks. The study conducted a survey and got data from 279 employees of Vietnamese banks from June 2022 to October 2022. We employed structural equation modeling (SEM) using PLS SMART software to evaluate the hypothesized relationships in the conceptual framework. Research results show that knowledge sharing and innovation play an important role in the performance of Vietnamese banks. The findings highlight the critical role of innovation in enhancing firm performance, emphasizing the importance of investment in innovation and robust innovation management. While these factors proved significant, the study revealed that knowledge sharing, contrary to expectations, did not directly impact bank innovation. The research suggests that Vietnamese commercial banks can enhance their overall performance by promoting both knowledge sharing and innovation. The findings in this paper may be helpful to academics and managers in designing management knowledge programs that achieve these goals.