Abstract:Purpose: Innovation is considered as a core element of sustainable competitive advantage in the rapidly changing environment. However, in Vietnam, researches on innovation are very rare, which are mostly general reports without underlying analyses of innovation in firms, especially determinants for innovation. Therefore, this paper focuses on analyzing critical successful factors for innovation in Vietnamese firms. Originality/value: This study makes a contribution for both academics and practitioners. For academics, this study provided one more empirical evidence of the determinants for innovation.Regarding practical implications, this study suggests that Vietnamese companies have to strengthen capabilities for employees through training, encourage generation of new ideas, rule breaking, and innovative behaviors by organizational members. Together, having high awareness of innovation, building rational innovation strategy and policy is essential factors that firms should possess and develop to enhance innovation performance. Although there is no confirmation for impact of finance on innovation level, firms should understand that increasing innovation investment can bring favorable condition to create innovation especially in SMEs.

Knowledge management plays a very important role in business operation, especially in the efficient exploitation of information or knowledge resources through technology. Technology provides the basic tools for implementing and improving the efficiency of knowledge management activities within an enterprise. To understand the relative influence of various factors in improving knowledge management systems, this study used data from 92 Vietnamese enterprises having knowledge management systems. The study identified a number of important factors directly affecting the success of knowledge management system in Vietnam enterprises. Based on the results of this study, the authors gave several recommendations for Vietnam enterprises in the development and application of knowledge management systems, and suggested future studies.