THE RELATIONSHIP BETWEEN KNOWLEDGE MANAGEMENT, INNOVATION, DECISION-MAKING STYLES, AND ORGANIZATIONAL PERFORMANCE OF SMALL AND MEDIUM-SIZED ENTERPRISES IN VIETNAM

Abstract

This study investigates the influence of three key organizational factors—Knowledge Management (KM), Innovation (INN), and Decision-Making Style (DMS)—on organizational performance (OP) of small and medium-sized enterprises (SMEs) in Vietnam. Drawing on contemporary theoretical foundations including the SECI knowledge-creation model, organizational innovation theory, and decision-making style theory, the research develops an integrated analytical framework. A mixed-methods approach was adopted, combining qualitative interviews with quantitative survey data. A total of 93 valid responses were collected and analyzed using SPSS 22 through reliability testing, exploratory factor analysis (EFA), Pearson correlation, and multiple regression. The results reveal that all three factors exert significant and positive impacts on organizational performance. Among them, decision-making style shows the strongest effect, followed by knowledge management and innovation. The regression model demonstrates good explanatory power, accounting for 59.8% of the variance in organizational performance (Adjusted R² = 0.584; Sig. = 0.000). Demographic analysis further indicates that differences across industry sectors influence the extent to which SMEs adopt cloud-based accounting systems, manage knowledge, and implement innovation practices. Overall, the findings highlight the critical role of effective knowledge utilization, continuous innovation, and rational, data-driven decision-making in enhancing the performance of SMEs. The study provides empirical evidence and practical recommendations to support Vietnamese SMEs in strengthening competitiveness in the era of digital transformation.