Luận văn thạc sĩ Quản trị kinh doanh: Innovation management in research and development of technology products at VNPT technology

However, the innovation performance of these engineers depends not only on individual skills but is also influenced by various factors, including absorptive capacity the ability to acqui

Research rationale

In the rapidly evolving landscape of information and communication technology (ICT), innovation is essential for technology companies to remain competitive and achieve sustainable growth Research and development (R&D) innovation is crucial, allowing companies to swiftly adapt to market demands and harness emerging technologies like the Internet of Things (IoT), Artificial Intelligence (AI), and 5G networks As a leading technology firm in Vietnam, VNPT Technology understands that enhancing innovation in R&D directly contributes to improved product and service quality, thereby delivering lasting value to customers and society.

R&D engineers at VNPT Technology play a crucial role in driving innovation by developing technical solutions and swiftly adapting to changes in customer demand and global technology advancements Their innovation performance is shaped not only by individual skills but also by factors such as absorptive capacity, which refers to the ability to acquire and assimilate external knowledge, as well as the work environment, organizational support, and internal knowledge development capabilities.

Research on the factors influencing innovation capacity in Vietnam, particularly within leading technology firms like VNPT Technology, is currently limited Analyzing the elements that affect the innovation capacity of R&D engineers at VNPT Technology can offer valuable insights for improving innovation performance and provide recommendations for optimizing the R&D process in the ICT sector.

This research is essential for VNPT Technology to better understand the factors affecting its engineering team's innovation capacity The findings will enable the company to formulate effective strategies that foster knowledge expansion among engineers, boost their innovative capabilities, and enhance R&D effectiveness By investing in this research, VNPT Technology will not only benefit itself but also contribute to the growth of the ICT industry in Vietnam.

Purpose of the research

Innovation is essential for success in research and development (R&D), especially in technology companies like VNPT Technology This study examines how effective innovation management practices can improve R&D efficiency and effectiveness by fostering a culture of creativity and continuous improvement It identifies key factors influencing innovation capacity at VNPT Technology, highlighting the importance of structured management for sustainable innovation As a fundamental element of success, innovation capacity enhances product development, boosts organizational competitiveness, and aligns with strategic goals in the fast-changing ICT sector.

The research aims to achieve the following specific objectives:

This research aims to identify the key factors that influence innovation among R&D engineers by analyzing both internal and external elements, including absorptive capacity, organizational support, and knowledge-sharing practices Understanding these critical components will help determine which aspects are most significant in promoting innovation within organizations.

 Examine Innovation Management Practices: Investigate the current practices of innovation management in the R&D department of VNPT

Technology to understand their effectiveness in supporting product development and technological advancements

This study evaluates the effectiveness of current practices at VNPT Technology, focusing on their impact on the innovation performance of engineers It aims to provide valuable insights into the strengths and weaknesses of existing research and development processes.

To enhance its innovation capacity, VNPT Technology should implement strategic recommendations derived from the research findings, focusing on optimizing the R&D environment and fostering continuous learning and development for its engineers.

Leverage research insights to shape comprehensive R&D strategies at VNPT Technology, integrating innovation management principles into product development processes to ensure sustainable growth and enhance competitiveness.

This research aligns innovation management practices with strategic goals, offering a framework for ICT companies in Vietnam to boost their R&D innovation capacity It emphasizes the importance of systematic innovation management to achieve significant results in technology product development.

Objects and scope of study

Objects of the study

This study aims to identify the key factors that influence the innovation capacity of R&D engineers at VNPT Technology, exploring both internal and external determinants that impact their performance The research will specifically focus on analyzing these factors to gain insights into enhancing innovation within the organization.

This study examines four key elements—absorptive capacity, organizational support, knowledge-sharing practices, and other relevant factors—that influence the innovation capabilities of R&D engineers By analyzing these factors, the research seeks to provide valuable insights for VNPT Technology to improve and enhance the innovation potential of its engineering team.

Scope of the study

This research focuses exclusively on VNPT Technology, a prominent ICT company in Vietnam, concentrating on the data collection and analysis within its R&D department situated in Vietnam, without including other subsidiaries or international offices.

This study focuses on identifying and assessing the factors that influence innovation capacity within research and development (R&D) It will exclude topics unrelated to innovation in R&D, such as financial performance, human resources policies outside the R&D context, and operational processes not directly tied to product development and innovation.

This research will span six months, focusing on surveys and data collection from R&D engineers and relevant personnel at VNPT Technology This timeframe is adequate for conducting periodic surveys and analyzing the short-term effects of factors like absorptive capacity, organizational support, and internal knowledge-sharing culture on the R&D team's innovation capacity The results from this six-month study will offer an initial overview of the factors influencing innovation and could lay the groundwork for future long-term research if needed.

This study precisely delineates its objects and scope to conduct a focused analysis of the factors influencing innovation capacity in R&D at VNPT Technology, enabling the research to yield insightful results.

5 actionable insights specifically relevant to the organization’s strategic goals in fostering an innovative and dynamic R&D environment.

Research methodology

The research methodology for this study systematically investigates the factors affecting the innovation capacity of R&D engineers at VNPT Technology It employs a blend of quantitative and qualitative methods to facilitate thorough data collection and analysis, ensuring a comprehensive understanding of the subject.

This study utilizes a quantitative research design with a cross-sectional approach to collect data from R&D engineers over a defined six-month period By employing a survey-based method, the research aims to gather insights on R&D engineers' perceptions and experiences related to absorptive capacity, organizational support, and internal knowledge-sharing practices, all of which may impact their innovation capacity.

The primary data collection method will be a structured survey questionnaire aimed at evaluating the factors influencing innovation capacity This questionnaire will employ a Likert scale ranging from 1 to 5 to gauge respondents' levels of agreement or disagreement with statements concerning absorptive capacity, internal knowledge-sharing, and organizational support.

The study will utilize purposive sampling to identify participants engaged in R&D activities at VNPT Technology, aiming for a representative sample that encompasses engineers and other key personnel from the R&D department.

Data Collection Process: The questionnaire will be distributed online to facilitate data collection and ensure a high response rate Participants will be

6 given a clear explanation of the purpose of the study, and responses will be anonymized to encourage honest feedback

The study utilizes purposive sampling to guarantee that the research findings accurately reflect the context of VNPT Technology The population under investigation includes around 300 R&D engineers, encompassing a diverse range of roles and experience levels within the organization.

Determining the required sample size is essential for achieving statistical adequacy in research analyses Guidelines suggest a minimum of 10 observations per variable for survey-based studies; thus, the selected sample size in this research meets this criterion, ensuring sufficient statistical power to identify significant relationships and enhance the generalizability of the results The purposive sampling method was employed to target individuals directly engaged in R&D activities, aligning with the study's objectives.

The survey will be structured to measure both independent and dependent variables in the study:

Independent Variables: These include factors such as absorptive capacity (e.g., knowledge identification, knowledge assimilation, knowledge exploitation), organizational support, and internal knowledge-sharing culture

The main dependent variable in this study is Innovation Performance, which gauges the innovative capabilities of R&D engineers This will be assessed by evaluating factors such as the quantity of new ideas and products generated.

7 and improvements implemented by the engineers, as well as feedback on their problem-solving abilities

Each variable will be operationalized through a series of survey items based on established literature, ensuring that the measurements are valid and reliable

Data analysis will utilize SPSS and AMOS to execute statistical tests and structural equation modeling (SEM), facilitating the exploration of relationships between independent and dependent variables The analysis will encompass a comprehensive process to ensure accurate results.

Descriptive Statistics: To summarize the data and provide an overview of participants’ responses regarding each factor

Reliability and Validity Testing: Using Cronbach’s alpha and factor analysis to assess the reliability and validity of the survey items

Correlation Analysis: To identify the strength and direction of relationships between independent variables and the dependent variable

Structural Equation Modeling (SEM) will be utilized to examine the proposed relationships among factors such as absorptive capacity and organizational support, and their impact on the innovation capacity of R&D engineers This methodology facilitates an in-depth analysis of both direct and indirect effects within the model.

Participants will be fully informed about the research's purpose, the confidentiality of their responses, and their right to withdraw at any time The study will prioritize privacy by anonymizing all data and securely storing it to protect participants' confidentiality.

Thesis structure

The thesis comprises five key chapters: Chapter 1 introduces the research context, rationale, objectives, methodology, and outline; Chapter 2 reviews literature on innovation in R&D, defining key concepts and presenting the research model and hypotheses; Chapter 3 elaborates on the research design, sample, data collection, and ethical considerations; Chapter 4 presents the research findings through survey results, descriptive statistics, and structural equation modeling (SEM) analysis, including hypothesis testing; and Chapter 5 discusses the implications of the findings, offering practical recommendations for enhancing innovation at VNPT Technology, supplemented by appendices with additional data.

LITERATURE REVIEW

Defining Innovation Capacity

Innovation capacity in research and development (R&D) refers to an organization's ability to effectively generate, develop, and implement new ideas, products, or processes It is characterized by a blend of technical skills, creativity, adaptability, and the capability to utilize both internal and external knowledge to meet market demands.

In the realm of research and development, the ability to innovate is crucial for engineers tasked with converting ideas into effective solutions amidst swift technological changes In the competitive landscape of the ICT industry, a company's R&D innovation capacity plays a key role in its overall capability to sustain and enhance its market presence.

Absorptive Capacity: A Foundation for Innovation

Absorptive capacity is defined as an organization's ability to identify, assimilate, and utilize new external knowledge to drive commercial success and foster innovation This concept, introduced by Cohen and Levinthal in 1990, is crucial for industries that are evolving quickly.

11 technological change, such as information and communication technology (ICT), where the ability to adapt and innovate is paramount

Figure 1.1 Cohen and Levinthal (1990)'s conceptualization of Absorptive capacity

Core Dimensions of Absorptive Capacity, Absorptive capacity is commonly divided into three interrelated stages:

Knowledge identification is a vital process that entails recognizing valuable sources of information that align with an organization's goals According to Lane et al (2006), this capability is crucial for organizations in environments rich in diverse external knowledge Successful knowledge identification necessitates effective environmental scanning systems and strong networks with external partners, including research institutions and industry consortia Key activities in this stage include monitoring technological trends, analyzing competitor activities, and fostering collaborations to discover innovative knowledge.

Knowledge assimilation is the process of interpreting, internalizing, and integrating external knowledge into an organization's existing knowledge base According to Zahra and George (2002), this requires mechanisms to codify tacit knowledge and ensure alignment with organizational goals and practices In research and development (R&D) settings, effective assimilation often includes cross-functional discussions, workshops, and training sessions to enhance collaboration and innovation.

Twelve sessions are designed to contextualize external knowledge and convert it into actionable insights By integrating new research findings into product design workflows, organizations can ensure that knowledge is not only acquired but also effectively internalized.

Knowledge exploitation represents the final stage of applying acquired knowledge to develop new products, processes, or services According to Todorova and Durisin (2007), an organization's ability to effectively exploit knowledge directly influences the tangible benefits gained from its absorptive capacity This stage encompasses activities like prototyping, technology development, and system refinement Organizations that excel in knowledge exploitation not only innovate more rapidly but also enhance their market efficiency, utilizing R&D outcomes to secure a competitive edge.

Absorptive capacity has become a focal point for Vietnamese scholars, especially in sectors like ICT, manufacturing, and services, where innovation is vital for competitiveness Research by Nguyen and Pham (2019) demonstrated that Vietnamese SMEs with enhanced knowledge assimilation and exploitation capabilities are more successful in launching new products, even amid resource limitations Additionally, Le et al (2021) highlighted the role of external collaboration in strengthening absorptive capacity, revealing that partnerships with universities and research institutions significantly improve firms' abilities to acquire and leverage external knowledge, particularly in high-tech fields Furthermore, the dynamic economic landscape of Vietnam, characterized by fluctuating policies and limited R&D infrastructure, presents additional challenges, making absorptive capacity not just a strategic asset but an essential tool for survival.

Organizational Support for Innovation

Organizational support plays a vital role in enhancing innovation capacity, as highlighted by Amabile (1997) Key elements such as the availability of resources, managerial backing, and a culture that fosters innovation are essential in empowering employees to participate in creative and innovative endeavors.

Figure 1.2 Componential Theory of Organizational Creativity and Innovation Amabile

Resource availability refers to the provision of sufficient financial, technological, and human resources necessary for innovation (Scott & Bruce,

Access to advanced tools, sufficient funding, and skilled personnel are essential for effective R&D activities, including experimentation, prototyping, and idea testing Research shows that organizations providing strong resource support foster higher employee engagement in creative tasks Martins and Terblanche (2003) found that when employees perceive an abundance of resources, they are more inclined to take risks and drive innovation Furthermore, ample resources alleviate operational constraints, enabling teams to focus on developing innovative solutions without unnecessary limitations Studies by Eisenhardt and Martin (2000) also emphasize the importance of adequate resources in promoting innovation.

14 allocation is essential for leveraging dynamic capabilities and achieving competitive advantage through innovation

Managerial support is essential for fostering an innovative environment, as it encompasses leadership behaviors that encourage risk-taking, offer constructive feedback, and ensure a safe space for experimentation Research by Oldham and Cummings indicates that employees are more inclined to engage in creative problem-solving when managers value their contributions and shield them from organizational obstacles Furthermore, Mumford et al highlight that transformational leadership, characterized by inspiring and motivating teams, significantly boosts creative output by providing vision, eliminating bureaucratic barriers, and facilitating resource allocation, thus creating a supportive ecosystem for innovation.

An innovative culture fosters experimentation, values creativity, and embraces failure as a learning opportunity, which is essential in R&D environments where trial-and-error is crucial for innovation Research by Lawson and Samson (2001) indicates that organizations with a robust innovative culture generate more novel ideas and achieve greater success in commercialization Key characteristics of such a culture include open communication, recognition of creative contributions, and systems that reward innovation Additionally, Martins and Terblanche (2003) emphasize that aligning organizational culture with innovation goals enables better adaptation to external changes and sustains long-term innovation.

Organizational support, through its components of resource availability, managerial encouragement, and an innovation-friendly culture, forms a cornerstone of innovation capacity These factors collectively enable

To unlock their creative potential and drive significant innovations, organizations must recognize the interplay of various elements that influence employee creativity By designing effective systems and policies, companies can enhance innovation across teams, highlighting the importance of organizational support in research and development environments and its effect on overall innovation performance.

Vietnamese studies highlight the critical role of organizational support in driving innovation, especially within state-owned enterprises and those shifting to market-oriented practices Research by Tran and Bui (2018) in the telecommunication sector revealed that leadership styles promoting open communication and risk-taking significantly enhance employee creativity Similarly, Nguyen et al (2020) found that strategic investments in R&D and training within Vietnamese ICT firms led to notable improvements in innovation performance These insights align with global findings that emphasize the importance of resource availability and managerial backing as key innovation drivers Additionally, Vietnamese researchers point out unique cultural factors, such as collective decision-making and hierarchical structures, which can either facilitate or impede innovation based on their management.

Knowledge-Sharing Practices: Enhancing Collaboration

Knowledge-sharing practices play a crucial role in collaborative R&D environments by promoting the exchange of ideas, expertise, and insights among employees According to Nonaka and Takeuchi (1995), effective knowledge-sharing is vital for sustaining innovation within organizations, especially when innovation depends on teamwork and collaboration.

Figure 1.3 SECI model of knowledge creation (Nonaka and Takeuchi, 1995)

Collaborative Platforms are essential technologies that facilitate effective information sharing and collaboration among employees across various departments These tools, such as intranets, project management systems, and knowledge databases, play a crucial role in research and development (R&D) by promoting faster problem-solving and driving innovation.

Mentorship and training programs offer ongoing learning opportunities for junior engineers, enabling them to acquire valuable insights from seasoned professionals These initiatives promote skill enhancement and cultivate a culture of knowledge-sharing, which can significantly boost innovation.

Cross-Functional Collaboration engages employees from diverse departments, bringing multiple perspectives into the innovation process and often leading to more creative solutions (Lawson & Samson, 2001) Studies show that organizations that prioritize strong knowledge-sharing practices tend to enhance their overall innovation capabilities.

17 mechanisms have a higher capacity for innovation, as shared knowledge fosters new ideas and reinforces collaborative problem-solving (Hansen, 2002)

Knowledge-sharing practices in Vietnam are significantly influenced by the country's collectivist culture, as highlighted by Pham and Hoang (2017), who found that informal networks within organizations enhance knowledge dissemination and innovation Unlike the formalized systems commonly seen in Western contexts, Vietnamese firms depend on interpersonal trust and social relationships to promote knowledge sharing Vu et al (2022) emphasized the importance of mentorship programs in ICT firms, revealing that the transfer of knowledge from senior to junior employees not only aids in skill development but also fosters innovative ideas, especially in project-based settings However, while the close-knit teams in Vietnam encourage collaboration, the hesitance to share failures can hinder learning and innovation.

Previous Research and Model Justification

Research highlights the crucial role of absorptive capacity, organizational support, and knowledge-sharing practices in enhancing innovation capacity within R&D These factors are essential for fostering creativity, generating ideas, and successfully implementing new concepts in research environments This section examines significant studies that underpin each factor and advocates for an integrated model that merges the Absorptive Capacity Model with aspects of the Organizational Support and Knowledge-Sharing Models.

The concept of absorptive capacity, as introduced by Cohen and Levinthal (1990), has been foundational in innovation studies Cohen and

Levinthal emphasizes that an organization's capacity to identify, assimilate, and utilize external knowledge is essential for maintaining innovation This perspective highlights that innovation relies not only on internal research and development but also on the effective integration of external insights The concept of absorptive capacity is particularly significant, encompassing three key components: Knowledge Identification, Knowledge Assimilation, and Knowledge Application.

Assimilation, and Knowledge Exploitation—are often cited as critical stages through which firms transform external insights into innovative outputs (Cohen

Empirical studies underscore the significant role of absorptive capacity in driving innovation outcomes Research by Lane, Koka, and Pathak (2006) reveals that firms with strong absorptive capacity are more adept at responding to technological advancements and market shifts, leading to higher innovation success rates Additionally, Flatten et al (2011) found that companies proficient in knowledge identification and assimilation are more agile in adapting to environmental changes, thereby enhancing their innovation performance These findings position absorptive capacity as a crucial factor for innovation, especially in rapidly evolving sectors like ICT.

Absorptive capacity is crucial for VNPT Technology's R&D function, especially in a fast-evolving technological landscape The ability to absorb and leverage external knowledge is vital for sustaining competitiveness This study will emphasize absorptive capacity as a key element of the research model, examining how R&D engineers at VNPT Technology identify, assimilate, and utilize new knowledge to foster innovation.

Organizational support has been extensively studied in relation to its impact on employee creativity and innovation Amabile (1997) developed the

The Organizational Support for Innovation Model highlights the critical role of resource availability, managerial encouragement, and a supportive culture in promoting workplace innovation According to Amabile’s model, such organizational support enhances employees' intrinsic motivation, empowering them to participate in creative problem-solving and risk-taking, which are fundamental components of innovation.

Numerous empirical studies confirm the positive relationship between organizational support and innovation outcomes Research by Scott and Bruce (1994) indicates that the availability of resources significantly enhances innovation, equipping employees with the necessary tools to explore and implement new ideas.

Research by 1996 highlighted that managerial support, especially through encouragement and constructive feedback, greatly enhances employee creativity Furthermore, Martins and Terblanche (2003) emphasized that an innovative culture is crucial for fostering innovation, as organizations that promote experimentation are more likely to achieve successful innovation outcomes.

Organizational support is crucial for VNPT Technology to fully leverage the innovation potential of its R&D engineers In the competitive ICT industry, access to resources, management backing, and a culture that fosters creativity and risk-taking significantly boost the R&D team's innovation capabilities This study incorporates organizational support as a key variable in the research model to assess the influence of these internal factors on innovation capacity.

Knowledge-sharing practices are essential for promoting collaborative innovation, especially in R&D settings where intricate challenges demand varied expertise The Knowledge-Sharing Model by Nonaka and Takeuchi (1995) emphasizes the significance of both formal and informal processes for knowledge exchange within organizations.

Their model suggests that effective knowledge-sharing mechanisms enable employees to access and build upon each other’s knowledge, which is essential for continuous innovation

Research indicates that knowledge-sharing significantly boosts innovation Hansen (2002) discovered that organizations with robust knowledge-sharing networks excel in new product development, as employees can swiftly access and utilize pertinent information.

Knowledge-sharing practices, including mentorship programs and collaborative platforms, foster a culture of continuous learning and collective problem-solving, essential for sustained innovation Furthermore, cross-functional collaboration enhances innovative outcomes by leveraging the unique perspectives of diverse teams, which leads to creative solutions.

At VNPT Technology, the interdisciplinary nature of R&D work highlights the importance of knowledge-sharing practices By promoting a culture of open knowledge exchange among teams, VNPT Technology can significantly boost the innovation capabilities of its R&D engineers This study incorporates knowledge-sharing practices to analyze the influence of collaborative efforts within the organization on innovation outcomes.

Based on the literature, an integrated model combining the Absorptive

The Capacity Model, incorporating elements from the Organizational Support and Knowledge-Sharing Models, offers a robust framework for evaluating the factors that impact innovation capacity in R&D at VNPT Technology Each element of the model targets a specific yet interconnected facet of innovation, ensuring a thorough assessment of the organization's innovative capabilities.

 Absorptive Capacity: This addresses how R&D engineers at VNPT Technology acquire, assimilate, and apply external knowledge to

21 drive innovation Absorptive capacity is essential for maintaining an innovative edge in the fast-evolving ICT sector

Organizational support plays a crucial role in driving innovation by leveraging internal resources, managerial backing, and a conducive culture At VNPT Technology, providing R&D engineers with essential resources and a creative environment is vital for promoting innovative solutions.

Knowledge-sharing practices at VNPT Technology enhance collaborative dynamics by fostering cross-functional collaboration and continuous learning, which in turn amplifies the innovative efforts of R&D teams The integration of external (absorptive capacity) and internal (organizational support and knowledge-sharing) influences provides a balanced approach to assessing innovation capacity This comprehensive model aligns with the study's objectives and is particularly relevant to VNPT Technology’s R&D context, where external technological advancements and internal collaboration are essential for success.

METHODOLOGY

VNPT Technology overview

VNPT Technology is a key player in the VNPT Group, spearheading the advancement of industrial technology in Vietnam With a commitment to providing high-quality technology products under a proudly Vietnamese brand, VNPT Technology aspires to be a leading high-tech enterprise in the country and aims to establish itself as a prominent technology company in the region.

Founded in 2011 through the reorganization of the ANSV joint venture between VNPT Group and Alcatel-Lucent, VNPT Technology leverages over 20 years of industry experience Its founding shareholders include VNPT, Vietnam Post Corporation (VNPost), and Pacific Electronics JSC (Pacifab) Operating under a parent-subsidiary model, the company establishes a strong value chain across technology, industrial technology, information technology, and digital content.

As of October 2024, VNPT Technology has launched over 15 million products across 11 countries, significantly impacting the market In Vietnam alone, the company’s innovative products and solutions cater to more than 8 million households and 300,000 enterprises Their offerings include next-generation telecommunications devices, smart home technologies, solutions for telecom operators, and digital transformation services for businesses.

VNPT Technology is structured into three main divisions: Research & Development, Business & Deployment, and Manufacturing At the core of its operations, research and development drive the company’s dedication to

25 innovation, underscoring VNPT Technology's role as a key contributor to VNPT Group's growth and Vietnam's technological progress

Key Activities of VNPT Technology:

VNPT Technology is dedicated to enhancing its knowledge and intellectual property through research and development, focusing on high-tech products and original design manufacturing (ODM) The company emphasizes five key technology areas: digital transformation, fixed and wireless broadband, IoT, and 5G technology, aiming to provide comprehensive hardware and core technology solutions With a goal to become a leading Original Design Manufacturer by 2025, VNPT Technology is committed to driving innovation in the tech industry.

VNPT Technology is enhancing its research and development innovations by scaling them into mass production to satisfy both domestic and international market demands The company is also expanding its electronic manufacturing services (EMS) to optimize infrastructure and resources, aiming for deeper integration into the global supply chain Currently, technological products and equipment account for 70% of the company's annual revenue, a figure anticipated to increase in the future.

VNPT Technology, with over 30 years of expertise in large-scale system integration, specializes in telecom networks and is dedicated to leading the way in telecom network and IT system integration Their extensive services encompass the entire lifecycle, including analysis, solution design, development, implementation, and training.

 Business Development: In addition to traditional product and service models, VNPT Technology is developing new business models,

26 including platform-based and ecosystem-based models, to generate new value within the sharing economy framework

 Digital Transformation: As a newly established area of focus for 2020-

In alignment with the National Strategy for 2030, VNPT Technology is committed to assisting small and medium-sized enterprises in transforming their operations By leveraging technological solutions and adopting digital business models, these businesses can innovate their products and generate new value in the evolving digital landscape.

Figure 2.1 VNPT Technology Value chain

VNPT Technology prioritizes research and development to enhance its strategic product offerings for telecommunications, enterprise, and consumer markets, driven by key strategies that support its commitment to innovation and advancement.

To create a next-generation telecommunications ecosystem, it is essential to expand the product portfolio by incorporating high-speed access technologies such as XGSPON and Wi-Fi 7 This approach aims to enhance performance and broaden coverage Additionally, adopting modular designs will enable seamless upgrades and integration with IoT technologies like Zigbee and Bluetooth, effectively transforming network access devices into smart home gateways.

VNPT Technology is advancing vertical IoT systems and developing 5G network access devices to deliver Fixed Wireless Access services in challenging terrains, effectively meeting public access requirements where fiber deployment is impractical.

To drive comprehensive digital transformation, it is essential to expand and enhance digital platforms for political, social organizations, and enterprises This strategy focuses on developing versatile digital technology solutions that empower organizations and businesses to seamlessly integrate technology into their operations and management processes.

To transform traditional telecommunications service providers (CSPs) into Digital Service Providers, the company will develop an IoT ecosystem by building advanced technology platforms and business management systems while collaborating with strategic partners VNPT Technology aims to enhance its Camera and Smart Home products, launching them through innovative business models to capitalize on the strengths of the VNPT Group This strategy will not only strengthen the company's position in the IoT sector but also expand service offerings for individual and household customers significantly.

VNPT Technology is set to enhance its research and development and manufacturing capabilities to offer ODM/OEM and EMS services to both domestic and international clients, with a focus on IoT device production This strategic initiative will strengthen the company's market presence while enabling increased production capacity and improved product quality.

Research process

This study employs a systematic research process to ensure thorough data collection and analysis, focusing on the factors that affect the innovation capacity of R&D engineers at VNPT Technology.

This process involves a series of stages, from defining the research problem to analyzing data and interpreting findings Each stage is outlined below:

The initial phase of the research process involves precisely defining the research problem and setting specific objectives This study seeks to explore the impact of absorptive capacity, organizational support, and knowledge-sharing practices on the innovation capacity of R&D engineers The research objectives are derived from a comprehensive literature review and aim to assess how each factor contributes to improving innovation outcomes.

A research model was developed by integrating Absorptive Capacity, Organizational Support, and Knowledge-Sharing Practices, following a comprehensive literature review Hypotheses were created to examine the relationships between these elements and innovation capacity This structured framework facilitates a thorough analysis and validation of each factor's influence on innovation.

This study adopts a quantitative research design to effectively measure the factors impacting innovation capacity, utilizing a survey-based approach with a structured questionnaire Data is collected from R&D engineers at VNPT Technology, allowing for valuable insights into their perceptions and experiences related to absorptive capacity, organizational support, and knowledge-sharing practices within the R&D context.

This study employs a purposive sampling method to select R&D engineers involved in innovation activities at VNPT Technology The sample size is established according to statistical requirements for effective data analysis A structured questionnaire, aimed at measuring specific variables, is distributed to participants via an online platform to enhance response rates.

29 efficient and timely data collection The survey questions are tailored to reflect the theoretical constructs identified in the research model

Data analysis involves utilizing statistical software like SPSS and AMOS to test research hypotheses and validate the research model Descriptive statistics offer insights into the demographic characteristics of respondents and summarize survey responses Additionally, inferential statistical techniques, particularly structural equation modeling (SEM), are employed to explore the relationships between independent variables—such as absorptive capacity, organizational support, and knowledge-sharing practices—and the dependent variable, innovation capacity.

The analysis of data reveals the influence of various factors on the innovation capacity of R&D engineers at VNPT Technology By comparing the findings with initial hypotheses, the validity of these assumptions is assessed in relation to existing research This process highlights key factors that significantly affect innovation capacity and provides actionable recommendations for fostering innovation within the organization.

In conclusion, this article summarizes key findings and their implications for VNPT Technology, offering actionable recommendations to enhance innovation capacity within the R&D department Additionally, it suggests avenues for future research that could yield further insights into promoting innovation in similar environments.

Research Model and Hypotheses

The research model investigates how critical organizational and knowledge-related factors affect the Innovation Capacity of R&D engineers, particularly in the context of developing advanced technology products It emphasizes the importance of Absorptive Capacity, Organizational Support, and Knowledge-Sharing Practices in fostering innovation.

30 hypothesized as critical drivers of innovation outcomes, particularly in the ICT sector

Absorptive Capacity and Its Role in Innovation

Absorptive Capacity is crucial for R&D engineers as it enables them to identify, assimilate, and leverage external knowledge for innovation This capability is vital in fast-evolving sectors like ICT, where rapid technological advancements necessitate ongoing adaptation and learning to foster innovative solutions.

 H1: Organizational Support positively influences Absorptive Capacity

 H2: Knowledge-Sharing Practices positively influence Absorptive Capacity

Organizational Support as a Catalyst for Innovation

Organizational support encompasses the necessary infrastructure, managerial encouragement, and a culture of innovation that empowers engineers to experiment and take risks This supportive environment is crucial for R&D engineers, as it enables them to unlock their innovative potential and develop groundbreaking solutions.

 H3: Organizational Support positively influences Innovation Capacity

Knowledge-Sharing Practices and Innovation

Knowledge-sharing practices promote the active exchange of insights and expertise among teams, facilitating collaborative problem-solving and creativity By fostering an environment of collective innovation, these practices lead to the development of effective solutions through teamwork.

 H4: Absorptive Capacity positively influences Innovation Capacity

 H5: Knowledge-Sharing Practices positively influence Innovation Capacity

Figure 2.2 Hypotheses are based on the integrated model

(Source: Created by the author)

The proposed research model examines how organizational and collaborative factors influence the Innovation Capacity of R&D teams, focusing on the interplay between Organizational Support, Knowledge-Sharing Practices, and Absorptive Capacity This integration highlights the importance of these elements in improving innovation outcomes within the ICT industry.

This framework reflects a comprehensive approach to understanding innovation, focusing on critical pathways through which organizations can support R&D engineers in achieving technological advancements The hypotheses structure is as follows:

H1: Organizational Support positively influences Absorptive Capacity

H2: Knowledge-Sharing Practices positively influence Absorptive Capacity

H3: Organizational Support positively influences Innovation Capacity H4: Absorptive Capacity positively influences Innovation Capacity H5: Knowledge-Sharing Practices positively influence Innovation Capacity

This refined model aligns with VNPT Technology’s strategic focus on ICT product development and provides actionable insights into enhancing innovation capacity within its R&D environment.

Research design

This study utilizes a quantitative research design, employing a survey-based methodology to gather data on the factors that influence the innovation capacity of R&D engineers at VNPT Technology A quantitative approach is ideal for analyzing relationships between variables, facilitating statistical analysis and hypothesis testing This design allows for the collection of structured data, which is crucial for validating the research model and hypotheses.

This study employs a cross-sectional design to collect data at a single point in time, effectively capturing the current state of absorptive capacity, organizational support, and knowledge-sharing practices within VNPT Technology's R&D environment By utilizing a structured survey method, the research facilitates efficient data collection from a larger sample, thereby enhancing the reliability of the findings.

Sample and data collection

The study targets R&D engineers at VNPT Technology engaged in innovation activities, utilizing a purposive sampling technique to select participants who are actively involved in these efforts.

The study focuses on 33 individuals with relevant experience and expertise in the R&D sector, ensuring that the data gathered accurately captures the key factors that impact the organization's innovation capacity.

The sample size for structural equation modeling (SEM) is crucial for effective data analysis, typically requiring a minimum of 5-10 times the number of estimated parameters or observed variables For this study's complexity, a sample size of 250-300 participants is essential to achieve adequate statistical power and reliability, as emphasized by Kline (2015) in "Principles and Practice of Structural Equation Modeling." Utilizing a purposive sampling method ensures that participants are closely aligned with the research objectives, enhancing the study's relevance and validity.

Data collection utilizes a structured online questionnaire sent to participants via email, facilitating efficient data gathering while ensuring convenience and reducing logistical challenges The survey is crafted to capture insights into participants' perceptions and experiences related to absorptive capacity, organizational support, and knowledge-sharing practices within VNPT Technology’s R&D environment.

The development of the questionnaire is based on established scales from prior scientific research to ensure reliability and validity Each construct is measured using validated scales as follows:

Absorptive Capacity: This construct is measured using a scale derived from Cohen and Levinthal’s framework, which includes dimensions such as

34 knowledge acquisition, assimilation, and exploitation Items are adapted to reflect the R&D context at VNPT Technology

Organizational Support: The measurement scale is adapted from

Eisenberger et al.’s Perceived Organizational Support (POS) framework, focusing on the extent to which employees perceive that their organization values their contributions and cares about their well-being

Knowledge-sharing practices, grounded in Nonaka and Takeuchi's knowledge management theories, assess how often and effectively team members in R&D environments exchange both explicit and tacit knowledge.

The questionnaire employs a five-point Likert scale, from "1 = Strongly Disagree" to "5 = Strongly Agree," to assess the level of agreement or frequency of certain behaviors To ensure the items' clarity, relevance, and reliability, a pre-test was conducted with a small group of R&D engineers.

To achieve a high response rate, the study clearly outlines its purpose, highlighting the significance of participants' input for enhancing organizational practices Furthermore, the survey maintains anonymity to guarantee confidentiality and foster genuine feedback.

Measurement

This study measures constructs such as absorptive capacity, organizational support, knowledge-sharing practices, and innovation capacity using validated scales from prior research Each construct is assessed through specific observed variables rated on a 5-point Likert scale from 1 (strongly disagree) to 5 (strongly agree), allowing for quantification of responses and insights into how these factors influence innovation capacity.

Absorptive capacity encompasses five key observed variables that reflect R&D engineers' proficiency in effectively absorbing knowledge Adapted from Cohen and Levinthal’s (1990) framework, these variables evaluate the engineers' capabilities in identifying, assimilating, and applying external knowledge throughout R&D processes They highlight the engineers' ability to update their knowledge, integrate new insights with existing methodologies, and leverage this information to foster innovative solutions.

Organizational Support: Organizational support is assessed through

This article examines three key observed variables—Resource Availability, Managerial Support, and Innovative Culture—based on Amabile’s (1997) Organizational Support for Innovation model These factors reflect participants' perceptions of the organization's resources, management encouragement, and cultural backing for innovation Collectively, they illustrate the extent to which the organizational environment fosters and motivates R&D engineers to participate in creative endeavors.

Knowledge-sharing practices at VNPT Technology are assessed through three key variables that gauge the effectiveness of collaboration and knowledge exchange in R&D Based on Nonaka and Takeuchi’s (1995) Knowledge-Sharing Model, these variables include the availability of Collaborative Platforms, Mentorship and Training, and Cross-Functional Collaboration Together, they evaluate how well knowledge-sharing is promoted across teams and departments, enhancing engineers' access to a variety of insights and expertise.

Innovation Capacity: As the dependent variable, innovation capacity is measured through 5 observed variables that evaluate R&D engineers' abilities to generate, develop, and implement new ideas, products, and processes

This assessment evaluates innovation performance by focusing on creativity, problem-solving, and the development of practical solutions By taking a holistic approach, it effectively captures the engineers' potential to significantly enhance organizational innovation.

This measurement approach employs validated scales and well-defined observed variables to thoroughly evaluate each construct, aligning with established research This ensures a comprehensive analysis of the factors influencing innovation capacity within VNPT Technology's R&D department.

Data analysis

Data analysis is conducted using statistical software, specifically SPSS for preliminary analysis and AMOS for structural equation modeling (SEM) The following steps outline the data analysis process:

Descriptive statistics offer a comprehensive overview of the demographic traits of respondents, summarizing collected data for each variable through means, standard deviations, and frequency distributions This analysis provides a clear representation of the sample and their responses.

Reliability testing employs Cronbach's alpha to evaluate the internal consistency of constructs, with a value of 0.7 or higher deemed acceptable This threshold signifies that the items within each construct reliably measure the same underlying concept.

Confirmatory factor analysis (CFA) is utilized for validity testing to evaluate both convergent and discriminant validity of constructs Convergent validity is affirmed when the average variance extracted (AVE) for each construct meets or exceeds 0.5 In contrast, discriminant validity is demonstrated when the square root of the AVE for each construct surpasses the correlations among constructs.

Structural equation modeling (SEM) is a powerful tool for examining the hypothesized relationships among absorptive capacity, organizational support, knowledge-sharing practices, and innovation capacity By enabling the simultaneous analysis of multiple relationships, SEM offers valuable insights into both the direct and indirect effects of these factors on enhancing innovation capacity.

Model fit is assessed through various fit indices, including the Chi-square/df ratio, Comparative Fit Index (CFI), Tucker-Lewis Index (TLI), and Root Mean Square Error of Approximation (RMSEA) For a model to be considered acceptable, it should achieve a CFI and TLI of at least 0.90 and an RMSEA of 0.08 or lower.

Hypothesis testing is performed within the Structural Equation Modeling (SEM) framework, where path coefficients are analyzed to assess the significance and strength of relationships P-values are utilized to evaluate statistical significance This study investigates the influence of absorptive capacity, organizational support, and knowledge-sharing practices on the innovation capacity of R&D engineers.

The analysis of the data reveals key insights into the factors that significantly influence innovation capacity at VNPT Technology By comparing the results with initial hypotheses and existing literature, we gain a thorough understanding of how each factor contributes to innovation outcomes within the R&D framework.

The result of the analysis will be explained in detail through figures, tables, and narratives in Chapter 4

Chapter 3 describes the research methodology used to examine the factors influencing innovation capacity among R&D engineers at VNPT Technology The chapter begins with an outline of the research process, which employs a quantitative approach to analyze the relationships between constructs The research design includes a survey of 460 R&D engineers, a sample size deemed sufficient to ensure robust findings with a confidence level of 95% and a 5% margin of error

The study’s constructs—absorptive capacity, organizational support, knowledge-sharing practices, and innovation capacity—are measured using validated scales from previous research, each rated on a 5-point Likert scale (1

= strongly disagree, 5 = strongly agree) Absorptive capacity is measured across

5 observed variables, organizational support through 3 observed variables, knowledge-sharing practices through 3 observed variables, and innovation capacity through 5 observed variables

Data analysis employs statistical methods like Cronbach’s alpha for reliability testing and Structural Equation Modeling (SEM) to evaluate hypotheses and variable relationships This comprehensive methodology yields dependable insights into the primary factors influencing innovation capacity within VNPT Technology’s R&D department.

RESEARCH FINDINGS

Summary of the survey result

The survey aimed to analyze the factors influencing innovation capacity among R&D engineers at VNPT Technology Specifically, it focused on four main constructs:

 Absorptive Capacity (AC), with five observed variables (AC1 - AC5)

 Organizational Support (OS), with three observed variables (OS1 - OS3)

 Knowledge-Sharing Practices (KC), with three observed variables (KC1 - KC3)

The study on Innovation Capacity (IC) at VNPT Technology, based on 217 valid responses from a survey of 300 R&D engineers, explores the influence of Organizational Support (OS), Knowledge Sharing Practices (KS), and Absorptive Capacity (AC) on IC In the context of rapid technological advancements and competitive pressures in the ICT industry, understanding these factors is essential for enhancing innovation within VNPT Technology, a significant player in Vietnam's ICT sector Data analysis was performed using SPSS and AMOS to derive insights.

40 and inferential statistics, as well as Structural Equation Modeling (SEM), to test the research hypotheses.

Descriptive statistics

Gender: Out of the 217 survey respondents, 130 (59.9%) were male and

In a recent analysis of employee demographics at VNPT Technology, it was found that 87 respondents, accounting for 40.1%, were female, indicating a moderate gender imbalance with a predominance of male employees This trend reflects the broader patterns seen in the ICT sector, where technical positions are typically filled by more men Nonetheless, the significant representation of female employees in the R&D division highlights VNPT Technology's commitment to fostering a diverse workforce, which is a promising development in an industry that often struggles with gender diversity.

Research shows that gender diversity fosters innovation by bringing together varied perspectives and problem-solving methods In the ICT industry, a gender-diverse workforce enhances creativity and adaptability, crucial for navigating rapid technological changes and driving constant innovation.

VNPT Technology benefits from a higher percentage of female engineers than the industry average, promoting a collaborative and inclusive work culture This diversity enhances team dynamics and drives innovation, aligning with the company's mission to create high-quality Vietnamese technology products.

While female representation in engineering is significant, it's crucial to recognize the specific challenges faced by women in this male-dominated industry VNPT Technology must implement inclusive organizational support structures, including mentorship programs, flexible work policies, and tailored career advancement opportunities, to address the diverse needs of all employees.

VNPT Technology must actively monitor gender distribution data to identify and eliminate barriers that restrict full participation in innovation activities By ensuring equal access to resources, professional development opportunities, and decision-making roles for both male and female engineers, the company can enhance contributions from all team members.

Cumula tive Percent Val id

Source: Author’s analysis based on survey data (2024)

Years of Experience: The years of experience among R&D engineers were categorized into four groups: Less than 3 years, 3-5 years, 5-10 years, and

More than 10 years The distribution is as follows:

Source: Author’s analysis based on survey data (2024)

At VNPT Technology, over 73% of R&D engineers possess 3-5 years of experience, indicating that the majority are in the early-to-mid career stage This experience level suggests a solid foundational knowledge while still developing advanced expertise in R&D The high percentage of engineers within this range highlights the company's commitment to nurturing young talent with potential for growth in innovation roles.

The 15.9% of engineers with less than 3 years of experience represent the entry-level talent, likely bringing fresh perspectives and new ideas but possibly still acclimating to the organization’s specific R&D practices and culture

Engineers with 5-10 years of experience represent 7.6% of the sample, bringing a valuable combination of established skills and knowledge of organizational processes, which positions them as potential mentors or leaders in projects.

Finally, those with more than 10 years of experience constitute 3.3% of the sample, reflecting a smaller yet crucial segment that brings significant

Less 3 years 3-5 years 5-10 years Over 10 year

43 expertise and depth of knowledge to the R&D department This experienced group is likely instrumental in guiding junior engineers and driving more complex innovation initiatives within VNPT Technology

The distribution of years of experience within the team highlights a strong focus on early-career engineers, supporting the company's long-term innovation strategy With a majority of mid-level experience, the team is well-positioned for effective mentorship and knowledge transfer, fostering sustainable innovation in the R&D division.

Engineer Positions: The R&D engineers at VNPT Technology are distributed across four main roles: Hardware Development, Embedded Development, Software Development, and Solution & Integration The distribution is as follows:

Source: Author’s analysis based on survey data (2024)

Hardware Development accounts for the largest share of R&D engineers at 38.7%, indicating VNPT Technology's strategic emphasis on creating core devices and equipment that support its telecommunications and IoT product manufacturing goals The role of hardware development engineers is crucial in driving this focus forward.

44 creating the physical infrastructure for network access and smart home devices, which are essential to the company’s offerings

Embedded Development comprises 25.9% of the R&D workforce at VNPT Technology, highlighting the critical role of embedded systems in their products This emphasis on embedded systems enhances hardware functionality and facilitates the integration of key features such as IoT connectivity, data processing, and real-time capabilities within devices.

Software Development constitutes 21.3% of the team, highlighting its critical role in enhancing advanced functionalities, user interfaces, and digital services that support VNPT Technology’s hardware This balance illustrates the increasing demand for software solutions that complement physical devices, delivering comprehensive end-to-end functionality for users, especially in the context of digital transformation and smart solutions for both enterprises and households.

The Solution & Integration team, making up 14.1% of the R&D department, specializes in creating cohesive systems by integrating various components and ensuring compatibility within VNPT Technology's product offerings This team is dedicated to customizing solutions to meet specific client requirements, facilitating seamless operation across diverse technology elements, and overseeing complex system integrations, especially within telecommunications networks.

VNPT Technology emphasizes a balanced distribution of roles, prioritizing hardware and embedded development to support its foundational technology products The strong presence of software developers and solution integrators enhances hardware innovations with digital and operational solutions, allowing VNPT Technology to provide integrated and comprehensive market offerings.

Overall, the R&D team at VNPT Technology is predominantly male (74.57%) with a strong representation of engineers in the early-to-mid career

45 stage (73.3% having 3-5 years of experience) and a primary focus on hardware and embedded development roles (38.7% and 25.9%, respectively), reflecting the company’s emphasis on foundational technology development and product innovation.

Group differences

ANOVA tests were conducted to examine if there were significant differences in Organizational Support (OS), Knowledge Sharing Practices

(KS), and Absorptive Capacity (AC) across demographic groups

Source: Author’s analysis based on survey data (2024)

F-value = 0.613, p-value = 0.434: No significant difference was found in Organizational Support between genders, implying that both male and female employees perceive organizational support similarly In the ICT sector,

46 where innovation is crucial, providing a uniform level of support regardless of gender can encourage inclusivity, thus enhancing the overall innovation ecosystem

F-value = 5.179, p-value = 0.024: A significant difference was found, suggesting that male and female employees may engage in or perceive knowledge-sharing practices differently For VNPT Technology, understanding and addressing these differences is critical as effective knowledge-sharing is a cornerstone for innovation in ICT, where collaborative learning and cross-functional integration drive advancements

F-value = 2.309, p-value = 0.130: No significant difference in

Absorptive capacity among genders indicates that male and female engineers possess comparable skills in acquiring and assimilating knowledge This parity is advantageous for VNPT Technology, as it fosters a unified approach to embracing new technologies and innovations.

Table 3.2 Years of Experience Differences

Source: Author’s analysis based on survey data (2024)

F-value = 2.666, p-value = 0.049: Significant differences were observed across experience levels, suggesting that perceived organizational support varies with tenure This result highlights the importance of tailoring support structures to different experience levels, especially in ICT, where experienced engineers may seek different types of support than newer employees due to their familiarity with processes and resources

F-value = 0.521, p-value = 0.669: No significant difference was found, indicating that employees across experience levels engage in knowledge sharing similarly This uniformity is advantageous for VNPT Technology, as it

48 suggests that knowledge-sharing practices are ingrained in the organizational culture, transcending experience levels

F-value = 2.350, p-value = 0.073: Although not statistically significant, the p-value close to the 0.05 threshold indicates a potential trend where absorptive capacity might vary with experience This trend could imply that employees with more experience are better at recognizing and utilizing external knowledge, which is essential in ICT, where new technologies continually emerge

Source: Author’s analysis based on survey data (2024)

F-value = 1.002, p-value = 0.393: No significant difference in perceived organizational support across positions, suggesting that VNPT Technology

49 provides a consistent support level regardless of role This uniform support is essential for maintaining a collaborative and innovative culture across hardware, software, and integration teams in the ICT sector

F-value = 1.291, p-value = 0.278: No significant difference across positions, indicating that knowledge-sharing practices are equally emphasized across different functions This finding aligns well with VNPT Technology’s goal of integrating various technological solutions, where knowledge sharing between positions is vital for cohesive product development

F-value = 1.000, p-value = 0.394: No significant difference across positions, suggesting that all roles within VNPT Technology have similar levels of absorptive capacity This consistency in absorptive capacity across roles supports the organization's ability to harness external knowledge, which is key to maintaining a competitive edge in the rapidly evolving ICT industry.

Reliability and Validity Testing

Reliability evaluates the consistency of the measurement items in capturing the intended construct The commonly used metric is Cronbach's Alpha or Composite Reliability (CR)

Composite Reliability (CR) values for constructs such as Organizational Support (OS), Knowledge-Sharing Practices (KS), Absorptive Capacity (AC), and Innovation Capacity (IC) surpass the 0.7 threshold, demonstrating strong internal consistency among the measurement items.

 OS: CR values for OS1, OS2, and OS3 are all above 0.7, demonstrating reliability in capturing the Organizational Support construct

 IC: Standardized regression weights (e.g., IC4 = 0.887) show strong factor loading, ensuring reliable measurement

The data presents various metrics with their corresponding values, indicating performance levels across different categories For instance, IC shows a value of 463, while AC ranges from 664 to 904, with AC1 achieving the highest score The OS category has values between 758 and 902, with OS2 leading at 902 In the KS category, KS2 stands out with a value of 937, followed closely by KS1 at 890 The IC metrics vary from 797 to 887, with IC4 at 887 being the highest Overall, the data highlights the differing performance levels across the categories, emphasizing the strengths of AC1, OS2, and KS2.

Convergent validity assesses whether indicators of a construct converge on a single underlying dimension It is verified through:

 Factor Loadings: Standardized regression weights for all observed variables should exceed 0.5, ideally above 0.7

 Average Variance Extracted (AVE): AVE > 0.5 indicates sufficient variance captured by the construct

Factor loadings for all constructs are significant (p < 0.05) and mostly above 0.7

 KS1, KS2, KS3 have loadings > 0.8, confirming convergent validity for Knowledge-Sharing Practices

 IC1 through IC5 show consistent high loadings, ensuring robust convergence for Innovation Capacity

 AVE values calculated for all constructs are above the 0.5 threshold

Model NPAR CMIN DF P CMIN/DF

Model RMR GFI AGFI PGFI

Model RMR GFI AGFI PGFI

TLI rho2 CFI Default model 961 952 993 992 993

Model RMSEA LO 90 HI 90 PCLOSE

All Model Fit indices are within acceptable levels

Reliability: All constructs exhibit internal consistency, ensuring that the measurement scales are robust and suitable for capturing the constructs

Validity: Both convergent and discriminant validity tests confirm the theoretical distinctiveness and measurement adequacy of the constructs in the model

Model Fit: The model's overall fit indices are within acceptable ranges, supporting the structural integrity of the proposed relationships.

Structural Equation Modeling Analysis

Figure 3.4 Structural equation model: standardized estimates

Source: Author’s analysis based on survey data (2024)

The SEM analysis evaluates the relationships between Organizational Support, Knowledge Sharing Practices, Absorptive Capacity, and Innovation Capacity

Figure 3.5 Result of the hypotheses testing

H1: Organizational Support positively influences Absorptive Capacity

Estimate = 0.509, CR = 5.010, p < 0.001: Supported This result indicates that organizational support strengthens absorptive capacity, aiding VNPT Technology’s goal of leveraging external knowledge for innovation

H2: Knowledge Sharing Practices positively influence Absorptive Capacity

Estimate = 0.305, CR = 3.814, p < 0.001: Supported Effective knowledge- sharing enhances absorptive capacity, which is crucial in the ICT sector for rapid adaptation to new technologies

H3: Organizational Support positively influences Innovation Capacity

Estimate = 0.398, CR = 4.493, p < 0.001: Supported This highlights the role of organizational support in fostering innovation, emphasizing the importance of management backing and resources

H4: Absorptive Capacity influences Innovation Capacity

Estimate = 0.037, CR = 0.572, p = 0.567: Not supported This suggests that absorptive capacity may need other factors, such as a robust innovation culture, to directly impact innovation

H5: Knowledge Sharing Practices positively influence Innovation Capacity

Estimate = 0.402, CR = 5.946, p < 0.001: Supported The collaborative culture fostered by knowledge-sharing practices enables creativity, a critical factor in VNPT Technology’s innovation strategy.

Discussion of Key Findings

The study reveals that organizational support significantly enhances both Absorptive Capacity and Innovation Capacity (IC) within VNPT Technology's R&D department, highlighting its crucial role in fostering innovation These findings underscore the importance of strategic support mechanisms for VNPT Technology and the broader ICT industry, suggesting pathways for further innovation enhancement.

Key Finding: Organizational Support (OS) has a strong positive influence on both Absorptive Capacity (AC) and Innovation Capacity (IC), as evidenced by the significant estimates in SEM analysis

In the fast-paced ICT industry, the ability to absorb new knowledge and drive innovation hinges on critical factors such as resource availability, managerial support, and a nurturing organizational culture To remain competitive, companies must establish structures that not only provide necessary resources but also foster a spirit of exploration and creativity among employees.

VNPT Technology can enhance its competitive advantage by further developing support systems, including improved access to advanced tools and research databases, while ensuring continuous resource availability for ongoing growth.

56 training and mentoring from management Regular feedback loops and resource availability will reinforce engineers' confidence and motivation to innovate b) Knowledge Sharing Practices Enhance Absorptive Capacity and Drive Innovation

Key Finding: Knowledge Sharing Practices (KS) significantly impact both Absorptive Capacity and Innovation Capacity

Knowledge-sharing practices, including collaborative platforms, mentorship, and cross-functional collaboration, enhance employees' ability to integrate and utilize external knowledge, leading to faster information dissemination, mutual learning, and increased innovation VNPT Technology can benefit from this by establishing formalized and inclusive knowledge-sharing channels, such as regular inter-departmental workshops, a structured mentorship program, and digital platforms for sharing insights and best practices By prioritizing these practices, the company can foster a culture of collective learning, which is crucial in the ICT sector, where innovative solutions often require interdisciplinary collaboration.

Key Finding: The analysis showed a non-significant direct relationship between Absorptive Capacity (AC) and Innovation Capacity (IC)

Absorptive capacity improves an employee's ability to integrate external knowledge, but it does not ensure that this knowledge will lead to innovative results This indicates that while absorptive capacity is essential for fostering innovation, it is not sufficient on its own Additional factors, including organizational incentives, a culture that prioritizes innovation, and specific project requirements, play a crucial role in translating knowledge into successful innovative outcomes.

To transform absorptive capacity into tangible innovation outcomes, a structured mechanism is essential to motivate employees in utilizing assimilated knowledge within product development Furthermore, an organizational environment that actively supports and prioritizes innovation is crucial for fully realizing the potential generated by absorptive capacity.

To enhance its innovation capabilities, VNPT Technology should adopt targeted strategies that promote the effective application of acquired knowledge, thereby bridging the gap between absorptive capacity and innovation.

To enhance innovation within your organization, it's essential to establish clear key performance indicators (KPIs) that directly connect employee contributions to innovation outcomes For instance, you can track the number of new product ideas generated or the implemented process improvements initiated by R&D engineers.

To foster innovation, organizations should implement recognition programs and monetary incentives for employees who effectively convert acquired knowledge into creative solutions This may involve establishing awards for outstanding innovations and offering bonuses linked to the successful execution of projects.

Implementing dedicated innovation time allows R&D engineers to engage in personal or team-driven projects, similar to Google's "20% time" initiative This approach empowers employees to explore creative applications of their expertise, fostering a culture of innovation and enhancing overall productivity.

 Cross-Functional Collaboration: Encourage collaboration between R&D teams and other departments, such as marketing and production, to identify opportunities where absorbed knowledge can address real-world challenges or customer needs

Implementing structured knowledge integration programs is essential for organizations to effectively incorporate external insights into their projects By establishing formal processes and tools, companies can ensure that this knowledge aligns with their strategic objectives and is actively utilized within the innovation pipeline.

VNPT Technology can enhance its absorptive capacity by addressing existing gaps, which will lead to significant contributions to innovation and a competitive edge Additionally, understanding gender differences in knowledge-sharing practices is crucial for optimizing collaboration and fostering a more inclusive environment.

Key Finding: Gender was found to significantly influence Knowledge Sharing Practices (KS), with different perceptions or participation levels observed between male and female employees

Gender differences in knowledge-sharing may stem from cultural or structural factors within organizations that influence comfort levels, communication styles, and access to informal networks It is essential to recognize and address these differences to foster an inclusive environment where all individuals feel empowered to engage in collaborative knowledge-sharing.

To enhance collaboration and knowledge-sharing at VNPT Technology, it is essential to implement structured team-building activities and training that promote equitable participation By ensuring that all team members, regardless of gender, have equal access to knowledge-sharing platforms, the R&D department can significantly improve the quality and effectiveness of its collaborative efforts This approach also addresses experience-related differences in the perception of organizational support, fostering a more inclusive work environment.

Key Finding: Employees’ experience levels significantly affected their perception of Organizational Support (OS)

Experienced employees often have distinct expectations for organizational support, shaped by their familiarity with autonomy and their ability to identify organizational limitations.

Discussion of Key Findings with Comparison to Previous Studies

This section compares the study's findings with previous research discussed in Chapter 2: Literature Review, along with other relevant studies, to contextualize the results and highlight their significance in innovation management It emphasizes the importance of organizational support and absorptive capacity in aligning with these findings.

Amabile's (1997) framework highlights the significant impact of Organizational Support on Absorptive Capacity, emphasizing that organizational resources, managerial encouragement, and an innovative culture are essential for fostering creativity and innovation This research underscores how supportive environments empower engineers to effectively recognize and integrate external knowledge.

61 as highlighted in studies like Scott and Bruce (1994) and Martins & Terblanche

In 2003, research highlighted the significant role of organizational support, and our study further demonstrates its specific influence on absorptive capacity, particularly regarding VNPT Technology's objectives for ICT-driven innovation.

Knowledge Sharing Practices and Absorptive Capacity: Supporting

Nonaka & Takeuchi (1995) The significant relationship between Knowledge

Sharing practices and absorptive capacity are essential for fostering innovation, as highlighted by Nonaka and Takeuchi's SECI model VNPT Technology's emphasis on collaborative platforms and mentorship aligns with global trends identified by Tsai and Cummings, creating an environment where employees can effectively integrate and leverage external knowledge.

Organizational Support and Innovation Capacity: Expanding Oldham

& Cummings (1996) The significant impact of Organizational Support on

Innovation capacity is closely aligned with existing research that identifies managerial support and resource availability as crucial factors for fostering innovation (Oldham & Cummings, 1996; Martins & Terblanche, 2003) VNPT Technology exemplifies these principles, showcasing that a supportive organizational culture can significantly boost innovation outcomes.

Knowledge Sharing Practices and Innovation Capacity: Reinforcing

Hansen's (2002) research highlights the significant link between Knowledge Sharing Practices and Innovation Capacity, indicating that effective knowledge-sharing networks enhance the creation of innovative products Our findings support this relationship within the ICT sector, emphasizing that interdisciplinary collaboration is crucial for tackling intricate technological challenges.

Absorptive Capacity and Innovation Capacity: Divergence from

Zahra & George (2002) The non-significant direct relationship between

The relationship between absorptive capacity and innovation capacity challenges Zahra and George's (2002) claim that absorptive capacity directly boosts innovation This divergence may arise from the lack of mediating factors, like organizational incentives or a targeted innovation strategy, in our model It underscores the importance of a detailed understanding of how absorptive capacity effectively leads to tangible innovation in VNPT Technology's R&D activities.

Mediating Effects: Bridging Organizational Support, Knowledge

The study highlights that Knowledge Sharing Practices serve as a mediator between Organizational Support and Absorptive Capacity, reinforcing previous research on their interconnectedness Notably, the absence of a direct effect of Absorptive Capacity on Innovation Capacity underscores the importance of mediators such as collaborative practices and organizational incentives in achieving successful innovation outcomes.

The findings highlight the necessity for VNPT Technology to cultivate a collaborative environment and utilize organizational support to boost absorptive capacity and innovation results To tackle the identified gaps, including the minimal direct influence of absorptive capacity, it is essential to implement customized strategies that encourage the application of acquired knowledge, such as innovation-driven KPIs and specialized R&D initiatives.

This comparative analysis validates and enhances our understanding of innovation capacity, presenting actionable recommendations for VNPT Technology while contributing valuable insights to the wider discussion on innovation in the ICT sector.

DISCUSSION, RECOMMENDATION, AND IMPLICATION